Where is the Property Management Industry Falling Short for Residents?

It’s no secret that in the property management world, customer experience reigns supreme and the property management industry is often under intense scrutiny. From inadequate communication to inefficient maintenance processes, there are significant gaps that impact resident satisfaction and operational efficiency. However, at POD we are already trailblazing in our approach to ensure we make a difference to our industry.

This week, we delve into where the industry may be falling short, exploring the common pitfalls that often hinder success and detail how we are making the changes to meet modern expectations and set ourselves apart. 

The Ever Changing Industry 

The property management industry is ever changing and in a constant state of flux, driven by shifting customer expectations, advancements in technology, and evolving regulations. For many property management companies, it can be hard to keep track of these changes, let alone discover how best to navigate the components to successful property management as things continue to adapt.

The demand for seamless living experiences, quick responses and personalised services has reshaped property standards, which are transforming how buildings are managed. It’s vital for property managers to stay agile, innovative and informed in order to make their mark in 2024.

Falling Short

So, where exactly is the property management industry falling short? We’ve identified a few key areas below and provided insight into how POD are mitigating further issues and redefining property managing standards for our clients and customers.

Understanding Service Charge

There is often confusion as to where service charge is being spent. Afterall, if it’s not broken, it doesn’t need fixing right? Wrong. Planned Preventative Maintenance (PPM) work means to proactively maintain plant and machinery before something potentially goes wrong and costs more than budgeted for.

What residents aren’t always told is that a reputable property management company aims to cause as little disruption as possible to day-to-day life. Fundamental tasks and processes are constantly being carried out, even in the background – there is always more than meets the eye! From essential communal maintenance, PPM work and insurance, to the detailed tracking, reporting and record-keeping of operations, these meticulous processes and their expenses aren’t seen by residents and therefore wouldn’t be considered when looking at the value for what they’re paying.   

At POD, we are forthcoming in our approach, ensuring our customers know exactly where they stand when it comes to how we manage their buildings and its impact to the service charge. We are more than happy to explain any process and can assist in providing financial breakdowns to clarify expenditure and highlight what doesn’t at first meet the eye. For more information on understanding service charge, see our recent blog.

Transparency on Fees 

Following on from the above, unfortunately, the increasing cost of maintenance in a shared residential environment is often not properly communicated to the end customer, which can cause confusion and frustration, when service charges rise.

Where money is concerned, it’s incredibly important that all partnerships are aware of service and maintenance cost principles from the get-go. This transparency allows trust to build and enhances long-term client satisfaction. Clear and upfront communication about fees prevents misunderstandings and unwanted surprises.

At POD, we are always transparent about our pricing. We ensure that the difference between the likes of service charge and managing fees are property explained to our clients. We also believe that it’s important to educate on the fact that managing agents do not profit from increases to the total service charge amount – our management fees are fixed and actually form a very small percentage of overall costs.

We often hold in-person presentations for our residents at the communal spaces in apartment blocks to ensure awareness of our processes and that fees and pricing are carefully explained. This is also followed up with regular financial reports for full disclosure.

Response and Resolution Times 

Response times are important, but so are resolution times. Within the property management industry, there is a focus on the initial response times. However, how the query is handled and resolved speaks volumes about a property management company. Residents want to feel acknowledged and to know that a solution is possible, resulting in higher customer satisfaction.

At POD, we pride ourselves on our tracked response times. With over 400,000 customer interactions in the last year, our response times are under 6 hours (and under 1 hour if we have an on-site team in place). Due to the diligent work of our staff, our resolution rate is also 90% within 19 hours. This is unrivalled in the industry.

Traditional property management firms often rely on a single point of contact for all types of queries, particularly at unstaffed sites. This approach can lead to juggling priorities, which can have an impact on customer satisfaction. POD Management does things differently. We use a two-layer approach where a dedicated support representative handles each query, without the need to bring in a customer relationship manager. This enables us to address a huge 90% of queries straight away.

We want our customers to experience exceptional service and feel completely supported. This is reflected in our all-time happiness rating of 95%, our many 5* Trustpilot reviews and overall score of 4.3 stars – the highest of our competitors.

Employee Welfare

It’s clear the need for instant replies are now more prevalent than ever before. With the likes of instant messaging and WhatsApp for property management companies, the industry is adapting to appease the volume of correspondence received. Although this level of communication allows property managers to easily increase their response and resolution times, it can also become exceedingly stressful for employees.

A good reputation should never come at the cost of your lifeblood. At POD, we are acutely aware that without our amazing and dedicated team, we wouldn’t be able to do what we do to the standard at which we do it! The welfare of our staff is our top priority and employees who aren’t overwhelmed with workload and enjoy coming to work ultimately means a better level of service and communication. So, you see it comes full circle. 

Additionally, we have invested in automated smart systems so that overall processes are streamlined for our staff, meaning they are able to give their full attention and time to customer matters that should take precedent.

Skimming Commissions and Kick Backs

In the property management industry, skimming commissions or a kick back is where a managing agent syphons off a portion of a contract cost for themselves. For example, this could be reporting maintenance work that cost more to fix than it actually did.

Those who skim commissions or take kick backs from suppliers are likely to appear far cheaper on the surface than those who seek regular margins through their fee. This is not only ethically wrong, but detrimental to a business. Once a customer becomes aware, they’ll simply find another agent (and let others know all about why they’ve left!). Unfortunately, it's these kinds of antics that tarnish the reputation of the property management industry and honest companies are then bracketed under the same umbrella.

At POD, we never take any commissions or accept a kick back from contractors or suppliers. Through careful procurement, we are able to use our bulk buying power to bring better value for money, and we never accept commissions, ensuring 100% of the savings we achieve are passed to our customers.

Under the New Homes Quality Code, we’re aware of the importance of transparency and accurate, realistic budgeting. We also belong to RICS, which requires us to be a member of a redress scheme.

Get in Touch with POD

At POD, we’re always innovative and consistently agile, however, at our core is a genuine care and consideration for our clientele in every decision we make. We only want the very best for our partners and it’s this mantra that has allowed us to move from strength to strength since 2017.

 If you are searching the property management industry for a credible managing agent to assist in the smooth running of your property development this year, the POD team are on hand to help you today:

●      Fill out our enquiry form

●      Email us at relationships@podmanagement.co.uk

●      Call us on 0333 577 6656

We look forward to hearing from you!