Amid discussions of legislative and regulatory changes, keeping up with these ever-changing topics are among the challenges faced by Directors of resident managed residential developments.
Here, property management company, FirstPort explains how instructing specialist support is vital to help residents to navigate the evolving landscape and the choices available to them.
Understanding the Changing Landscape
Regulatory changes in recent years – and indeed changes still to come – will no doubt give leaseholders greater opportunities to decide how their developments are managed. It is vital that those residents responsible for managing developments are supported to bring more meaningful, democratic choice to their fellow residents.
At FirstPort, we work with over 1,500 Resident Management Companies. To gain a better understanding of the company Directors and how they currently approach their roles, we recently conducted our second Resident Director Survey, which we believe to be the biggest ever proprietary research project undertaken with Resident Directors to date.
This report builds on last year’s findings, exploring the role of Directors and how this may evolve in the context of the new changes and challenges that 2022 will bring. It considers the growing responsibilities for Resident Directors, and what we as managing agents can do to best support them.
The new regulatory landscape will require Resident Directors to keep up to date with proposed changes to building safety regulations and leasehold reform, whilst identifying and responding to the choices and challenges presented.
Assessing Changes and Implications
Despite the apparent changes on the horizon, 88% of the Directors surveyed said they do not have a good understanding of the issues, and when asked about time allocated to their duties, half (50%) of all Directors spend the least amount of their time staying informed about regulation and legislation changes.
When asked their feelings towards the proposed changes, there is a mix of scepticism (14%), apprehension (12%) and intrigue (10%). However, many Directors feel it’s too early to say (41%) how they feel about these changes and the impact they will have on their development.
Directors of Resident Management Companies include a wide range of professional backgrounds. Of those surveyed, 21% of Directors have worked in the property industry, and almost half (48%) have no previous professional experience relevant to this role. For many Resident Directors, their relationship with a specialist management agent forms a significant part of their responsibilities. According to the survey, Directors spend the greatest proportion of their role liaising with their property manager (22%) and fellow Directors (18%) about management matters.
The Way Forward
Despite the potential changes on the horizon, many Directors appear undeterred by the altering landscape, with 59% expecting to remain in their role beyond the next three years.
Unsurprisingly, the changing conditions do not appeal to everyone, with 34% of those surveyed saying that were they to leave their role in the future, the time required to carry out their duties adequately would be the most likely reason to step down.
For Directors that are planning ahead, the topic of sustainability has become increasingly important to residents, who are now more aware of their environmental impact and conscious about finding opportunities to improve it.
More than one in 10 (12%) Directors say making their developments more sustainable is a big priority over the next 12 months with plans already in place, while a further 56% are currently investigating how they can reduce the environmental impact of their sites, with solutions such as EV charging points, wildflower planting, renewable energy and LED lighting among the improvements being explored.
As legislative and regulatory changes are confirmed and implemented, we want to see Resident Directors enjoy and flourish in their roles and it is important to work alongside them and support them to navigate new legislation and embrace new responsibilities, encouraging a proactive and positive outcome for all residents.
To read the report in full, visit www.firstport.co.uk/rds22
