Management Company

Kenpo

Hi, I've recently heard the law has changed as regards Mgmt Companys, and residents having the right to change to a different company.

Does someone actually know the specifics of this change? Are you locked to a mgmt company for a certain period (or is this based on the specific contract you signed)?

Thanks

padser

What I would say you heard of is a SUGGESTION to change the law (from the law reform commission) to regulate charges of manamagment companies and to regulate the industry generally. There may also have been a suggestion to make changing easier.

At present the situation is as follows. Most complexes requiring a managment company have a 'company' set up to administer the propery. Generally the shareholders (owners) of the company are the owners of individual properties in the complex. This 'company' appoints a managment company to administer the property (cleaning, maintainance etc etc)

So in theory the group of tenants can change the managment whenever they feel like it (subject to the length of time that the contract has been signed for with the managment company).

In practice the developers appoint the managment company, and its very difficult to change the managment company while the developer is still present.

maidhc

Management company: This is a company owned by all the property owners in an estate/apartment block. This company owns the communal areas.

Management agent: The people hired to manage the communal areas for extortionate fees. The management company can hire and fire the management agents at will, or not bother with any and contract out the maintenance themselves.

Problems arise with management companies if the owners don't care about its administration. The biggest problem arises when the annual returns are not made and the company gets struck off. In this case the communal areas revert to the minister for finance until the High Court is petitioned to get the company reinstated.

mel123

So what if nobody paid their fees for the year, what would happen??

Nevyn

You can be sued for breach of contract.