From the President
Power to the PM
Management of property means different things to different people.
It could mean the fund management of a portfolio of investment properties or the asset management of buildings. It could mean the day-to-day management of a local authority’s properties or it could mean dealing with the property assets of a corporate business.
Surveyors usually think of property management as the routine servicing of commercial properties: collecting rent, calculating service charges, monitoring leases and liaising with tenants.
Investment agents and fund managers might have once considered this a ‘Cinderella’ role, but in turbulent economic times knowing your tenants and retaining your income has assumed even more importance.
If commercial property management might have been a ‘Cinderella’ then, for some, residential block management has seemed like an ‘Ugly Sister’. Flat owners suspect that service and management charges are loaded in the landlord’s favour and do not see management as skilled professional work.
In my experience, cheap, dumbed down conveyancing, often promoted by mortgage providers, has led to real problems.
No one explains what being a leaseholder will mean: that there needs to be a significant maintenance budget; that there are regulations to be complied with; that you will be a shareholder and perhaps need to become a director of the company owning the freehold of the building.
Greater professional involvement in residential management and better informed leaseholders can improve the situation.
Apart from the top end of the market and special situations, such as the Calthorpe and Bournville Estates in Birmingham, routine residential management has not been an appealing area of work.
Over time, I expect the AssocRICS qualification to make its mark in providing added professional support for residential property managers and a recognised qualification for those at the sharp end of this very important market sector.
MAX CROFTS FRICS, RICS PRESIDENT
www.rics.org/presidentsblog
