Major Works: the Consultation Challenge

So what can you do to soften the blow?

Maintain an adequate Reserve Fund

It might mean significant annual contributions, but if it is based on a costed stock condition survey then at least when it’s time for the work the pain is significantly lessened.

Also check your leases. Are you managing it as a sinking fund when it’s a reserve? Reserves are easier to work with and less restrictive.

Communicate early and communicate often

The more notice you give of impending works the better. Ideally you should know what’s planned for the next five years and update your leaseholders each year.

Similarly, if something unexpected and costly comes up, let people know what’s happening asap. Don’t wait for the first Notice to go out. If you think the reserves can’t take the strain then explain the situation and increase contributions to the fund asap. Your leaseholders might not thank you at the time, but if you can avoid a big invoice to them at the end, it will save a lot of grief.

Improve your S20 consultation

The law is very prescriptive about what information goes into a notice. I would recommend Including a plain English letter, a set of FAQs and put the notice at the back of the pack so by the time the resident reads it they have a good idea what they are going to find.

Make sure your contractors have people as well as technical skills

The better the contractors can communicate with residents about what will happen and when, the more satisfied residents will be. If they can be tidy, polite and considerate as well even better.

Improve how you bill

The more residents can see of the cost breakdown for a major job the higher their confidence. If you’ve procured effectively you should be able to provide this and defend it with confidence. Too often leaseholders complain of a lack of transparency and clarity when they receive the demand.

It’s unlikely you’ll please everyone, but those who deal with residents as paying customers who may be significantly inconvenienced will fare much better than those who hide behind the terms of the lease and treat Section 20 as an inconvenient hurdle.