Building Safety in Residential Block Management: Risk, Reputation, Revenue and Reward

Building Safety was a key discussion point at this year’s MRI Ascend client conference, which took place in April 2024. MRI were joined by the chief executive of ARL and representatives from Principle Estate Management and Centrick. As the panel discussion amongst industry professionals and peers took place, what was clear from the insights shared is the fact that the sector still has a lot of catching up to do.   

Here, we highlight some of the main talking points from the Ascend Conference Building Safety session.   

Integrating safety into a company’s culture 

Building safety is more than just a checklist or a regulatory requirement; done properly, it should be a core part of the company’s culture, instilled top-down by leadership and thereby embedded into the everyday operations and ethos of the company. Safety should influence every decision and action, and when the whole company begins to think at this level, implementing a secure operational framework becomes easier. 

Risks of getting caught out 

Failing to prioritise building safety exposes managing agents and property owners to risk. These risks spans across corporate, reputational, and revenue impact.  

• Corporate Risks: It’s well documented by the regulators that non-compliance can lead to hefty fines and legal consequences, jeopardising the company’s financial stability. 

• Reputational Risks: Bad news travels fast, and incidents can quickly lead to negative PR, damaging trust, credibility and brand. 

• Revenue Risks: Assets without verifiable safety records can impact resale value in the eyes of potential investors.  

Turning safety into reward 

Prioritising building safety offers a valuable opportunity to enhance your brand. By demonstrating a commitment to safety, managing agents and property owners can reverse negative PR by positioning themselves at the forefront of responsible building management and sharing best practices.  

Overcoming data management hurdles  

Evidencing building safety is crucial but at the same time, it’s easier said than done. Managing agents must become custodians of data, ensuring it is accurately collected, maintained, and accessible. The process of sharing data securely with external stakeholders must also get easier to enhance transparency and coordination. This data needs to be made available through various channels and methods, ensuring it is accessible when needed. The use of APIs is increasingly important in this regard, facilitating data exchange and providing a single source of truth for all parties involved. 

Balancing capex and operational requirements 

Capital expenditure (Capex) planning should not overlook the operational requirements of real estate. Investing in safety measures may seem costly upfront, but it is a critical investment in the asset’s long-term value. If an investment upfront is not considered, considerable expenses due to the lack of safety investment may occur, in relation to accidents, legal fees, and property damage. 

Applying safety principles universally 

Why limit safety measures to buildings over 18 metres? The same safety principles should be applied to all buildings, regardless of height. Extending safety protocols to all buildings ensures comprehensive protection, peace of mind and all resident safety – not just those who live in buildings over 18 metres tall. 

A call to action for the industry 

The residential block management industry continues to navigate and step up to new building safety requirements. This is just the beginning.  

Since the MRI Ascend conference in April, we have experienced a change in government. The most recent announcements indicate a doubling-down on building and resident safety measures with an announced extension of the Decent Homes Standard and Awaab’s Law into the private rented sector. The new bill will outline “legal expectations about the timeframe”, in which private landlords will have to adhere to. 

By prioritising safety as part of company culture, leveraging data effectively, and ensuring the appropriate level of resource and investment, the industry can make strides toward creating safer living environments for everyone.   

The path to improved safety requires commitment, investment, and a willingness to embrace change, but the rewards—in terms of reputation, revenue, and resident satisfaction—are well worth the effort.