Top Tips for Changing Property Managing Agent
Wondering how to change your property management agent? It can be a positive, smooth process if you choose the right provider. You may be contemplating this change due to current poor management, which can burden you with stress, frustration, and disputes.
Here are some key reasons you should consider changing property management agent:
Poor customer service & satisfaction
Lack of transparency over where fees are earned
Feeble control over finances and how your service charges are spent
You don’t have to put up with it. We understand you may feel stuck with your current provider, but here at POD we’ve created an easy-to-digest guide based off our years of experience and industry award-winning expertise. The steps are as follows:
1) Give Notice
Since the actual termination date may be far in the future, you may have to wait months to complete the change. To ensure smooth transition, inform your current property managing agent as soon as you can. Remember, you are changing managing agent for the best, so the quicker you inform, the faster you can enjoy the results.
2) Get a Shortlist
Since every building is unique, you’ll have to gather, compile and be clear on the requirements. This allows your new agent to provide accurate pricing, ensuring both parties are satisfied and motivated to move forward.
At POD, we’ve identified the most important attributes to look for when shortlisting:
Accreditations
Membership in esteemed professional bodies such as TPI (The Property Institute) and RICS (Royal Institution of Chartered Surveyors) reflects a strong commitment to regulatory compliance and the enforcement of high standards. These affiliations not only signify a dedication to maintaining industry best practices, but also provide property management agents with access to a wealth of resources, continuous professional development opportunities, and a network of industry experts. By adhering to the rigorous standards set by these organisations, property management agents can ensure they deliver services with integrity, excellence, and a high level of professionalism.
POD exemplifies this commitment, holding both RICS and TPI memberships, and being guided by a strict code of conduct from The Property Ombudsman.
Safety
Your home’s safety is a necessity, not a choice! When looking how to switch property management company, ensuring the prospective property managing agent meets safety standards is important. Participating in safety audits and undergoing evaluations are crucial for obtaining unbiased validation of the highest safety standards. The British Health & Safety Council is one such example – it’s an independent body, one who audited POD and where we achieved 90% (4 stars), showcasing how we are committed to safety procedures and compliance.
Effective Communication
At a minimum, a property management agent should offer multiple communication channels, including online and telephone support. Unfortunately, many are known for poor customer service, which is a common issue in the industry. With an average happiness rating of 93%, an average response time of under 6 hours and an average resolution time of under 19 hours, POD delivers industry-leading customer service. This ensures you and your residents enjoy the peace of mind that comes from partnering with a truly customer-focused company.
Transparency & Clarity
This is a reoccurring issue with many managing agents, and one of the biggest reasons developers change managing agent to us. To give you an idea, at POD we are upfront and clear about not receiving any commissions from insurers or suppliers. Some managing agents will try to hide additional costs from you to make their management fees look attractive, so make sure to be asking the right questions – you want to switch managing agent for the better, not fighting against more costs than you bargained for. Our recent blog post, with opinions contributed by industry experts, details more questions to be asked during the tender process: Invitation to Tender: Top Questions to Ask a Prospective Property Management Company.
Adept in Financial Management
You are entrusting yours and your residents’ money with the managing agent, so you should really know it’s being properly looked after – there is no room for error here.
The property managing agent must ensure your service charge funds are held in an appropriate, designated, client account and not mixed with their own corporate funds. We believe these monies should be held in distinct accounts in the name of the client. This is a basic requirement of the RICS, and at POD we’re a proud member of and have the added benefit of providing additional protection for our clients through their Client Money Protection scheme, something not all agents will be able to offer you. Another key aspect is the separation of your funds from those of other clients. If funds are pooled together, you are entirely dependent on the property managing agent’s expertise and financial system to correctly distribute and allocate the money, making it much harder to differentiate; many property management agents fall short in this area.
Having individual client accounts ensures monies are reconciled correctly and you can view a monthly bank statement showing the same. Not only is this sensible, but it also allows for quicker production of year-end accounts. In addition, all our service charge and reserve funds earn interest which we credit to the individual account.
Furthermore, you will want to know your managing is adept at collecting and administering services charges. Cash flow is vital to the good running of a site and if your current property managing agent is slow at paying external suppliers, this could be an indicator of poor credit control processes and loose back-end systems. Unfortunately, many property managing agents owe significant monies to suppliers which ultimately impacts the service delivery on-site.
