Client Focus: Residents Take The Reins at Broadclose

Becoming a director at Broadclose Management Company was slightly unexpected end to 2019 for John Vanstone.

As a homeowner on the Broadclose development in North Cornwall, Vanstone hadn’t intended to get involved with the administrative side of the estate. However, that changed during the AGM in the autumn of 2019, which underlined widespread frustrations with the property company managing Broadclose at the time.

“The AGM wasn’t good” says John, “I felt unheard, but I was challenged to become a director if I was so unhappy it!” And so, he did exactly that, alongside fellow homeowners Christina Tielenburg and Andrew McFadden.

It had been apparent the estate had been underfunded for a while, and a combination of debts and irregular payments had contributed to issues with cash flow. Cutting ties with the property management company bought an immediate cost benefit, and also meant that the ‘onerous’ responsibilities of collecting service charge and administering accounts were now on the directors’ shoulders.

They turned to Simpkins Edwards for support, who had previously acted for Broadclose for several years before the specialist management company had come on board.

Jo Tope, partner at the Simkins Edwards Holsworthy office, has helped to streamline their processes, including dealing with their debt left by the previous management company – who were said to have no persistence to resolve the issue.

“Jo has been very, very good,” says John, “She is proactive and has managed to clear almost all the outstanding debt.”

Alongside this the team at Simpkins Edwards has moved one of the housing associations to monthly invoicing to help improve cash flow. As well as this they also send quarterly management accounts, which John and the other directors find particularly useful.

“Jo provides us with the information we need as a company. It’s well explained – she doesn’t just send the accounts; she sends detailed notes.”

These notes show how costs and income are fluctuating, as well as highlighting any matters of interest and concern, giving a much clearer picture.

Working with Simpkins Edwards also provides the transparency that had been lacking previously. The company is essentially a not-for-profit, existing to cover the costs of the estate that all the properties benefit from. As directors, they appreciate the oversight and advice Simpkins Edwards offers, and this gives them the confidence that they are meeting their obligations as directors, while also allowing them some distance from the finances.

“Everything is easy to deal with,” says John, “Simpkins Edwards takes care of the time-consuming elements of the accounts, and have set up processes to liaise with third parties, such as the solicitors”

With a much tighter rein on expenses and a better understanding of the financial situation, previous problems such as overspending, accruing debt and depletion of reserves have been brought under control. Broadclose is able to plan for maintenance more effectively and have a strategy for managing the costs of the estate going forwards.

John finishes to say “I like the communication from Jo, she’s very responsive, and we’ve never had to chase – I think that’s unusual!”