How does a Property Management company manage contractors?
Property Management companies are responsible for appointing and managing contractors.
When dealing with reactive repairs and maintenance, a property manager will not only diagnose what’s required, but will then gain approvals for costs and liaise with various contractors from electricians to gas engineers and plumbers.
Will they comply with health and safety?
All businesses have a legal duty to comply with health and safety laws. It’s therefore important that when looking for the best quotation for their Client Landlord, the Property Manager will also only appoint qualified and insured contractors to carry out the work. This, not only ensure proper management of the property, but more importantly, the safety of the tenants in occupation when the works are carried out.
At PIIM Property, to demonstrate compliance with the law and to ensure our responsibility as Letting Agent are met, we request and record all valid documentation from Professional Memberships to contractor certification.
Training and Accreditation Certificates
These types of documents usually expire after a year or 2 as training programmes and accreditation change, so it’s imperative they are checked and updated on a regular basis.
Electrical safety in property
All registered electricians in England work to BS7671 safety standard and these contractors will issue safety certificates confirming their work has been designed, inspected and tested in line with the standard.
As a Landlord, you must fulfil your Health & Safety responsibilities. Appointing an accredited, registered electricians mean you are protected if an incident occurs. They must be registered in a Government-approved scheme, such as NAPIT or NICEIC, ensuring they have necessary training and skills to carry out the work and public liability insurance.
A Property Manager will record their membership number and expiry date from their registration certificate. Most schemed audit members regularly to ensure continued certification is only awarded to qualified contractors.
As most Landlords are now aware, the Electrical Safety Standards in the Private Rented Sector Regulations 2020 came into effect in full from 1st April 2021 and certification is required every 5 years for rental properties.
Gas Safety in property
By law, a Property Manager must appoint engineer approved by HSE for gas safety checks and the repair and maintenance of gas appliances. Gas Safe Register if the UK’s official registration body and engineer’s will have a Gas Safe ID card showing their licence number, expiry date and the specific types of gas work they are trained to do. ID cards and licences are renewed yearly.
Any gas-related incident is serious so ensuring contractor has the right level of skill is really important. A Property Manager should record a copy of the Gas Safe ID Card appointed and verify work categories on their ID.
Employer’s Liability Insurance
This insurance provides businesses with protection against employees’ compensation claims, resulting from illness or injury sustained during their employment. Business must carry employers liability insurance unless exempted under the Employers’ Liability (Compulsory Insurance) Act 1969.
The Health and Safety Executive (HSE) enforces the law and can check insurance is with an approved insurer for at least £5 Million. A fine for non-compliance is up to £2500 for any day without suitable insurances. The certificate must be displayed or refusing to let them see it can also result in a fine up-to £1000
A Property Manager will request and retain a copy of the insurance certificates of suppliers as part of their management process.
Public Indemnity Insurance
This offers protection for a business against allegations of professional negligence. It includes legal defence costs and damages awarded to claimants.
Public Liability Insurance
This offers protection against claims for liability in respect of accidental bodily injury to 3rd parties, or damage to 3rd parties property caused by its business activities.
If a property manager (knowingly or unknowingly) appoints a contractor whose certifications and insurances have lapsed and their work causes an incident which then causes damage or injury to anyone on-site, the property manager could be liable, leading to fines and criminal prosecution if incident is deemed severe enough to warrant that level of punishment. This is also true if fail to meet health and safety regulations and an incident occurs.
As ARLA Propertymark member, our extensive and comprehensive training covers legislation and we also must have necessary insurance in place.
Is your residential property being managed correctly? Are you looking to change your Property Manager? Have you asked the right questions?