A Managing Agent that is Motivated to Tackle your Most Pressing Issues
Realty have a successful, tried and tested reputation in regenerating developments.
We are well versed in the challenges that complex developments can encounter, with an excellent proven track record at resolving many long standing issues, such as; periods of neglect, significant arrears, lack of proactive management and communication from the previous agent, and major works resulting from Building Safety Act, Fire Risk Assessment and Health & Safety matters.
Our aim is to enhance the experience of the end customer and to create a positive journey to regeneration that provides our customers and clients with reassurance, guidance, and professional clear action plans, so that customers feel safe in the comfort of their well-managed buildings, and to ensure the client and customer assets are protected for many years to come.
Many of our positive results have been achieved at large, complex developments, where previous agents have failed, and where we aren’t just proving our reputation, but also building trust with client’s whom may have had negative experiences. In some cases, projects we have undertaken have been of high value and of critical importance for the running of our client’s building, and the end result has not only regenerated the building/development and re-invigorated the residents; but also in turn, increased property values.
Regeneration is no small task, so Realty only commit to a small number of regeneration projects each year, and we look to work with clients and customers who have a real appetite to see positive change, whom are committed to moving forward positively to the benefit of their building/development, and whom are willing to invest the time and funds required, working alongside Realty as their agent, to see the building/project reach it’s end goal. We see this as challenging but greatly rewarding work.
Case 1 – Building Safety Fund Application & Significant Savings on Insurance Costs
Realty were appointed to manage a prestigious, high profile estate that comprises of 271 apartments, and 22 commercial premises in 2021 that is split across 4 blocks, alongside external communal areas which are shared by additional blocks and hotel premises, and include a Grade II listed Market Wall.
Rather uniquely complex in its legal set-up, the Estate is divided and maintained by two Resident Management Companies, one of which is responsible for four of the blocks, and the other which manages and maintains the external communal grounds and Market Wall shared by all blocks and commercial entities; each of whom selected Realty as there agent following the tender process.
Upon handover to Realty, it was clear that the buildings and wider estate had suffered a period of neglect with many routine maintenance issues requiring immediate attention. Resident’s were frustrated with the situation under the previous agents tenure, and it became apparent that many pressing matters had not been dealt with for some time, with no engagement with the residents, therefore creating a distrust between the residents and their previously appointed agent.
The client similarly did not feel supported, and were becoming concerned with the lack of progress of major issues, with little to no information provided that would support them in making decisions, or in communicating with the residents.
Realty’s approach was to immediately improve the communication channels between all parties; to re-tender all unsatisfactory services; and to provide the client with solutions to the pressing and major matters, before formulating an action plan for all outstanding matters that was supported by the client’s approval.
During the handover process Realty uncovered that funds had been misallocated between the management companies without the client’s knowledge, with large amounts of funds outstanding requiring collection, and therefore a full financial auditing investigation was undertaken by our Finance Director and her team to ensure that funds were allocated correctly, and collected as per the terms of the respective leases, with a strong focus on credit controlling all outstanding aged debt.
In addition, Realty were quickly required to recruit new site staff including an Estate Manager and Estate Operative to ensure liaison between management, residents, and wider estate was improved; alongside an overhaul of all staff facilities, so that staff felt a sense of pride in the place where they worked, and so that they felt supported and valued by their employer.
Several of the buildings had unfortunately suffered from historic water ingress and fire safety issues, and Realty fully appraised the situation within each block immediately and began work on progressing a solution for each building. One building in particular had a faltering application to the Building Safety Fund which Realty successfully revived with little notice, and has now seen the block receive funding.
One of the largest achievements following this positive progress is that Realty negotiated a reduction of circa £70,000 in the buildings insurance premium at the first renewal.
As a result, the client is now in a much better position to move forward, arrears have been reduced and cashflow significantly improved; our involvement and communications have raised spirits at the development and resulted in greater positive engagement throughout the estate, and Realty are now working with the client on the next stage of our plans which is to enhance standards further and to provide further improvements to the estate which include our project to revive and protect the Grade II listed market wall.
The Client commented:
“We appointed Realty to take over from an underperforming incumbent following a competitive selection process. As well as our desire to simply get the basics right, the urgent issue that needed careful management was the emerging fallout of cladding and fire safety issues affecting 3 out of 4 of our blocks, one of which included a costly waking watch and fire alarm upgrade.
Immediately upon taking over, Daniel and his team identified further fundamental and high impact problems which also had to be corrected.
I’m very pleased to say that as a result of Realty’s appointment we have an approved building safety fund application, reductions in insurance premiums, and a new site manager who clearly cares about his work and is well regarded by residents.
