Managing Agent Tenders – Asking the right questions.
In 2024, we at SAY, have been working on approximately 3 tenders a month. There is a trusted and proven process that we undertake to ensure our clients select the best possible management option for their scheme.
We have been very excited by the recent increase in new developments and that the selection of Managing Agents has started early in the process. Developers are seeing the benefit of engaging with Agents early and inviting them to be part of the setup of the development.
The tenders that we run for these opportunities are an important part of our set up service.
As we are well rooted in the detailed design stages, we can understand what the requirements of the site will be as it emerges into steady state. It is imperative therefore that the right Managing Agent is selected to manage the developer’s vision and the selection process for this Agent should start as soon as possible.
Every Estate is unique, and every Managing Agents proposition and skill set is different. We are lucky to have such good working relationships with the leading Managing Agents in the industry so we can talk to our clients confidently about the people that will be delivering the service to their community, and where the operational skills are suited.
“Our priority is to ensure that the appointed Managing Agent is working with you, as well as for you.”
Debra Yudolph, Founder and CEO of SAY Property adds:
If an Estate is up and running, we would usually be asked to review the Managing Agents’ performance when an issue has arisen or there are complaints from Leaseholders. Our first task is to understand more about the scheme and why the issues have arisen.
The first question we always ask is “is a tender the right thing to do?” This may seem like an odd question to ask, but part of our role is to ensure that we are advising on the best outcome for the residents. We understand that service charges are increasing and that costs are a challenge, and Managing Agents are not always to blame, especially if they can demonstrate that they are balancing the books.
We have often found that the breakdown in relationships has come because of communication. Poor communication and often too much communication can make it difficult for Leaseholders to understand what is being presented. The format that they receive their demands is also a challenge and as a result, we investigate the customer journey to understand more about what the residents experience has been through analysis of all of the key touch points.
In addition, and as part of the pre-Tender Audit process (or Service Charge Health Check as we now refer to it), we can establish if the service charge accounts have been managed, contracts have been procured effectively, debt is under control and that the Agent has acted compliantly in the management of the Block and/or Estate. We are looking for how the appointed Managing Agent is delivering the ‘brilliant basics’ and how this is being passed on to their Leaseholders.
At the start of any tender process, we would identify the long list of Agents that we think would be suitable for the specific challenge. The documentation is bespoke to the scheme and we ask the right questions at the Invitation to Tender stage.
By the time we interview the short-listed Managing Agents for the role, we are confident that the cross section presenting will be able to deliver the required service. The key to Agents winning these tenders is demonstrating how you will perform in the future, not just by rolling off evidence of what you’ve done somewhere else.
In a recent instruction, we listened carefully to the issues that had arisen and provided an action plan for how to make changes. The relationships across the Estate were strained and it was clearly because expectations were not being managed and communications were left unanswered.
This all stemmed from the initial instruction where the Managing Agent was not given clarity on the service they were expected to deliver, the Leaseholders were disappointed that their needs were not being met and our client was caught in the middle.
We tailored a solution that worked for all parties and suggested ongoing reviews and targets to ensure that improvements are measurable and shared with the Residents through the publishing of KPIs and setting regular check ins with the Community, which included surgeries and formal resident meetings.
We have found that this is quite typical in that there can sometimes be a gulf in the expectation that Agents may be required to deliver, versus the reality of what they have been asked to do. We have seen an increasing demand for our ongoing management services.
This starts with agreeing the terms for the Property Management Agreement and extend to providing a regular reporting structure so that Landlords and Leaseholders are kept up to date throughout the appointment and performance is monitored.