Crises in the property sector often show up unexpectedly – and they can cause a huge amount of chaos when they do. Be it a legal battle, a financial fallout or angry tenants – crisis management is a high-risk affair, and getting it wrong can destroy your brand’s reputation and bottom line.
For this reason (and many more), a sturdy crisis communication strategy is an essential lifeline for real estate businesses. In this blog, we discuss the common problems the property sector faces and reveal how a carefully crafted plan with an expert PR agency can turn a disaster into a growth opportunity that keeps bad press at bay—and can even improve your reputation in the process.
Understanding potential crises in the property sector
Legal crises
Legal issues can be particularly disruptive because they don’t just impact a single aspect of your development; they could bring the entire project to a hard stop. The list of legal landmines is endless, including planning violations, environmental regulations, and breaches of contract. And there are a huge number of stakeholders that could potentially become hostile for a host of reasons. Unexpected legal action can destroy your funds, time and reputation – as a courtroom debate or poorly handled case can quickly become the source of a viral story.
Financial crises
The stakes are high in property development, with often multi-million-pound deals on the table. If financial backing fails or if economic instability hits it can have a domino effect as developers can’t pay contractors, projects are driven to a halt and potential buyers back out. This can put all future developments at risk, as investors’ confidence in your brand’s stability can waiver.
Construction delays
It’s not rare to see projects stuck in the construction phase for years on end. While some delays are unavoidable (such as those that crop up due to safety issues), they can still wreak havoc on your brand’s reputation. Trust can quickly start to crumble if buyers and tenants begin to question whether the job will ever be finished.
Sour customer relations
If buyers and tenants feel neglected, disputes can easily snowball. If the issues that arise aren’t handled efficiently, they can grow and quickly become public. Disgruntled parties can now instantly take to social media to rant, leave negative reviews, or even protest against your company, tarnishing your brand and deterring future buyers.
The role of a crisis communication PR agency
Crises in the property sector are unpredictable and always show up at the worst time. That’s why it’s essential to have a PR crisis communication agency available as a lifeline for when you’re knee-deep in a media storm. They manage every aspect of your public relations during a crisis from media management to internal communications with clear, consistent, and carefully crafted messaging for all of your key audiences. Their job is to keep you out of negative headlines, keep your stakeholders informed and protect your reputation whilst the dust settles.
Agencies with expertise in the property sector have a significant advantage as they have experience with the complexities of construction delays and striking the balance of managing buyers’ expectations with the reality of disruptive issues and set-backs. They understand the nuances of real estate and can speak the language of investors when financial crises hit. You can get a lot out of hiring a specialist agency, but here are a few of the key benefits:
Quick response times – Speed is everything when a crisis hits, and an expert agency knows that swift action is the key to controlling the narrative before others do. Proactivity and transparency are crucial here – the goal is to get ahead of the story and frame it in the best possible light.
Tailored messaging – Messages need to be hand-crafted for the right audience, be it the media, investors, or the public. This is not a one-size-fits-all job, and the agency needs to understand the unique pain points of each audience so that they can be properly addressed.
Media relations experience – Property PR agencies know how to manage journalists and control the story. They can give you specialist media training to ensure all of your PR is polished, well thought out and in alignment with your legal strategy.
Stakeholder management – A real estate-focused PR agency will help you manage your wide variety of stakeholders, keeping contractors in the loop, reassuring investors and providing regular clear communication. Everyone needs to feel heard and respected, and a PR agency will help you tailor each message to satisfy different parties involved.
Developing a crisis communication strategy
You hope you’ll never need to use it, but you’ll be glad a crisis strategy is in place if disaster strikes. Let’s walk through the essential steps of a watertight crisis plan:
Step 1: Risk assessment
You need to understand your business’s weak spots in order to address them. To do this, you’ll need to conduct a thorough risk assessment and prioritise potential issues based on their likelihood and possible impact on your business—this could range from construction delays to tenant complaints. The aim is to be ahead of the crisis, with answers prepared so you’re not starting from scratch and feeling blindsided if the worst-case scenario occurs.
Step 2: Blueprints to the plan
The next step is mapping your key stakeholders and tailoring messages for each group. How you speak to a financial investor is worlds apart compared to how you’d talk to the media. You should also make a plan detailing who needs to be informed and, crucially, when. Pre-drafting holding statements for each audience based on different scenarios means you’ll have a framework in place for when an issue arises. You’ll also need to assign clear communication roles, monitor social media and organise internal comms, and appoint a media spokesperson. This makes the process much smoother when the pressure is on.
Step 3: Crisis simulation
This is an essential part of any excellent crisis management plan. Running regular drills ensures that all teams know how to respond quickly, and you’re less likely to freeze in the instance of a real crisis.
Step 4: Brand sentiment monitoring
Platforms like Brandwatch or Hootsuite are crucial tools that will allow you to keep your ear to the ground and track public sentiment towards your brand in real time so you can adjust your messaging as the situation evolves. It’s vital to implement feedback loops long-term so that you can assess what went right (or wrong) and how you can improve your response next time. Continuous improvement should always be a priority, especially given the turbulence and unpredictability of the property sector where another crisis can be just around the corner.
The long-term benefits of crisis-proofing your property brand
Crisis-proofing your property brand isn’t just about surviving an existing crisis, it’s about building a robust long-term reputation that shields you from future incidents. When correctly planned and executed, an excellent crisis management strategy can turn a disaster into a golden opportunity for growth, and the way you handle a crisis can make or break your reputation. If handled well, it can improve your brand’s trustworthiness and credibility. And if your brand is seen as transparent, quick to act and responsible you can experience a significant boost in public perception.
A remarkable example of this is the Tylenol Crisis in 1982, where Johnson & Johnson experienced a potential brand-ending crisis when several people died after consuming cyanide-laced Tylenol capsules. They quickly pulled their products from the shelves and openly communicated with the public on the issue, saving lives and earning them praise for their commitment to safety and transparency. Their brand reputation emerged stronger than ever following this.
Handling a construction delay, a planning permission dispute, or even a safety incident with the same level of responsibility and transparency can transform a potential PR nightmare into a trust-building moment. Investors, tenants, and buyers are more likely to stick with a brand that can handle tough situations gracefully. When trust is tested during a crisis, the key to long-term success is how quickly you bounce back. By addressing the delay head-on, keeping stakeholders informed and setting clear expectations for moving forward, you build resilience – and a resilient brand can face setbacks and still come out ahead. The lessons you learn during one crisis prepare you for the next, ensuring you’re never caught off guard. This is where feedback loops come in – by regularly updating your crisis communication plans based on past experiences, you ensure that your brand stays one step ahead.
When your key stakeholders see that you’ve got a plan in place which is ready for anything, they’re more likely to stick around long-term. Trust is the currency of the property sector, and a well-handled crisis can build trust faster than any marketing campaign ever could. The financial impact of handling a crisis efficiently versus carelessly is also significant. Having a plan in place significantly reduces running up a hefty bill you didn’t budget for because of a spiralling crisis.
Securing success in the property sector
Crisis communication isn’t just about surviving disasters; it’s about guaranteeing your brand’s future. Proactively developing a sturdy strategy and partnering with a specialised and experienced PR agency means that you can protect your reputation and secure long-term resilience.
Don’t wait – review and enhance your crisis management today to stay ahead of the game.
