CMA call for improvements in the residential leasehold sector
Recent findings by the Competition & Markets Authority (CMA) have revealed that, while the housing market seems to be going well, issues have occurred between property managers and leaseholders in the residential leasehold sector.
A study was, in fact, carried out within the property management sector by CMA, which conducted surveys and collected complaints of leaseholders. Such comments revolved around the low quality service provided by property managers, high charges, unnecessary or excessive works, lack of transparency and communication, unpredicted costs, confusing procedures for consultation of major works, vertical integration between property managers and contractors or between property managers and freeholders, substandard service, low attention to complaints and inefficient compensation schemes.
As a solution to this, the CMA has given advice in order to raise awareness about leaseholders’ obligations, improve disclosure, transparency and communication between property managers and leaseholders, facilitate leaseholders’ access to appropriate forms of redress.
Leaseholders in the residential leasehold sector, should be very aware of their responsibilities and of property management procedures. Concurrently, transparency is key to guaranteeing trust between all parties and allowing leaseholders’ interests to be heard. Thus, better strategies to solve disputes would also be considered, if any issue occurred.
Legislative amendments have also been suggested by the CMA, thus improving the rights of consultation in regards to major works. The existing Right to Manage legislation should also be expanded, so that leaseholders would have the possibility to call the landlord upon re-tendering the property management of their block.
However, harshening the regulation of property managers is not the CMA’s intention. The market has in fact been fruitful for many and where the Right of Manage has been applied, leaseholders have been highly satisfied.
The current legislation does provide extensive protection for many leaseholders, and property managers have seemed to be willing to improve it and tackle the issues that have been raised so far.
Here at Arthuronline, we have managed to create a tool that is a solution in itself to the aforementioned problems. Our online property management software is a platform that significantly helps property managers or landlords in fulfilling their duties.
Simultaneously, it increases transparency between property managers, landlords and leaseholders by providing them with effective communication and organisational tools, all through the use of one platform. Arthur helps everybody involved in the renting process carry out their jobs while reducing the risk of mistakes, negligence and misunderstandings.
As showed by the CMA’s study, the poor service offered by property managers and the leaseholders’ lack of satisfaction were due mostly to the quality of individual managers and their relationships with leaseholders. Leaseholders perceived some property managers as more incompetent and less professional than others. More specifically, according to the study, the highest rate of discontent occurred in cases of disputes that had been protracted for quite a while, with a consequent lack of trust between the property manager and the leaseholder.
The report by CMA stressed the correlation between the poor performances of property managers and the ‘emotional’ impact they had on leaseholders, as such issues were affecting their homes and, thus, a part of their private lives.
On the same note, not only does Arthur guarantees landlords, property managers and leaseholders a greater level of organisation. It also helps leaseholders feel considered and reassured, while giving them an understanding of the procedures of property management and their duties towards property managers or landlords.
Arthur, through the use of mobile and online technology, allows leaseholders to access all the information they could possibly need from anywhere, at any time. Similarly, thanks to Arthur they can quickly inform the landlord or property manager about urgent issues, should they have any. They would be also likely to receive a prompt answer, thanks to Arthur’s efficiency in optimising communication.
Ultimately, whether you are a landlord, property manager, agent or leaseholder, Arthuronline can help prevent and solve your problems and help improve th eissues surrounding the residential leasehold sector