Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Property Manager Fined £500 Over Repair Dispute Failings
The Property Ombudsman has ordered property management firm QWZ to pay £500 in compensation to a leaseholder after failures in contractor oversight and complaint handling during a flooring repair dispute.
The case involved a leaseholder, identified as Sally, who raised concerns about flooring installed by a contractor appointed by QWZ after a leak damaged her apartment.
What went wrong
Sally reported that the replacement flooring was defective, poorly finished and mismatched in colour, with exposed nails, uneven surfaces and hazardous materials left in the property. After repeated attempts to contact QWZ without resolution, she arranged and paid for remedial works herself, then sought reimbursement and compensation for distress and inconvenience.
QWZ stated that the original damage resulted from a leak between flats and that replacement flooring had been arranged through the service charge account. The company maintained the flooring was not defective and argued the issue related only to appearance rather than any need for replacement.
Ombudsman findings
The Property Ombudsman found that once QWZ chose to manage the flooring replacement, it was required to exercise reasonable care. Due to a lack of records, the Ombudsman was not satisfied that QWZ had properly monitored the contractor's work, maintained repair records or taken appropriate steps to investigate the leaseholder's concerns.
Complaint handling also came under scrutiny. Sally submitted a formal complaint in July 2025 and escalated it through QWZ's internal procedure. Although an initial response was issued, the Ombudsman found no evidence that the complaint progressed through required stages or that a final viewpoint letter was provided.
Compensation awarded
The Ombudsman gave particular weight to the fact that the issues affected a family home with two young children and remained unresolved for an extended period. Sally's health and safety concerns were not given serious consideration, nor were steps taken to reassure her about the safety of the flooring.
The complaint was partially upheld regarding communications and handling of the repair, and fully upheld on complaint handling issues. The Ombudsman awarded £500 compensation for avoidable aggravation, distress and inconvenience caused by QWZ's service failings over a prolonged period. The cost of the flooring Sally paid for was not awarded, as repair liability between Sally and her landlord was outside the scope of the review.
Implications for agents and property managers
The ruling shows that property management companies face financial and reputational consequences when they fail to maintain adequate records, oversee contractors properly or follow complaint procedures. Compliance with basic obligations may not be sufficient if customer service standards are inadequate.
For landlords and investors, the case underlines the importance of selecting property management companies with sound complaint handling procedures and contractor oversight systems. Poor communication and inadequate follow-through can escalate minor issues into formal disputes requiring ombudsman intervention.
All names in the case were changed to maintain anonymity.
Source: PropertyWire