The residential property development industry has faced a number of issues during the past few years and demand for land is high. It is therefore vital that the project runs on time and within budget to ensure the maximum return on investment. By outsourcing the management of a development from the outset, both time and money may be saved.
With any new development, there are likely to be teething problems. By involving a managing agent from the start and through the phased completion, problems may be tackled quickly and efficiently as they arise.
It is imperative for the managing agent to make a Developers’ job as easy as possible by dealing with many of the issues raised by residents and being the first point of contact. By working in partnership with the Developer from day one, a strong, long-term relationship may be formed based on a high level of service.
If a Resident Management Company is in place, the managing agent may educate interested Leaseholders in the responsibilities of a Resident Director in advance of the handover whilst providing continuity once the Resident Management Company takes control.
By setting up a steering committee comprising a host of interested leaseholders, a positive ongoing relationship may be established between the Developer and Leaseholders. This ensures cohesion and a sense of involvement from the outset.
The benefits of selecting the ‘right’ managing agent:
– The developer doesn’t incur the costs and time associated with dealing with property management.
– There is one point of contact for any issue raised.
– Provides residents with continuity after the completion of the project.
– Protects the developer’s good reputation.
All administration and management responsibilities for cleaners, gardeners, repairs and so on may be untaken by the managing agent as soon as the development is handed over. The agent may subsequently arrange and administer buildings and other insurance policies, including engineering and Directors and Officers liability.
Furthermore, by careful management, “void” or “empty days” costs, which are usually paid by the Developer, may be significantly reduced or eliminated.
It is possible to provide accurate financial forecasting with just the aid of a legal plan. Utilising knowledge of similar sized developments and facilities greatly assist a managing agent when drafting the budget. This is vitally important as, if the budget is too high there may be problems at the sale stage and if too low, there may be insufficient funds to pay for necessary services on the development.
Some developments are aimed at attracting first time buyers. In addition, more new build properties are being purchased by investors for buy-to-let. Therefore the level of the service charge is of vital importance. The managing agent may work closely with Developers to ensure the service charge is set at a level that they are happy to bring to market, while providing adequate funds to ensure quality management.