The issue of housing and homes is highly emotive and when something goes wrong people feel strongly that issues should be resolved fairly, appropriately and quickly.

With the Government’s focus firmly fixed on creating a culture of consumer protection in the housing market, the role that managing agents play as part of that process and how complaints are handled is very important.

The Property Ombudsman (TPO) helps to resolve complaints between consumers and property agents when things go wrong. However, despite being at the center of complaint handling, it is apparent that the industry sometimes struggles with how to approach complaint handling in a consistent way.  

With the Government’s focus firmly fixed on creating a culture of consumer protection in the housing market, the role that managing agents play as part of that process and how complaints are handled is very important.

The Property Ombudsman (TPO) helps to resolve complaints between consumers and property agents when things go wrong. However, despite being at the center of complaint handling, it is apparent that the industry sometimes struggles with how to approach complaint handling in a consistent way.  

In 2017, TPO received 1,038 enquiries relating to Residential Leasehold Management, the majority of which TPO’s customer service team offered advice or guidance for, or signposted complainants to the right place. 127 complaints were taken forward.  TPO is driving up standards and providing guidance to the industry about the need to develop a culture of effective complaint handling.

TPO provides reassurance to consumers and the industry alike that there is an alternative to costly and lengthy court proceedings that can be relied on to provide timely, fair and reasonable remedies in this important sector.

In this article, Katrine Sporle, the Property Ombudsman, discusses the why and how of complaint handling and gives advice and insights on:

• The reputational value of effective complaint handling
• How to develop a culture of excellence in customer care
• How to respond to complaints

What is a complaint?

“When a customer feels strongly enough that his or her expectations have not been met, he or she may make a complaint. A complaint is when a customer brings a problem to the attention of the organisation and expects some redress, probably over and above simply supplying the original product or service that was the cause of the complaint” – Institute of Customer Service

“An expression of dissatisfaction made to a member about an organisation within its jurisdiction, related to that organisation’s products, services or staff, or the complaints-handling process itself, where a response or resolution is explicitly or implicitly expected” – Ombudsman Association – Service Standards Framework

You cannot decide for yourself what a complaint is

A complaint is in the eyes of the service user, so you must deal with whatever issue an individual comes to you with. 

However, research shows that only 9%-37% of unhappy customers will make a complaint to your firm. The remainder will think:

• Your firm is not interested in their issues
• That it’s too much time and trouble to pursue
• They do not know who to speak to, where to go or what to do

The reputational value of effective complaint handling

So why should your organisation prioritise and improve in -house complaint handling? There are many recognised benefits, such as:

• Most customers would recommend a company to their friends if a complaint had been resolved efficiently.
  
• Seven out of 10 complaining customers will do business with you again if you can resolve the complaint to their satisfaction.
  
• On average a satisfied complainer will tell five people about their experience and the majority of customers would pay more for excellent service.

We have seen direct examples of this, where satisfied customers will tell other people of their experience, helping to generate return business. Conversely, a typically dissatisfied customer will tell eight to ten people about their experience and four out of five (80%) customers would spread the word if a complaint has been handled badly.  So, if you consider this, and the fact that only one in three customer-facing staff are actually trained to deal with angry customers, you can start to understand the significant competitive and reputational advantages in ensuring staff are fully trained to deal with consumer complaints.

Customers don’t expect you to be perfect, but they do expect you to handle their complaint.

How to develop a culture of excellence in customer care

A company will only gain the benefits that complaints bring if they put in place the five golden rules of good complaint handling:

1. Having a clear strategic plan on good complaint handling starts with implementing a flexible, welcoming and open policy on complaints.
2. Train your staff and management in complaints handling.
3. Give complaints priority and authority.
4. Ensure complaints can be processed from all sources.
5. Set up processes to log and analyse all complaints.

TPO Code

The Property Ombudsman is the largest government approved redress scheme within its sector and the only redress scheme to operate codes of practice which have been approved by the Chartered Trading Standards Institute. The TPO Codes of Practice cover the rules of complaint handling stating that the foundation of being able to deal with complaints in the right way starts with having a clear and accessible complaint procedure. TPO membership requires every member agent to have a complaints procedure in place for consumers and our Codes have dedicated sections setting out the different steps required of any agent’s in-house complaint procedure.

In order to ensure customers complain to the right person in the right way, you should ensure your website has a copy of your complaint procedure in an accessible place where consumers are likely to look for it. Add a dedicated page to your website giving guidance on complaints and include a specific phone line or email address. Finally, and most importantly, provide a copy of your complaint process to customers at the outset of your relationship.

How to respond to complaints

There are basic rules which are very important and you should go through these steps every time you receive a complaint.

• Thank the customer for complaining
  
• Put yourself in the place of the customer
  
• Start with the view that the customer has a valid point, not that they are trying to rip you off or cause problems
  
• Get all the facts first
  
• Offer a resolution before offering a free gift, compensation or a discount
  
• Correct the mistake
  
• Minimise reasons for complaints

• Always respond
  
• Listen to your staff
  
• Lead by example
  
• Be polite and professional
  
• Use formal names
  
• Communicate constantly
  
• Learn from every complaint

Of course, sometimes agents are faced with a particularly difficult complaint, and the basic rules are simply not enough to defuse the situation. It is important to remain polite and professional at all times and try to focus on the problem not the person.  It can be easy to take things personally and get drawn into making confrontational statements but remember that you are the professional. 

If nothing seems to work and the complainant becomes consistently abusive or threatening, it is not unreasonable to state that you will only correspond in writing. If the inappropriate behaviour continues, explain why you no longer consider it appropriate to engage on the matter and advise them of their right to escalate the matter to whichever redress scheme you are a member.

Free, impartial and independent service, helping to resolve disputes between Consumers and Property Agents for more than 27 years – www.tpos.co.uk.