When property management goes wrong, what happens next matters

But professional standards are not demonstrated by qualifications alone. They are also revealed in how a managing agent responds when a block is already facing a serious problem.

Glide has supported a number of resident management companies after their previous management arrangements broke down. These were not blocks simply looking for a different level of service. Some had been left with little or no access to their funds, unpaid contractors, outstanding work and directors who suddenly had to make difficult decisions without knowing what information they could rely upon.

Rosie-May Flamson, Operations Director at Glide Property Management, says the first priority in these circumstances must be to create stability.

“When a block finds itself in this position, the directors and leaseholders are understandably worried. They may not know what has been paid, what remains outstanding or whether planned work can continue. They need someone to work through the facts with them and help them understand what happens next.”

That process can involve rebuilding budgets, establishing the block’s immediate liabilities, speaking to contractors and holding additional meetings so residents understand the position. In some cases, Glide has also helped resident management companies pursue claims through their directors’ and officers’ insurance to recover money.

The work is rarely straightforward. Every development has its own leases, finances, contracts and outstanding obligations. There may also be urgent maintenance or safety work that cannot simply be placed on hold while the financial position is resolved.

To give affected blocks room to recover, Glide has previously suspended its management and company secretarial fees, as well as charges for maintenance services, until funds became available. It has also worked with directors to identify which commitments needed immediate attention and which could be reconsidered as part of a longer-term recovery plan.

This experience has reinforced Glide’s view that the sector needs clearer and more consistent professional standards. When a block is placed under pressure, the quality of the advice it receives can make a significant difference to how quickly it regains control.

That requires a sound understanding of leasehold law, financial management and the practical realities of running a residential development. It also requires judgement. Directors need honest advice about what can be resolved immediately, what may take longer and where specialist legal or insurance support is required.

For Glide, developing that knowledge does not begin and end with its property managers. Employees across the business, including those in supporting roles, are encouraged to undertake qualifications through The Property Institute. The company offers both apprenticeship and examination routes, alongside regular professional development.

Glide recently ran a six-week programme with a specialist leasehold solicitor for employees at every level of the business. The purpose was to give everyone the same grounding in the legal principles behind their work, while allowing more experienced colleagues to refresh knowledge gained earlier in their careers.

“Leasehold management continues to change,” Rosie-May explains. “Someone may have many years of experience and excellent professional qualifications, but legislation and case law do not stand still. We have to keep learning and make sure that knowledge reaches every part of the business.”

Glide also holds regular sessions led by contractors and other specialists, with recent training covering the Building Safety Act, asbestos and condensation. This helps ensure employees understand how changing requirements and emerging issues apply to the buildings they manage and the advice they provide.

Regulation cannot guarantee that blocks will never encounter poor management or financial difficulty. It can, however, establish clearer expectations for the people and businesses entrusted with managing them. Appropriate qualifications, continuing development and effective protection of client money should be regarded as essential foundations of the role.

Just as importantly, the sector should judge professionalism by the way managing agents behave when their expertise is most needed.

“When something has gone badly wrong, it is not the time to make the situation more difficult or add to people’s concerns,” Rosie-May says. “It is the time to listen, establish what has happened and offer practical support. The real measure of a managing agent is not simply how it operates when everything is running smoothly, but how it helps people find a way forward when it is not.”

Rob Poole, Group Block Management Director, LRG