Service Charges: The mechanism for adopting tenant focused tech

The property industry is beginning to acknowledge the benefits that certain technology can bring but it isn’t always sure how and when to adopt it. This has become apparent in recent months where ‘PropTech’ conversations have shifted away from the hype and pomp onto much more serious discussions about adoption.

For some the answer is a robust and systematic structural change alongside new strategic budgets designed specifically to fund technology solutions. However, for those who work in smaller firms or possibly sit further away from the big decision makers the answer is less clear. This is particularly apparent for younger professionals who are more likely to see the advantage of tech but do not feel like they are in a position to embrace it. The answer is to not just rely on high level decisions but to also identify the practical steps that can be taken now so that a higher level of service can be delivered to clients sooner.

One part of the industry which is capable of embracing technology right now is property management which coincidently needs it more than ever. Property management certainly needs to undergo a radical structural change but space-as-a-service is already placing fresh demands on a property managers desk.
Thankfully an individual property manager does have the ability to affect positive change when they are managing a property with a service charge budget. A service charge will contain costs for services that directly benefit the tenants which the landlord has had to pay for in the first instance. The use of the service charge is regulated by the RICS, and rightfully so, but we shouldn’t dismiss its use to fund more modern services. With appropriate communication and transparency tenants may agree to contribute towards an appropriate technology solution which benefits them. Consequently the service charge could be a way to enable a tech driven space-as-a-service offering. Property managers are therefore in a quite fortunate position where they can procure new tech solutions with a relative agility.