I recently had an interesting experience - I attended a Residents' Association meeting as a customer/leaseholder for the first time ever and, frankly, I cannot believe I have never done this before. It always seemed a bit like a busman's holiday, but then I might have learnt a great deal.At an evening meeting some 30 residents sat in front of a panel made up of a very hard working Tenants' Association chair and secretary, the client's site manager, the managing agent's site manager, the property manager and his boss, the regional manager who had travelled a long distance and were staying overnight. The development is mixed use, listed, complex, as yet unfinished and substantial in terms of size and costs.
So, what did I learn? Well, it was not a first to hear a manager wholeheartedly blaming their client for delays to budgets and accounts and, as often is the case, the agent was entirely honest in doing so. Just, perhaps, not in front of the client's representative(!). However, that did not mean that he could not have discussed the draft budget and previous years (as yet unsigned) accounts in some detail. But, as far as I could ascertain, he had not thought to bring copies of these important documents. The budget is 2 months overdue, the accounts 8 months overdue. The agent is in serious breach of all sorts of very clear rules and regulations. Blaming the client does not change this.
Major works are due this year but he had no details other than that they would be serving S.20 notices soon for external redecoration. I asked if it was to be phased but his answer was, 'we'll have to see how much it is first'. It was clear he didn't really know what was being proposed in any detail.
Questions relating to sub letting and pets were asked. But since no one had thought to bring a lease along the questions could not be answered with any real clarity. Nor could the question as to why they would not accept monthly standing orders be answered. The correct answer is because the lease only allows for quarterly payments in advance. No reason why you shouldn't pay one quarter in advance and then monthly...
As a customer I was left fuming because I left the meeting no better informed than when I arrived. I had read the lease, I had with me copies of previous accounts and the last budget. I had driven 3 and a half hours to get to the meeting and had to leave at 5.30 the following morning. I would dearly like to think that my company do not treat our customers this way. I intend to find out by doing some mystery shopping excercises in the next few months. So be warned - as a 'customer' I felt very badly treated. A little knowledge is a powerful thing. It felt as if there was an assumption of general ignorance that would allow for being unprepared.
The meeting should really have been cancelled.
So here is my advice to managers presenting to Residents' Associations or to their Client. It is not particularly complicated:
1. READ THE LEASE
2. READ THE LEASE AGAIN AND UNDERSTAND IT.
3. Take a copy of THE LEASE with you to the meeting. Derrrr!
4. Take a copy of the BUDGET along - whether or not it is finalised. It is my money you are requesting - the least I can have is a chat about it.
5. A copy of the ACCOUNTS if they are due. Even if they are draft.
6. Bring a SCHEDULE OF ARREARS. Know what the total aged debt is and how many people you are proposing to take action against. Is there an issue?
7. If you are planning works, understand what is being proposed and how the costs are likely to be met.
8. Understand what is on residents' minds. Quite plainly (in this instance) the issue of dogs, parking, allocation of estate costs and subletting come up at every meeting. Have a planned response.
9. Speak to everyone involved in running the development. Who is deciding what works are due? Who knows what is being done to install LED lighting for example? Is all compliance up to date? Tell your customers what you have been doing to mitigate costs. You owe that to them at the very least.
10. Discuss how you are taking a systematic approach to dealing with letting agents.
11. PREPARE PROPERLY!
All of this will save you lots of time later and time is important in a managers very busy life.
I am mystified as to how managers can go to a meeting without basic financials and a lease. I would never have done this - but then I had a file for every property with the relevant data easily to hand. Perhaps it is technology that is letting us down? I know that is partly to blame for the lowering of all sorts of standards. But most importantly, please don't assume that your audience are uninformed - it is arrogant beyond belief.
