Kevin joined the Alexandre Boyes block management team back in 2015 and is a Property Manager with over 30 years experience in the property industry. Kevin is a member of the Institute of Residential Property Management (IRPM) and an Associate Member of The Royal Institution of Chartered Surveyors (RICS). In this interview Kevin talks about his career, the block management industry and where it is heading.
1, Tell us a little about your career journey – where did it start, why block management?
I came into the property industry back in 1984 starting out as a repairs clerk for a small company in Dartford. They were then bought out by one of the big insurance companies (when banks, building societies, insurance companies were acquiring estate agents all over the country). From there, I progressed to Lettings Co-Ordinator then Property Manager in residential block management, then Associate Director responsible for a team of 13 staff with a turnover in excess of £1M per annum. I stayed with the same company between 1984 to 2015. In 2015 I took the difficult decision to leave that company to get back to what I wanted to do, what I was good at, managing buildings. It’s the best decision I ever made!!!
2, During your career what have been your most valuable lessons?
To work hard but also have a good work/life balance. To communicate and to listen to what the client wants but at the same time, to provide concise, accurate advice. It’s not always what the client wants to hear but otherwise I would not be looking after their best interests and their assets.
3, You must have seen many changes in the industry – which had the greatest impact and why?
The Section 20 consultation legislation brought in under the the Landlord & Tenant Act in 1985. This was made statute to protect Lessees from Landlords who would undertake works to the building with no consultation with the flat owners. A good piece of legislation but it’s time the Government reviewed this again and in particular the £250 threshold (that is when any single leaseholder’s contribution will be £250 or above). A typical example is a block of 5 flats with any single item of repair limit set at £1,250 – it still needs to go through the consultation process which is not only extremely time consuming and can delay the works but is also at additional expense to the flat owners. The threshold is out of date particularly given this includes any vat sum, and the inflation in building material costs and tradesman’s rates.
4, What is on the horizon for the industry in 2023 and beyond?
More red tape. With more legislation on the horizon there will be further burdens put upon Managing Agents to implement the changes, and it may well see some agents stop offering block management services altogether. The industry is suffering with low staff morale, high staff turn-over and fewer skilled Property Managers coming through the ranks. A lot of well experienced, professional personnel who have been in the industry for many years are becoming disillusioned with current issues, stress levels, work/life balance and leaving the industry in their droves.
5, In 2022 the cost of building materials increased by 25% on average in the UK and continue to increase. How is this impacting the industry?
Massively. We are not only seeing increases in building material costs and the continued struggle that contractors have in sourcing materials at times but also Reinstatement Valuations are highlighting the fact that buildings are under insured. This can have a serious impact on current and future premiums. Contractors are now submitting quotes for works but emphasizing, in some cases, the prices will only remain firm for a period of 30 days whereas pre-Covid, quotes would remain firm for anything up to 6 months. The biggest hurdle we have with rising costs throughout the industry is explaining this to the client and the reasons why the service charges must increase too.
6, What are the crucial documents needed when managing your portfolio?
The Lease is often referred to as our bible. Any disputes or ambiguities in their wording needs the court or tribunal to decide upon otherwise, Managing Agents and our clients have to work to the letter and everything contained within it. I would also say the RICS codes of practice of which there are many, but the ‘Service charge residential management’ 3rd edition and their Client Money Handling codes in particular. Also the ARMA/IRPM codes. All the codes of practice are getting tighter and RICS ‘Service charge residential management’ 3rd edition is undergoing a major overhaul – this is a good thing for our profession to help reduce the number of rogue (cowboys) Managing Agents out there.
7, You have been an associate member of RICS for several years now, how important are professional memberships in this industry?
Very. Property Managers play a crucial role is helping Management Companies and Freeholders manage their responsibilities and obligations, but also their assets. The individual Property Managers gain much knowledge through on the job training, but the learning and time that goes into achieving membership is huge. Without this I cannot see how unscrupulous Management Agents are delivering a professional service. It also has the added massive advantage of understanding how to handle client money and fire, health, and safety risks. Alexandre Boyes in a member, and is regulated by RICS which provides our client money protection scheme. Something more and more clients are mindful of when choosing a Managing Agent. Nonetheless, there are still many Management Agents out there who do not have qualifications or professional memberships giving little by way of protection or peace of mind, yet RTMs and RMCs still use them on the promise of low fees presumably. Sadly, I’ve seen too often the aftermath and have taken over many blocks and estates which have been poorly managed and mishandled.
8, What should Freeholders, RTM and RMC look for when considering a new agent?
All of the above in terms of professional regulation of the firm, individual Property Manager’s professional membership, client money protection, professional indemnity insurance, which codes of practice the agent works within. Also, and this is really important, look for an agent who is not just professional but also approachable, has good listening qualities, is confident. At the end of the day, the client is trusting their Managing Agent to have their best interests at heart, manage their assets, and guide them through a huge amount of red tape and legislation. A good working relationship is paramount to ensure things work and the best results are achieved for everyone.
9, You must have managed an eclectic bag of estates and blocks over your 30 years in the industry. Do you have a few favourites?
There was a large estate I managed for over 30 years. I made a lot of close relationships with the residents, contractors, suppliers, and it was hard to say goodbye when I started with Alexandre Boyes. There was another one in Rochester that was developed on top of old war tunnels and featured in a tv documentary. My favourites now are probably those blocks in need of a lot of love and attention, a little run down and in need of regeneration. It’s great to see the buildings turn into something desirable.
10, Have you had any unusual or memorable on the job experiences?
I’ve had a lot of dramatic events. Fires in blocks; rocks thrown at me when on site; knife wielding individuals trying to cause harm; sadly, a fatality at an AGM but one of the most memorable experiences in my 30 plus years in the industry was meeting my partner who worked for another firm of Manging Agents. We are still going strong after 19 years and have a wonderful family and our dog.
