Written by Paul Atkinson, Director of Client Services and Business Development at FirstPort.
The Government is making significant moves to give homeowners more control of their homes and the areas in which they live, so encouraging residents to get involved in the management of their development is more important than ever.
FirstPort works with over 1,000 resident-managed developments across the UK and has seen first-hand how a Resident Management Company (RMC) can add real value, if inducted in the right way. Paul Atkinson, Director of Client Services and Business Development shares his five-step approach for helping residents who are considering being involved in the RMC at the start of a development’s life have a positive experience.
Educate
It’s really important that residents have a full understanding of what they are signing up for from the outset. This involves helping homeowners understand resident management as a concept and the benefits as soon as possible, as well as explaining the role of a managing agent.
It’s also important that the practicalities of being a Resident Director are clearly laid out. A recent survey of over 200 Resident Directors by FirstPort showed that 57% did not fully understand their role when they took it on. For residents, being aware of the benefits of feeding into, and influencing, decisions about their home is often a real motivator. As well as the positives, it is important residents understand the consequences of not having an operational RMC to consider residents’ views and make decisions.
Engage
Our Resident Director Survey revealed that the biggest incentive to become a Director was a sense of pride in their development (70%), followed by a desire to support their neighbours (36%) and finding residents that this resonates with is really important to forming a successful RMC.
We find that often residents want to be involved in their community but may not know how to go about this. In addition, many of the Directors we work with already had other voluntary duties before they agreed to become a Director – such as board and committee members, school governors and charity trustees. These were all good candidates for the job, as it meant they already had a sense of the commitment they were being asked to make and were a natural fit for a Director role.
Involve
Getting interested residents involved as early as possible is key so that they can begin to contribute to how their development is run even before it’s handed over. That way, they feel involved, empowered, and motivated.
In our role as managing agent, we would encourage engaged homeowners to set up a committee (at this stage without decision-making powers) that allows for training on Resident Director responsibilities and familiarises them with management matters. The committee can act as a sounding board for the developer Directors and the managing agent as they manage the development, ensuring they feel part of key decisions. In time, the committee would assume full control from the developer, already aware of how to operate an RMC.
Support
Ensuring residents have the support and advice they need during the transitional period (before they actually assume responsibility from the developer) is key to the whole process, making the handover as smooth as possible for both the developer and the homeowners and setting the foundations for long-term success.
Our Resident Director Survey reveals that eight in ten (80%) Directors go to their managing agent as their first port of call when they need help in their role, so we know how important it is to have a suite of support materials and services available, as well as regular catch-ups. We can also arrange training specifically for new directors of resident management companies.
Handover
In reality, if steps one to four are handled well, a smooth handover to residents should just happen. A good managing agent will be there supporting every step of the way, with the end goal of ensuring that there is a bright future ahead for the development and its residents.
