Define your property management needs first

This is crucial to making the correct appointment for your property. Knowing your needs as a property owner; knowing how your property needs to be maintained and meet safety legislation; and knowing what  your fellow property owners need, are all principal factors to document ahead of your initial research into property management companies.

Align your needs with the services offered to find the right property management company to meet your needs.

Ensuring you contact a managing agent with the right profile for your property begins with aligning your needs with the services the managing agent offers.

If you own a property in a building that contains 100+ apartments, then you are going to need a management company that can handle large developments. The agents who are adept at managing large developments can offer a multitude of beneficial services to property owners.

On the other hand, if your development is quite small – e.g: your development comprises of ten flats – then you could be better served with a local agent who focus  on smaller property portfolios.

Some of the key services you should be looking for from a managing agent include:

• Maintenance and Repairs – Do they have in-house staff, or do they subcontract? What is their response time to fix issues? How are planned repairs communicated to leaseholders?
• Service Charge Collection and Financial Reporting – Ensure the agent’s methods are transparent, efficient, and ethical. Does the management company have an online portal where tenants can make payments and manage their accounts?
• Legal Compliance? – They should be well-versed in local tenant laws and all aspects of health and safety legislation – such as the Building Safety Act 2022, the Fire Safety Act 2021 – and ensure your property .
• What is their management strategy?
• How do they communicate with leaseholders and tenants? – How do we escalate an issue? Will they communicate on a regular basis?
• How often do their property managers visit the development?
• What additional services are offered? – Do you have major works needed on your property? Do you need a managing agent with the resource to handle this?

Some of the answers to these questions will not be obvious from the management company’s website, so you may need to arrange a phone call with one of their team.

Look for length and breadth of property management expertise

• Industry Experience: Look for companies that have been in business for several years, as they are likely to have a strong track record. Ask if the management company has experience of managing a similar property to your own? If necessary, can they handle large, complex developments or heritage sites? Ask for case studies on comparable sites.
• Certifications and Affiliations: Check if the company is part of recognised property management organisations, such as The Property Institute (TPI), RICS, the Association of Retirement Housing Managers (ARHM), are they affiliated with an ombudsman scheme such as The Property Ombudsman.
• References: Ask for and contact current or past clients to get firsthand insight into their experience with the company. References are typically requested when a property owner asks a managing agent to pitch for the management of their property, but there is nothing to stop you asking for them in advance.
• Local knowledge: Ask if they have local knowledge and expertise. Are the property management team local to your property? Do they manage other properties in the area?

Take note of the management company’s communications

• Responsiveness: Communication is key in property management, and delays can cause problems. Take note of how quickly they respond to enquiries (including your own). Some organisations have specific Service Level Agreements (SLAs), whereby they might state, for example, that they will be in touch within 48 hours. Other organisations will respond a lot quicker. You must ask yourself which you would prefer if you were their customer.
• Ease of Contact: Do they have accessible points of contact such as the phone, email, or online portal, ticketing system, social media?
• Tenant Relations: A good property management company will have effective communication with tenants and resolve issues promptly. Ask how does the property management company handle tenant issues and disputes?

Look carefully at the property management company’s fees

Transparency when it comes to fees is a sign of a genuine and trustworthy organisation. It is important to remember that the cheapest option is very rarely the best option and can come with hidden fees and charges when it comes to repairs and maintenance.

As the customer, you will have a budget in mind. However, you must remember rising costs – such as inflation and taxation – impact the whole of the supply chain, from the management company to their contractors, and to the utilities for the properties they manage.

• Fee Structure: Ensure the agent’s fees are clear and reasonable?
• Additional Costs: Ask about extra charges for services including maintenance, advertising, community engagement events, debt collection, or evictions.
• Contract Terms: Ensure you understand the length of the agreement, the termination clauses, and any penalties for breaking the contract early.

Find out what the managing agent’s safety and compliance track record is

On the back of the Grenfell Tower tragedy, safety is now the number one priority in the property management sector.

Adherence with up-to-date legislation is not an option, it is the law. Ask for evidence of a strong track record of risk management and compliance with health and safety legislation. Each company has a different approach to managing the health and safety of their homeowners, find out what their strategy is.

Ask about customer retention

High customer retention rates are a sign of a good managing agent. Some organisations have a high churn of customers, typically those who are a) big entities where the relationship between managing agent and customer has become transactional, and b) small entities who may not have the resources to deliver what they have promised.

Online reviews are only one part of the whole picture as they are typically posted by residents, not the property owners. Ask any management companies that interest you about their Net Promoter Score (NPS), also what their client retention percentage is.

Ask for reviews, what do their clients say about them?

Adoption of technologies for efficiency

Adoption of up-to-date technologies is a sign of a forward-thinking organisation that looks for efficiencies, which is a good sign.

• Online Portals: Many property management companies offer online portals for both the property owners and tenants. This makes payments, maintenance requests, and communication more efficient.
• Bespoke App
• Accounting Tools: Ensure they provide clear, regular reports about the financial status of your property, including income, expenses, and vacancies.

Meet in person

• Personal Interaction: Meet with the company representatives in person to discuss your needs and get a feel for their professionalism and approach.
• Ask Questions: Be sure to ask about their experience with properties similar to yours, their processes for handling problems, and how they ensure the best results.

Trust Your Instincts

• Comfort Level: Do you feel comfortable with the team you have met? Trust is essential when handing over the responsibility for your property.
• Transparency: Remember, the property management company should be transparent in their business practices, with no hidden fees or vague answers.

Choosing the right property management company involves balancing your needs, expectations, and budget with the company’s experience and offerings. Taking the time to research, interview, and evaluate your options can ensure that your property is in good hands. We hope you find this checklist useful.

Download our handy infographic here: 10 Key points to consider when choosing a property management company

Premier Estates provide award-winning property management services across the UK. Please call 0345 491 8899 to speak to one of our team about managing your property portfolio.

You can find out more about us on our Linkedin Page.