Failure of previous managing agent to address maintenance issues that resulted in service charge arrears of £1.5 million, 50% lifts out of action (6 Lifts) and cessation services from contractors due to non-payment.
The homeowners had lost complete trust and confidence in any managing agent as a result of their experience.
When Broadoak were appointed there were service charge arrears of £1.5 million, 50% lifts out of action (6 Lifts) and cessation services from contractors due to non-payment. The homeowners had lost complete trust and confidence as a result of their experience.
The challenge was to overcome the stalemate, where contractors would not carry out services due to non-payment of their invoices and to collect service charge arrears, when residents could not see any services being carried out.
Broadoak implemented a strategy to reinstate services, to collect service charge funds and to regain trust and confidence of homeowners.
Broadoak had fortnightly meetings with contractors to agree a plan to reinstate services and to analyse and settle where appropriate outstanding invoices. All services, specifications and contracts were then reviewed for best value and delivery. This built trust with the contractors and agreement was reached so that no legal action would be taken by them for unpaid invoices and extended credit terms were agreed.
Full services were reinstated, and all lifts returned to action within the two months.
Broadoak on appointment entered into honest and transparent communication with homeowners (and Residents) on the situation and the strategy to reinstate services. This included regular meetings with the Resident representatives together with the service providers which was necessary to build trust and to enable the recovery of service charge arrears.
Service Charge Arrears
Once the position and strategy had been explained to homeowners Broadoak carried out robust credit control action to collect service charge arrears appointing solicitors when this became necessary. Within one year, the overall service charge debt had reduced by 85% (i.e. by £1,275,000).
Broadoak regained of all parties and built a strong working relationship with homeowners, contractors and the Client.
Broadoak has retained the management instruction for the development since 2010.