Keeping up with legislative and regulatory changes are among the challenges faced by Directors of resident managed residential developments. For many, instructing specialist support remains vital, according to research by leading property management company, FirstPort.
FirstPort, which works with 1,300 Resident Management Companies, has conducted its second Resident Director Survey, believed 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 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.
Despite this, 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.
21% of Directors surveyed 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.
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.
Nigel Howell, Chief Executive at FirstPort said: “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.
“We want to see Resident Directors enjoy and flourish in their roles and we will do all we can to support them to navigate new legislation and embrace new responsibilities, encouraging a proactive and positive outcome for all our residents.”
To read the report in full, and find out more about FirstPort, visit www.firstport.co.uk/rds22
