Why multi-owned housing owners are dissatisfied with the service provided by their management companies in New Zealand

Abstract

Purpose

The purpose of paper is to investigate the dissatisfaction and what specifically prompts multi-owned housing owners to change their body corporate management provider. Globally there has been a substantial growth reported in the number of residents living in multi-owned housing in recent years. There is increasing evidence that residents in these developments are experiencing dissatisfaction and frustration especially with the service received from their body corporate management company.

Design/methodology/approach

The paper includes a review of both the body corporate literature and customer switching literature which serves to inform the research. The investigation takes the form of a qualitative study comprising eight in-depth one-to-one interviews with residential body corporate owners who have recently switched to an alternative body corporate management provider.

Findings

The dissatisfaction experienced by body corporate owners leading them to change management companies bears a close similarity to the retail banking industry. The interviews record highly emotive responses from interviewees and the desire for an improved quality of service and better value for money from their service provider. These findings allow a deeper understanding of the outcome of studies that have been carried out previously in England and New Zealand.

Practical implications

The findings will assist directors of body corporate companies, property management and real-estate companies to understand the needs and wants of their clients and may also benefit property developers in their selection of a body corporate management company and legislators in providing a suitable legal framework.

Originality/value

This paper provides in-depth insights into switching behaviour within the context of body corporate management companies which has not before been published within academic journals.

Citation

Levy, D. and Sim, Q.-H. (2014), "Why multi-owned housing owners are dissatisfied with the service provided by their management companies in New Zealand", International Journal of Housing Markets and Analysis, Vol. 7 No. 3, pp. 397-416. https://doi.org/10.1108/IJHMA-03-2013-0020