How RMC Directors Can Safeguard Their Interests When Changing Managing Agent
Written by Claire Bates MScBS MTPI AssocRICS Head of Growth and Partnerships at Strangford Management Ltd
Lets face it, not every relationship is built to last, and in the fast moving world of property management even the best of relationships sometimes come to an end. Whilst some people want to discuss the “what if’s” at tender stage, many don’t, and unfortunately this can lead to some difficult break up discussions.
Prior to being in my role as Head of Growth and Partnerships at Strangford Management, I had spent 10 years on the front line, as a Senior Property Manager and also Head of Property Management. I had seen my fair share of new business during that time, as well as handovers, always supported by a team of back office staff who handled all of the paperwork for me. It was, therefore, an eye opener starting to deal with handovers on a daily basis and realising just how difficult they could be.
Armed with my handover list, I had to wonder just how difficult it could be. The information, legally belonging to the client, would be stored on a companies system, and all they simply had to do was collate that information onto a file and hit the send button. I envisaged in my head how I would handover a site to another agent and concluded it was a simple task. Sadly, my experience could not be further from the truth, and I am sure my fellow new business teams have unfortunately experienced the same. Too often we have experienced handovers which have either been left until the very last minute, or we have had missing information well after the handover date, and I am sure many other agents have experienced these struggles.
So, the all important question – as an RMC or RTM Director, how can you ensure that if ultimately the romance is dead and its time to move on, that your information is safeguarded and will be passed on, in a timely manner, to your new agent?
Firstly, and likely most obvious, please ensure you are choosing a TPI member firm (The Property Institute). The reason for looking for a TPI member firm is two fold; firstly, the business has to go through the stringent registration process and will subsequently be audited by TPI, who will ensure that they are upholding the member standards that the firm has signed up to. Secondly, being a TPI member firm gives us the chance to make a member to member complaint should the worst happen, which will hopefully not only help to resolve the issue, but also help to ensure that practices are improved for the future. I should also mention that with regulation still firmly on the horizon, a TPI member firm is a sensible choice to help futureproof your decision.
Secondly, ensure the contract you are signing has a notice period. Again, this may sound fairly obvious, however I recently came across a contract that only had an end date with no notice period. The client had the option of either waiting another 9 months for the contract to end, or enter into lengthy negotiations in an attempt to end the contract early, causing significant time delays in moving to their new preferred agent, as well as taking up the Directors valuable time. Should the relationship break down, no one wants to be stuck with their soon to be ex partner for another 9 months!
Thirdly, ensure your contract details how handovers will be handled, and don’t be afraid to ask those all important questions:
How will our company data be stored?
How would it be transferred to another agent?
What format is the information stored in – is Microsoft, or google for example? Microsoft is the most common form and therefore systems such as google sheets can cause problems at handover.
What time scales will you work to for the handover?
Can you provide a list of what information will be included on the handover?
At what point will you handover the keys and fobs to the new agent?
What does your financial handover look like, and when can we expect all funds to be handed over?
Do you commit to timescales for handovers in your management agreement, if not, can we agree these in advance?
Lastly, and the most important takeaway for agents and Directors alike, is that the information belongs to the Client. It should never be gatekept, nor should handovers be delayed, as it not only causes frustration for the incoming agent but also leaves a final bad impression for the Directors, and lets face it, just like your ex, you never know when you might bump into them again!
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Who are Strangford Management? We are a company of property management specialists who understand the essential mix of modern management methods and personal relationships in the successful management of residential buildings. We specialise in creating value and optimising a buildings potential, tying this in with our unique procedural approach that has been tried and tested over years of building management.
Strangford Management Ltd | 0203 651 5870 | office@strangfordmanagement.com