In addition to a turnaround of our anxiety inducing big ticket items, we now have confidence and transparency in everyday management, billing and accounting. And, we are starting to see some tangible improvements to the estate and buildings which have been economically implemented and well received by residents. Daniel’s openness, passion and integrity are exactly what we needed. He’s even managed to convert some of our more vocal leaseholders!”
Case 2 – Building Handed Over with an Active Fire Enforcement Notice!
Realty took on a 231 unit apartment development in Salford, Manchester in 2018 situated within a popular residential area not far from the desirable amenities, bars and restaurants located in Spinningfields and Deansgate.
The development should have been one of the most popular places to reside in Manchester, but due to a period of neglect, it was clear that the capital and rental values at the development were starting to suffer. At the point of inception we found the development to be in a state of deterioration. The development had little funds, needed a significant amount of TLC, and had Fire Service Enforcement Notices in place.
The Residents and Directors in particular were worried as they had no reassurance nor received any correspondence as to the steps that were being taken to put right the period of neglect that their homes had suffered before our appointment.
Realty’s approach was to fully assess the information provided at the point of handover from the outgoing agent and to engage with the Directors immediately, outlining the full situation. The initial shock from the Directors was apparent, and as a result, meant that we would really have to work hard to build a trust with the leaseholders based on their previous experiences of Managing Agents.
It was agreed that the best course of action would be to engage with all affected leaseholders from the outset, to ensure the community of residents were able to fully express their thoughts, views and opinions and so that we could the formulate a positive action plan that all leaseholders would value. More importantly, we needed to ensure that the action plan was realistic and would continue to build trust between ourselves, the Directors and the leaseholders, while tackling the most pressing issues, while also keeping the budget restraints in mind.
Within nine months of action from Realty the enforcement notices were removed, cash flow improved within the development, and the fire safety works had been delivered on budget.
One leaseholder commented: “After years of appalling neglect of our residential block by the previous management company, Realty has made a dramatic improvement in a very short period of time. The buildings were declared a fire hazard at the changeover and these have been put right with a minimum of disruption and without excessive charges being passed on to leaseholders. As a result the buildings are now clean, safe, and very well presented.
You hear stories of companies putting on a good “show” in order to ingratiate themselves with flat owners, only to exploit them after things have settled. This, though rare, can never be discounted. However, having had extensive dealings with their team I can say without hesitation that this will not happen. They have been highly professional, courteous and responsive to issues which have arisen. A pleasure to work with after what went before.”
Case 3 – Preserving a Historic Gem
Realty were approach to manage one of Manchester’s hidden Art Deco gems in the early 2010’s. A development of 102 apartments situated within 1930’s buildings of such beauty and architectural importance that they are listed despite their 20th Century age.
The buildings had suffered a significant period of neglect, and this landmark development had been allowed to fall into a state of serious dilapidation. The key issues were numerous leaks to the unusually designed deco-style flat roofs, a failing communal heating and hot water supply, alongside numerous aesthetic and general maintenance issues. Capital and rental values of the apartments had plummeted with apartments selling for under £100,000 and rental properties sitting empty, and there was general discontent amongst the leaseholders and residents.
Realty’s approach was to immediately engage with the leaseholders and formulate a short and medium term plan that resolved the key issues whilst bringing about greatly improved resident’ satisfaction and increases in property values that greatly outstripped the required project costs.
The first stage of the project went ahead quickly following well supported statutory consultation and listed building consent, and this saw the blocks re-roofed with a technically advanced solution that completely eradicated all leaks.
The communal ‘energy centres that provide heat and hot water each apartment were replaced with efficient and reliable modern systems with long life-spans.
New and highly proactive site-based staff were appointed and this brought about even greater resident satisfaction through attentive service and raised standards of maintenance and contractor management.
The second stage included full restoration of the stunning curved and tiled entrances, redecoration of the internal communal areas including refurbishment of the original etched glazing, deco marbled finishes, walnut doors, and polished brass and glazed balustrades.
Although there was variation due to the apportionment of the service charges, on average each leaseholder was levied circa £10,000 which was supported by an overwhelming majority.
Apartments are now on the market at £202,000 with some approaching £260,000 (an increase of £160,000!), demonstrating that our well planned strategy not only resolved long standing problems but also brought about a considerable capital return.
The works and the development as a whole have attracted great interest in the locality since Realty’s involvement, including a feature in an architectural publication, and there is currently a significant demand to acquire property at the development, hence the sharp price increases. This is partly due to the tangible increases in capital value and rental income seen and predicted, but mainly because this development is now seen as a prestigious, unique and well maintained place to live. Just as it once was in it’s heyday in the 1930’s.
