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    Home » A Virtual Necessity: 2024 Is a Year for Digital Development in Property Management

    A Virtual Necessity: 2024 Is a Year for Digital Development in Property Management

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    By JB Leitch on January 8, 2024 Industry News, News

    Author: Gareth Rowlands, IT Director.

    Readers will be aware of the considerable attention that has been given to the increasing presence and penetration of AI technology in our personal and professional lives, along with the growth in prop-tech and the wider introduction of ever more enhanced management software and integrated platforms

    Given the considerable reforms and changes either recently introduced or pending amendment or assent, the role of technology in compliant and transparent property management has never been more apparent.

    Taking the new building safety regime as a prime example, there has been considerable attention given to the new requirements for gathering, managing and updating key building information along with the need to develop ongoing engagement strategies between property managers and residents. A common element is the need to develop systems and channels that can allow information resources to be stored and readily accessed online.

    Specifically, the new “golden thread” information is statutorily required to be kept up to date and, at different points throughout the lifecycle of the building, must be transferred to the relevant dutyholder. The completion certificate issued by the Building Safety Regulator forms part of the golden thread together with all the information which accompanied the application for the completion certificate. It is a statutory requirement that the golden thread information is held electronically; in the context of property due diligence, it may be most practical to require a seller to make this available to a buyer directly. A significant element of the golden thread concept is the Resident Engagement Strategy, which will become a mandatory requirement for high-rise residential buildings under the Building Safety Act. This strategy will focus on open and transparent communication with residents, emphasizing their safety responsibilities and management. The Building Safety Regulator will review, approve, and sign off on Resident Engagement Strategies when issuing building safety certificates.

    Further, recent proposals on leasehold reform and newly introduced regulations on insurance from the FCA, place further emphasis on the accessibility and visibility of information, and so for property managers, the question arises – are your information systems and information workflows prepared for both the requisite changes and the expectations of regulators, contractors, suppliers and leaseholders?

    It is a question that many developers and technology providers have already considered, with some introducing digital platforms and solutions to meet these operational challenges, specifically designed to assist both information curation and secure storage throughout a building’s lifecycle. Importantly, the concept of increased automation is also a benefit that is being incorporated to enable key information to be presented in a templated format that is consistent with the requirements of the regulator.

    However, as with any substantial report, it is only as satisfactory as the data which populates it. This raises another important question – what protocols, processes and channels are in place to adequately request, retrieve and review the information property managers and wider stakeholders require? What is the workflow that supports a comprehensive and secure digital management platform?

    A logical place to start is to ask “where are we now?” A review of your current databases, document records, files and level of digitization, along with the capabilities and limitations of your current digital systems internally and public facing channels such as websites and portals will identify the key gaps and development areas you may need to focus on as a priority. You may not need to reinvent the wheel – some of your approaches may be more than adequate, however an initial review may be a useful benchmark and prompt consideration of further efficiencies.

    The second question is “what do we need to do?” New regulations and application forms will set out the specific requirements that are to be made available or kept on file for ready access. It will be useful to list and categorise these requirements by the audience and purpose for which it is intended. This mapping exercise will be useful in beginning to outline the structure of future information management and distribution. Matching the requirements to your resources in a templated or tabulated way provides the architecture for development.

    Property managers will also ask “when do we need to achieve this?”

    Readers will be aware that it takes time for legislation to be enacted and to be supported by practical guidance and secondary legislation. Although certain schedules are in place, for building safety cases and reports for example, that does not mean that you can’t be prepared by asking the right questions now and providing yourself with sufficient lead time to scope, develop, test and modify your solutions for wider legislative requirements on the horizon.

    With these previous questions satisfied, the next point to consider will be “how do we achieve this?” The scope of requirements identified above will be the heart of your brief. You may be resourced to be able to develop internally by extending your existing system and web presence – or require the services of an external provider to support bespoke – and secure – design and implementation. Planning is key. Scoping the budgetary and technical impacts of digital service development on your current operations in terms of investment, transfer or potential disruption will mitigate operational risk and will provide indicators for the phases of technical transition. Developing working templates aligned to mandatory and publishable information requirements, listing data sources, frequency of updates required, format and content criteria, will support effective and ongoing workflow development. Ultimately, a key question will be how can digital solutions enable the requirements to be met automatically, accurately and efficiently. With greater administrative demands, automation and the ability for the end user to retrieve and filter information or to auto-populate documents and online pages in a prescribed or appropriate format may allow greater demands to be met without necessarily creating additional delay or cost. Although there is evident technical challenge to existing ways of working, there is also opportunity to adapt and improve.

    AI building safety Digital Development FCA golden thread industry news leasehold reform News Property Management
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    JB Leitch
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    We are market leading specialists in leasehold and property management law. Established over 25 years ago, our team delivers rapid results and unrivalled expertise in matters ranging from dispute resolution and complex litigation, to arrears recovery and non-contentious real estate work. Whatever the tenure and whether it is residential, mixed-use or commercial - if you manage it, we can help you.  J B Leitch | 0151 708 2250 | [email protected]

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