What is the Landlord Role?
It’s not often I get out and about to visit our Members so it’s always a pleasure when I do and I recently had the pleasure of visiting a couple of Members in North London and it was good to catch up and talk tenant management (yes, my conversation is that boring!).
One issue did crop up and that was how much the landlord can dictate the way in which a TMO operates and how much freedom the TMO has in the way it delivers services, employees staff, chooses contractors etc. and it is a theme that comes up quite often. To put it simply the answer is that the landlord can’t determine your rates of pay or employment contracts. You don’t have to mirror the landlords pay structure or terms of employment although a number of TMOs choose to do so. Of course you have to comply with employment legislation and should treat your employees fairly (the consequences of not doing so may see you involved in disputes and the employment tribunals) but you can pay your staff differently. You don’t have to align pay rises with local government and you can seek to retain staff through additional benefits (e.g. bonuses).
One TMO I know were quite open that they pay their cleaners more than the council cleaning contractor because “if they’re good we want to keep them”. That’s not to say that such benefits are uncontrolled. Of course you should have a clear, evidence based system for the award of benefits and they must be approved by the TMO Board but, the argument I recently heard put forward, that bonuses were not permitted because TMOs receive ‘public money’ is flawed as councils can and do have performance related pay elements (bonuses) as well as other non-salary payments that are used as a means to retain staff.
This also crops up when local audit teams visit TMOs and suggest (insist?) that TMOs should ‘test the market’ to achieve value for money from their repair contractors. If they mean asking small, local contractors used by TMOs over many years – because they turn up quickly, do the job asked of them to a high standard and to the satisfaction of residents – to complete a lengthy Schedule of Rates then they clearly don’t know how to run an effective and efficient service! It’s a little out of date but the audit team in Hackney and I produced a guide to help TMOs when audit come calling and the audit team were really helpful in their approach.
The allowances a TMO receives are based on a clear formula which means you should get the same funding that the in-house teams get to deliver the same service. How you achieve this can (and should) be different from the landlord. You should be monitored by how meet the standards the landlord sets not by the means you use to achieve them.
Yes you should deliver an effective service. Yes, you should exercise control over how that service is delivered. Yes, you should ensure value for money. Yes, you should meet the needs and expectations of residents. No, you don’t have to do it the same way as your landlord.







We have received news that the Ministry for Housing, Communities and Local Government (MHCLG) are launching a new Fund “…designed to improve social housing residents’ experiences of their homes and landlord’s services.”