Peter McCabe, Director at Clear Building Management, gives us a run down of he and his team’s most frequently asked question.
When we speak to Directors looking for a new managing agent for their development, there are a number of questions that are always high on the agenda. One of these is naturally around cost and how much leaseholders will have to pay for our property management services.
For many however, this question moves quite swiftly to focus on financial transparency – namely how we can guarantee there will be no hidden costs.
This is particularly the case for Directors, who may have been scarred by managing agents that have low-balled on the cost per unit price, only to charge additional costs throughout the year or – and this is a particular bugbear of ours! – taking commission from sub-contractors and arranging services such as insurance.
For most of us, it’s important to have certainty over our expenditure. Living costs are creeping up and we need to be able to budget. For leaseholders, the cost of their property management services is an important element of their household costs.
A lack of transparency in this area makes it difficult for leaseholders and RMC directors to understand the real cost of the management of their building.
At Clear Building Management we believe that the managing agent’s total fee should be published, fair and transparent. And this is entirely possible when the managing agent provides an ‘open book’ service charge accounting approach to leaseholders.
This means:
- No surprise or hidden extras
- No over-riders, commissions or kickbacks
- No linked sub-contractors
It also means setting the management fee at the correct level and not trying to secure a new block on a falsely low rate that then needs to be inflated – whether by foul means or fair!
By setting the management fee at an appropriate and sustainable level, we can offer truly open and honest pricing and guarantee Directors that there will be no hidden costs with no need to ‘prop up’ the fee with additional costs at the leaseholders’ expense.
Additionally, Directors also like to be reassured that the service charge monies are safe and protected. At Clear we use individual client accounts and publish the statements for full transparency.
Clear Building Management was founded on the principles of transparency, value and quality to enable us to deliver professional residential development management in a better, more inclusive way; ensuring customers and their needs are at the heart of its operations.
Through our open and transparent accounting and reporting, we provide efficient, cost-effective property management services and we never forget that we are looking after your home and your investment.
It’s an approach that is working; we have had a very busy start to the year with two new blocks joining the Clear family on 1st February. One of these blocks is 15 stories tall and has a history of past problems. The Directors chose Clear Building Management after being recommended to us for our approach and transparent management; we have now agreed a plan to turn the building around and give leaseholders a say in its future all whilst holding the service charge at the existing level.
