POD Management Discuss: The Importance of Transparency

This week, the POD Management team takes a closer look at the term ‘transparency’. For us, it is a core value which we aim to reflect in everything we do. Many property managing agents will refer to themselves as ‘transparent’, but when it comes to fees, what does this really mean?

At POD, transparency in fees means communicating honestly with all clients, clearly demonstrating value, and managing realistic expectations. Unfortunately, in cases where consumers struggle to define value, some within the industry choose to exploit that gap through hidden fees, vague pricing models and even kickback commissions. However, the best companies lead with integrity, not opaqueness.

Here, we explore three key areas: fee transparency for residents, the concept of value for money, and the role of transparency in winning new business.

Fee Transparency for Residents

Ensuring that residents know exactly what they’re paying for and why is important to us. Often, those living in a development expect a breakdown of charges, and rightfully so. After all, they are paying for a service, and they should understand what they are being charged for and where their money goes.

At POD, we believe in clear communication. If there is a necessary cost, we explain why it exists and how it’s calculated, and it’s this level of transparency that strengthens relationships. Whether it’s maintenance, security, insurance, or communal amenities, we ensure that every charge is justified and communicated in a way that fosters trust.

That said, there are times when residents and clients may find it challenging to confront the realities of costs. While our role is to provide clear and honest breakdowns of costs, we also understand that these numbers may not always align with residents' expectations. Thus, we often find ourselves in the difficult position of managing these expectations. This is where transparency is most crucial, ensuring that residents understand not only the numbers but also the reasons behind them.

Value for Money: Balancing Costs and Expectations

The question of whether fees represent value is subjective. Some expect top-tier service at minimal cost, while others appreciate the intricate work involved in maintaining a well-managed property, and their single biggest asset. The key is understanding that value does not always mean the cheapest option - it is more about getting what you pay for, without hidden costs.

At POD management, we ensure that every fee we charge is justifiable, and contributes to delivering a high-quality service. But the industry has its challenges. Some companies offer seemingly low fees upfront, only to include hefty hidden charges later. This creates a misconception that property management should cost less than it does.

A fundamental part of our approach is helping clients appreciate the costs involved. It’s not just about the simple maintenance of communal areas, for example, our services cover health and safety compliance, insurance, strategic planning, expert advice, offering long-term value. We pride ourselves on ensuring that every cost is accounted for and explained.

There is a lot of work that goes on behind the scenes in order to meet and exceed customer expectations. Residents aren’t always aware of the ongoings because a reputable property management company aims to cause as little disruption as possible to day-to-day life. However, fundamental tasks and processes are constantly being carried out - as we always say, there is always more than meets the eye! 

It should be mentioned that if residents are ever unsure of what they’re paying for, a financial breakdown can be requested from their property management company. This will clarify any expenditure, as well as highlighting things they may not have been aware of, for example, necessary health and safety precautions.

For more on resident service charge fees and value for money, take a look at our recent blog.

Transparency and Integrity in Winning New Business

When it comes to winning new business, we believe that fee transparency can be a differentiating factor. At POD Management, we are completely transparent about the fees we charge and give potential clients a comprehensive view up front. This means we don’t have any hidden fees or charges that will appear further down the line. Our breakdown of costs is realistic and factors in any additional expenses.

The property management industry is extremely competitive and therefore, some companies will provide a quote with minimal charges listed to appear at the lower end of the price scale. However, pricing that is on the lower end of the competitive market rate may incur hidden extras and additional costs further down the line.

Unfortunately, many managing agents won’t volunteer pricing information in the tender process unless directly requested. We like to make it clear from the outset and believe that being upfront about all costs sets a standard for integrity in the industry.

Want to learn more about our take on tenders and questions to ask a prospective managing agent? Read our recent piece here.

A Committed and Credible Managing Agent

In our opinion, fee transparency is about fostering trust, ensuring accountability, and delivering genuine value. Where hidden fees and vague pricing structures are all too common in our industry, POD remains committed to an open and honest approach.

In essence, transparency sets the foundation for good property management. By being upfront about fees, clearly explaining service charges, and prioritising honesty in new business opportunities, we set a standard that benefits both residents and clients alike.

If you are looking to appoint a new property management company to assist in the smooth running of your development, the POD management team can help you today:

●       Fill out our new business form

●       Email us at relationships@podmanagement.co.uk

●       Call us on 0333 577 6656    

We look forward to hearing from you!