What does the future of the Managing Agent look like?
February 5, 2025
The future of the managing agent looks promising, with trends including automation, sustainability, and data-driven decision making transforming the industry. However, as with many industries that are undergoing change, the future of the managing agent is not going to be without its challenges.
Signs a managing agent is doing a great job for you
In the main, if a managing agent isn’t the centre of attention and residents don’t notice the managing agent, then that means they’re doing a great job and things on a development are running smoothly.
However, there are times when an estate manager needs to be visible. When there is a residents meeting for example, and when there is a potential issue to be resolved, or an event taking place on site.


In which direction is the property management industry heading?
Regional Estates Director, Andrew Moores comments; “I don’t profess to be a politician, a policy maker or even an influencer, however I have strong thoughts about the direction in which our industry is moving – customer service is King! No longer can agents simply cosy up to developers and ground rent speculators and be rewarded with lucrative contracts. Some developers are realising the benefit of an excellent agent and putting service and satisfaction ahead of the mighty pound.”
“Residents are getting savvier, good quality information is accessible to the man on the street and it’s everywhere! Organisations led by The Property Institute (TPI) – which was formed when industry leaders, the Association of Residential Managing Agents (ARMA) and the Institute of Residential Property Managers (IRPM) merged – The Leasehold Advisory Service (LEASE), the Association of Retirement Housing Managers (ARHM) and the Royal Institute of Chartered Surveyors (RICS) are making industry information and legislation easier to digest.
“The Grenfell Tower tragedy and the heavily reported ‘Leasehold Scandal’ have undoubtedly had a profound effect on our industry. The draft Leasehold and Commonhold Reform Bill is intended to be published in the second half of 2025, which will include the banning of ground rent and forfeiture. The focus of that bill is to reinvigorate commonhold and a White Paper on reforming commonhold is due to be published in early 2025.
“I predicted in 2019 that the Government would look to empower property owners wherever possible, and rightly so. Property owners have by far the greatest stake in the development, and they should be in charge of how their development is managed and maintained.”


Customer service is king!
‘The customer is king’ is a cliché, but it is a mantra that reaps benefits for those organisations who adhere to its principles.
Property management companies are prioritising customer service, providing better communications and faster responses to queries. They are ensuring that residents and developers feel heard and valued to build relationships built on trust where concerns are addressed quickly and effectively.
Andrew adds; “I commend the work undertaken by the Law Commission in striving to get a fairer deal for leaseholders of houses and flats, Lord Best and the working group seeking to regulate property agents, and the Competition and Markets Authority (CMA), who investigated miss-selling and onerous lease terms within our industry.
“I would also draw attention to the voluntary industry pledge enacted by Rt. Hon James Brokenshire, the Secretary of State for Housing, Communities and Local Government. The pledge endeavours to eliminate bad practice from the Leasehold sector by asking key organisations within the sector to hold themselves to a number of business and professional standards.”
Three types of customer that need to be satisfied
What has to be understood, by everyone involved, is that there are different types of customer in all aspects of property management. It is not just about servicing the needs of the paying client. Indeed, residents and tenants who live on a development may not pay the managing agent directly – other than paying their monthly rent – but they are still customers who are arguably more important to focus on and ensure satisfaction for. Industry regulations are being introduced to ensure greater fairness for residents and tenants, and 2025 could see a sea-change within the industry.
There is also a third customer relationship that, if improved, would significantly help to improve customer satisfaction across the whole industry… that of the property management company’s internal teams.
Improving internal stakeholder relationships throughout a managing agent’s structure can facilitate better service, improved communications, greater retention of qualified and experienced staff members.
An improved internal culture can change the narrative within the property management industry from reactive to proactive, which can only be of benefit for everyone.
Finding the right balance
On the back of Housing Minister, Matthew Pennycook’s announcement late in 2024 that he planned to revive Lord Best’s 2019 Regulation of Property Agents (RoPA) report and introduce mandatory qualifications for managing agents. This can only be a good thing for all parties concerned in ensuring fantastic service and a better regulated industry.
Customer service is an exercise in finding balance and accord, and team leaders are going to need to be supported to find the required balance to keep everyone happy. This will become ever more important if, and when, mandatory qualifications for property management staff are imposed.


The industry needs to stop the race to the bottom
There is a wider concern among the property management sector in the UK that client demands for the lowest fees could significantly impact the qualify of service delivery. Widely known across many industries as ‘a race to the bottom’, a trend in service costs being driven down to meet tight client budgets could work against the details stipulated in the reforms being introduced into the property sector.
The demand for lower management fees will likely mean a reduction in services and the quality of those services.
A proposed management fee is based on a specific set of services. Some services are proved directly by the managing agent, others are supplied by a team of trusted third-party contractors, which the managing agent oversees.
All of the services provided are vulnerable to market forces, such as rising inflation, increased taxation on raw materials and imports, increases to employer national insurance contributions NICs, fuel costs, insurance premiums, and even the availability of skills on the labour market, to name but a few.
Andrew adds: “I am concerned by a ‘race to the bottom’ scenario within the industry and frequently see agents charging an unrealistic management fee. Premier Estates have never hidden the fact that we are not the cheapest agent, but we pride ourselves on providing an extremely high standard of management.
“To put it another way, when buying an apartment, you do not simply choose the cheapest property. You choose the best value for money whilst ensuring your criteria are fulfilled as best possible. The idea that all agents are, or should be, identical in every way is fallacy – it is like saying all properties are identical.
“I believe that there is demand for a variety of agents providing a variety of service at a variety of costs, but it is essential that all agents are professional and competent. The likely reforms will create a vast number of resident led groups with a vast array of differing requirements.
“Some will self-manage entirely, others may require a professional ‘skeleton’ service and others will require a thorough and all-encompassing management service. Comparisons here could be drawn with the letting of properties and the involvement of professional letting services.”


Is the RMC structure the future?
Andrew adds; “Whether it’s Commonhold or Leasehold, I foresee the Resident Management Company (RMC) structure as the future for all developments – with the RMC taking on the Landlords rights and responsibilities and importantly, owning the building. They will, however, need trustworthy, professional, knowledgeable and – in an ideal world – regulated managing agents. I am fortunate to work for a Company who share my passion for satisfying our customers – indeed it was the Company who instilled and nurtured my passion.
“Premier Estates has always put the customer first. Resident Management Companies (RMCs) are our bread and butter – whether it is a 300 unit, high rise, city centre tower block or a smaller housing estate in the countryside, we place great value on every single instruction and every single property owner.”
Andy Moores, MTPI, AssocRICS, is a Regional Estates Director at Premier Estates Limited.
Premier Estates provide award-wining property management services across the UK. If you would like to speak to one of our team about managing your property portfolio, please call 0345 491 8899.
Sources:
www.thenegotiator.co.uk/news/housing-minister-reveals-urgent-plans-to-end-leasehold-and-enact-ropa