With POD, there’s no fear of this: we have robust processes to ensure cash flow is expertly managed and suppliers are paid on time, meaning our supply chains love working with us and they often go the extra step to support our clients in emergencies (should they arise)!
3) Other Things to Consider
So, you've found a potential agent that meets the criteria mentioned above. When looking how to change your property managing agent, there are additional considerations you might have overlooked:
Don’t be Fooled by Location
Having a local property managing agent sounds promising as it means they can attend the site quickly. However, this is only beneficial if the property manager is available and not already occupied with another property elsewhere. It is also unlikely the suppliers used to carry out repairs and maintenance will be that local, given you will want the best people for the job, so there is little benefit to be close by in reality.
At POD, while we predominantly provide block management in London and the South East, our expertise extends across the UK. We have successfully managed properties nationwide, demonstrating our ability to adapt to various locations and challenges. Our attention to the unique needs and requirements of each site ensures that, regardless of its location or distance, we can efficiently mobilise and maintain each property to the highest standards. Trust POD to deliver exceptional property management services wherever you are.
Look for Hidden Costs
Consents, debt recovery, and home mover packs are all ad-hoc items that can incur additional costs to homeowners. While a low headline management fee might be enticing at first glance, it’s important to be aware of these potential extra charges that could catch you off guard. Transparency is crucial in building trust when you change management agent. By understanding all possible expenses upfront, you can avoid unpleasant surprises and ensure that the management of your property is both efficient and cost-effective. Always ask for a detailed breakdown of all fees and services to make an informed decision.
You Get What You Pay For
Many managing agents offer low prices for a reason – it’s a low barrier to entry industry and you might be drawn to lower costs. However, these lower prices often result in subpar service or poor practices (as mentioned above), and you want the managing agent to have the time and expertise to manage the unique challenges that will come with the site. When you consider they will be managing such a valuable asset and ensuring your safety, would you risk compromising on quality by opting for less premier services?
Insurance
The ability for the property managing agent to administer insurance on your behalf is vital, as you never want to find out you are under insured when the time comes to call on it! Be sure to check that regular Reinstatement Cost Assessments are conducted, verify that the correct parts of the building are insured, and confirm that appropriate covers are in place for the insured risks. Additionally, check if they take a commission fee and have declared it, as this could be another source of income that might be used to make management fees appear artificially low.
Due to being regulated under the RICS DPB scheme (Royal Institute of Chartered Surveyors Designated Professional Body), POD excels the above, and in addition, our support team checks you have the correct insurance in place and that details are kept updated. Also, we do not take any commissions and charge a simple, low-fixed fee, which provides complete transparency over the cost and results in our management fees being set at a very reasonable price.
Proven Track Record
Social proof has never been more relevant in the property management landscape; with easy access to customer testimonials on trusted review sites like Trustpilot, it's wise to consult them to find the best property management companies in the UK. These are valuable insights into an agent's reliability, trustworthiness, communication skills, and problem-solving abilities. While they are essential for making an informed decision, they shouldn't be the only factor you consider. Reviews can occasionally be biased or skewed (especially if we’ve had to credit control someone!), so be sure to also evaluate other aspects outlined in this guide to ensure your decision is comprehensive and well-rounded.
We recognise Trustpilot as an important tool in feedback and transparency – currently, we at POD hold a 4.3 ⭐ ‘Excellent’ rating, which demonstrates our professional, top-tier property management capabilities.
Ready to Proactively Manage Building Operations
Sadly, some property management agents do not proactively manage buildings, particular when it comes to compliance, resulting in minimal oversight of the building’s management. This often leads to higher long-term costs and more reactive repairs, impacting the smooth running of the site. Maintenance delays become more common, and without regular site visits, residents may feel their needs are being neglected.
At POD, we monitor planned maintenance tasks to ensure the building is professionally managed and long-term costs are lowered. It’s an often-over-looked area of management that isn’t easily visible in the short term but will impact the smooth running of the site in the future. Ultimately, you will want the assurance your managing agent can take care of the essential upkeep of the property and protect your investment.
Changing Property Managing Agent Has Never Been Smoother!
With Managing Agent of the Year (2024) at the ACE awards under our belt, we’re proven to provide seamless transition. Our mobilisation team meticulously manages every detail, ensuring the process is efficient and stress-free. Let us handle the mobilisation process so you can fully enjoy the benefits of our award-winning property management services.
Learn more about POD’s award-winning property management services:
Ready to Make the Change?
Complete our switching form to get started or call us on 0333 577 6656!