Case Study – Corunna Court Residential Block Management in Wrexham
Project Objective: Review spending and value for money
Location: Corunna Court, Wrexham
We were approached by directors of Corunna Court who had experienced poor service from a large UK block management agent who was both RICS and ARMA affiliated. With 89 apartments at the development, the management company was being run at a loss, had very poor housekeeping and residents had trouble selling and letting apartments. We were able to fully demonstrate how our attentive management style and culture would benefit the new client and the lessees who had experiences of our services on other local developments. This provided them with the confidence they needed to progress with the change of block managing agent.
Initially we suggested increasing the number of directors to allow for one director per block. This would allow constant feedback to Paramount regarding the individual blocks via that director, which would allow us to react more quickly should any issues arise.
After a full financial review of expenditure, insurance claims, outstanding invoices and the maintenance programme, we sat down with directors and put forward a plan which would exceed their expectations and still come in at the same annual service charge they were already paying.
With a plan in place the target was to meet the commitments agreed with the directors and come in on budget.
Paramount carried out a full audit of the last 12 months costs. All lease and budget needs were reviewed along with the resident’s requirements.
Paramount were able to demonstrate to directors that considerable savings were achievable providing immediate savings of 25% against the existing and previous budgets.
The main areas or reduction were:
• Building Insurance saving – Year 1 – 20%
• Electricity reduced by 16%
• Reserve fund allocation 15% of budget (without increasing demands)
• Proactive property maintenance and contractor management 25%
Results, Expectations and Savings:
Paramount audited the development and provided alternate and cost-effective solutions to reduce costs and improve efficiency and cash flow.
Building Insurance was proactively managed to reduce unnecessary claims.
A full external painting plan allowed a contractor to work using quality traditional standards, two days per week during the summer. The total cost was only 30% of the figure previously charged by the existing block management company, who were using contractors from Birmingham who commuted daily (arriving at 10 and finishing at 2).
As part of our Health & Safety directive we updated, to LED, all the internal lights and sensors together with replacing all (39) external bollard lights.
Day to day maintenance was introduced to ensure repairs were dealt with swiftly and good standards could be maintained whilst operating within budget.
All contracts were reviewed, with new contractors, suppliers and utilities companies chosen.
With Paramount’s proactive management and having an eye for detail has allowed for a healthy reserve fund allocation of 15% last year and 23% this year of the annual service charge budget without an increase in charges.
The development is a desirable place to live with high rental yields and strong sales. Ideally located in Wrexham, this is now a highly sought- after location.