Robert Soning, COO of Londonewcastle comments:

Q. What do you look for in a residential management company and what could be learnt from commercial?

“Buyer expectations for new build developments are very high – much higher than they were 5 years ago and so we need a residential management company that understands and can meet these challenges.

There are more mixed use developments – so the management company need to understand, integrate and coordinate with the different uses on site – an ‘Estate’ management understanding and experience – for example, leisure uses on site bring more people and later hours and this must be managed effectively to work properly over the long term.

We need businesses who can provide 24 hour onsite concierge and associated ‘lifestyle management’ services e.g. restaurant bookings, theatre tickets, private dining, health and fitness services. It’s not just about the back end – the front end is key and we need luxury hotel levels of customer service and management. Front office staffing is key:

• the right people selection and recruitment process • training • motivating • managing – e.g. secret shopping, customer satisfaction surveys, leaseholder feedback meetings.”

Q. Future developments – what facilities will they have and how will they be managed?

“More sophisticated services will be offered in large developments not just a screening room and a gym, but private dining rooms, ‘club’ rooms which are more multi-functional and day to night, for business meeting and leisure use – like a private members club in effect.

We may also see leisure / entertainment uses that adjoin the residential becoming more open and integrated; for example, a café, restaurant or spa that share the same lobby space as the residential – which will need to be considered and managed. These facilities will bring more people over longer hours so responsiveness needs to excellent.”

Q. Is there a skills gap and training issue in the market?

“Yes there is. We need sophisticated organisations with skills and expertise of both residential and commercial management.”

Q. Can we learn from overseas or commercial managers?

“From overseas definitely. London – and England – is still not a service industry led mentality like it is in America and we can still learn a lot from them.”

Q. Is a low service charge a false economy?

“ Yes, it rings alarm bells that service levels may be low and inadequate; for example, maintenance, sinking funds, management, refuse. As buildings get more complex and the facilities expand, there will be a new minimum level of charge.”

Q. How do you see the role of social housing and build to rent organisations?

“The important thing is that social and private housing is separated at the design stage of new build projects, but day to day management needs to ensure coordination and communication between private and social managers.”

Q. How important is service charge when marketing properties to overseas purchasers?

“It is very important to show value. But overseas buyers are used to high-rise, managed buildings so there is a level of expectation. Again it depends on the in price of the apartments, but too low a service charge can be damaging as it risks rising concerns over inferior service levels - especially long term maintenance.”

Q. Do mixed use buildings provide an opportunity for consolidation in the market – e.g. could commercial managers step into the residential space and/or vice versa?

“Absolutely – there is no choice. London is now very sophisticated and you can’t have one without the other – mixed use developments are the norm. I think larger commercial managing agents will start doing residential management – either by adding their own offering or buying/ merging with residential management companies – or vice versa.”

Q. What different challenges (and benefits) do mixed use projects have?

“Mixed use is more challenging – the challenges are wider integration and maintenance issues. You need experience and a sensitivity to the issues.”

Q. What impact will mixed use schemes have on future property values?

“They could have a positive impact on values, if (a) they are run well and (b) the tenant mix is managed sensitively / controlled by the developer at the outset to ensure the right fit between each class and the relative price point.”

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