8 minute read
interview
INTERVIEW Opinion leSley DaviS talks to Jonathan Smith, Managing Seeing the BIG PICTURE director of one of the UK’s largest property managers, Trinity Estates
Jonathan Smith iS a relative newcomer to the leasehold sector. A professional background in accountancy brought him to property via insurance, contract cleaning and IT, where he worked for a range of mediumsized companies turning over between £15m - £60m per annum. “This gave me the benefit of being involved in the overall structure of companies and an insight into how they operate both within their own industry and thethe widerwider market,”market,” he he ex expl plains.ains.
Having worked briefly for Christie & Co, Jonathan’s first real exposure to the property industry was when he joined Trinity in 2004. Initially responsible for developing the accounting and operational functions - which soon expanded due to rapid growth he was appointed managing director in 2008. “I steadily became involved in all areas of the company and soon realised that residential management was very much a developing industry where we as a company could make a positive contribution and so could I by steering that company.” Trinity was very much in its infancy when Jonathan joined, with just over 3,000 units under management. Eight years later the company is managing 40,000 homes.
So to what does Jonathan attribute Trinity’s success to-date and what has driven its exponential growth? “Our success is down to hard work and actually listening to client requirements” he says. “We have made some big mistakes but we were quick to realise them, learn from them and prevent them happening again. We were also big enough to admit to those mistakes, which goes a long way in this market.” Trinity’s directors also realised that property management was their core business. “Unlike some others we took the commercial decision not to diversify into other disciplines and so have avoided distractions from the job of providing a professional management service,” Jonathan explains.
A recent change within the structure of the company has been for Trinity to merge a number and developer clients, fully tailored to life in the capital,” Jonathan explains. In some instances property management can be a and professional local service to clients. “Although we deliver a service to 600 sites across England and Wales and run a back office function from our head office in Hertfordshire, we actually operate seven regional business units which allow us to deliver our services at a local level,” says
Jonathan. This enables Trinity to employ local staff who operate from a home office and can source local contractors. Despite this focus on ‘localism’, there are instances when Trinity is able to use its
of sites previously managed by London-based property managers Chainbow into a Trinity Chainbow brand soon to be rebranded as ‘Trinity London’. The thinking behind this decision was that although Trinity has a very strong regional presence elsewhere in the country, there was a need to strengthen the client base in London. “This enables us to attract more proficient managers and provide a better service to our residents and developer clients, fully tailored to life numbers game and the more sites you have in a given area the more cost effective and responsive you can be, he says. “By acquiring the Chainbow sites we have a greater capacity to deliver an improved service more effectively.”
Trinity is one of the largest managing agents in the country but Jonathan Smith doesn’t regard it as operating like a big company and is keen to provide a friendly and professional local service to clients.
Jonathan Smith: property is our core business
consolidated position to great effect, particularly in the procurement of services. “Due to our size and annual spend with some contractors, we are able to negotiate preferred terms and rates which are to the benefit of both our service and our residents,” he says.
One of these benefits is the service provided by Ottimo, which is a facilities company established by the Trinity shareholders to complement and enhance the levels of service on offer. Ottimo works alongside Trinity in reviewing the work undertaken on site by contractors and looking for areas of improvement and cost savings. To-date, says Jonathan, this has worked “incredibly well” and levels of efficiency and reaction times have improved significantly.
With the number of households in the UK increasing there is an expectation that the leasehold sector is likely to expand in future. So what opportunity does this present for companies like Trinity? Jonathan outlines the company’s plans to continue working closely with existing developer clients and hopefully new ones too, with a view to providing a comprehensive service across the multitude of complexities which are now being encountered in new builds. “It is not just a case of managing bricks and mortar and people’s expectations anymore; managing agents now need to have a complete understanding of the innovative new methods used for sustainability such as CHP units and Photovoltaic systems,” says Jonathan. “More and more complex developments are being built and we have had to gear up our expertise to cater for them.”
Trinity employs a wide range of specialists including surveyors, solicitors and accountants but one of the most important teams is the handover team which works with the client months before Trinity takes management of a scheme to ensure that everything is in place. Jonathan explains that in order to offer an exemplary service, it is vital that his property managers develop a full and thorough understanding of what is to be managed. They are also able to offer advice during the build with regard to fit-forpurpose equipment. “This has been of great benefit to Trinity and its clients for a number of years now,” he says.
Jonathan believes that one of the most important aspects of a property manager’s role is to build up a relationship with clients that engenders trust. “There is a great deal of mistrust throughout the industry and especially among residents who believe that managing agents are making huge sums of money at their expense. In reality some agents still are but the larger professional companies who take much of the flack are not. It is perceived that agents receive money from contractors for works or commission on insurance or charge unreasonable management fees.” The truth,
according to Jonathan, is that some earn from contractors, some earn from insurance and some do simply overcharge. He believes that what is now needed in the industry are clear auditable guidelines which protect leaseholders but also allow agents to operate a professional, successful business.
“We need to ask questions and find solutions to the difficult issues. If an agent has a fee earning arrangement with a supplier under a bulk buying contract and is providing the most efficient service at the most beneficial cost to the residents, is it right? At what level do we deem the earnings to be reasonable and how do we determine that the service is the most efficient and beneficial to the residents?” he asks.
Jonathan is working closely with other large agents and with ARMA to find a solution to this and many of the other contentious issues that plague the leasehold
Who are TriniTy esTaTes? There is an expectation that the leasehold sector is likely to expand in future
Trinity Estates was established in 2000 by four shareholders who saw a gap in the residential market for a management company that was able to offer a professional management service both to developers and their purchasers. The founders all had complementary skills and several years experience with other firms. They brought together the four main disciplines of a property management business: finance, new business, management and legal. Within two years the company was managing 3,000 units with another 5,000 committed.
Today, Trinity is possibly the largest privately owned residential agent in England and Wales employing 140 staff.
The company now manages 40,000 units over 600 sites with another 13,000 units committed to management on completion. Sites range in size from 10 to 1,200 units and are managed by locally-based estate managers who live no more than 30 miles from their farthest site. This means that an efficient support and management service can be provided. These managers are supported by a regional manager and surveyor.
The main supporting functions of accountants, solicitors and customer service are based in Trinity’s head office in Hemel Hempstead but each member of staff is equipped with the latest communication technology to allow open dialogue between offices. Formerlya keen runner, afteraninjury Jonathanhas nowtaken up cyclinginhis sparetime.alwayslookingforachallenge, heand collegueangus Cooper recently tookonthethreepeaks–Bennevis,scafell PikeandMountsnowdon–cyclingthe whole538mileroutetoraisemoneyfor Neuroblastoma.ifanyonewouldliketomake adonationforthisveryworthycause,goto: http://uk.virginmoneygiving.com/team/ nevis2snowdon
market. “We are all fully aware of the common issues and we are all determined to push for stronger legislation to stamp out malpractice and work toward a licenceto-trade system,” he explains. “Legislation needs to be imposed but it needs to be imposed correctly. With representation from both leaseholders and agents we should be able to find a workable solution. This will eradicate a lot of the mistrust and perception of unscrupulous dealing,” he adds.
Ultimately Jonathan would like to see managing agents communicate better with leaseholders so that customers understand the industry is doing its best to deliver the service they require within the constraints applied to agents. The property management industry also needs to work on setting up a carefully planned training programme leading to a recognised qualification specific to the sector. ●
JoNaThaN smiTh
is managing director of Trinity Estates Tel 0845 345 1584 Email jonathan.smith@trinityestates.com Web www.trinityestates.com
