Setting up Property Management Company

Manic...

Hi all

Looking for a bit of advice

I currently own and am living in an apartment complex in Dublin. I am on the board of Directors and we employ a property management agent as our secretary to look after the complex.

Myself and another Director are trying to get rid of the property management agent and setup our own property management company.

There is no fixed term that our current property agent are required to work for us so we can rid of them tomorrow.

My question is can we as owners/shareholders setup a Property Management company and do this work ourselves?
Do we need to resign as Directors? Is it a Directors decision to allow us to do this or is there the need for an EGM?

I'm assuming we resign as Directors setup our own company and then our company becomes the new secretary

Can someone help me out here with advice

Hope it all makes sense and that I've covered everything

Thanks
Dave

is_that_so

Yes you can do it . The company I am part of was set up when we arrived but you will need to register and set up a limited company "without share capital"

Once that is done you need to do the following( from my experience)

1. Set up accounts
2. Agree charges and services
3. Set a date for the AGM
4. Maintain accounts
5. Determine how you will set up a sinking fund ( a fund used to cover large capital expenditure without tapping the residents, it comes from the management fees)

AFAIK our company was set up by a solicitor. Other than that all we do is sign cheques and do our annual submissions to the CRO, through our accountant.

Cantab.

Manic... wrote:

Hi all

Looking for a bit of advice

I currently own and am living in an apartment complex in Dublin. I am on the board of Directors and we employ a property management agent as our secretary to look after the complex.

Myself and another Director are trying to get rid of the property management agent and setup our own property management company.

There is no fixed term that our current property agent are required to work for us so we can rid of them tomorrow.

My question is can we as owners/shareholders setup a Property Management company and do this work ourselves?
Do we need to resign as Directors? Is it a Directors decision to allow us to do this or is there the need for an EGM?

I'm assuming we resign as Directors setup our own company and then our company becomes the new secretary

Can someone help me out here with advice

Hope it all makes sense and that I've covered everything

Thanks
Dave

Sounds like there'd be a bit of politics involved here (i.e. pulling the wool over your neighbours' eyes).

I know three guys who targeted a 32 unit apartment complex in Rathmines - they bought two flats each and got themselves on the committee. Because nobody ever turns up at the AGM, coupled with the fact that they have a 18.75% vote, they have their own management company in place doing all the work and are in the process of applying for planning permission to build penthouses on the roof.

There are many opportunities for budding property management entrepreneurs out there - you've just gotta get yourself "in the loop" if you know what I mean. Good luck.

Manic...

Being an existing Director and also a Financial Controller by day I'm aware of what needs to be done and thats why I think I do a better job and make some money from it whilst also reducing my service and improving the service

I'm trying to find if me setting up this company will need to be approved by the other Directors or the shareholders any idea?

Also do I need to resign as a Director or can I stay in that postion while also being a Director of the managemet agent - is there a conflict of interest?

Thanks
Dave

is_that_so

Not sure of that, although from what you say there could be a conflict of interest. More than likely you would need an EGM to agree to the removal of the current company and resign at the same time.

Manic...

Thanks for all the responses lads.

I'm not trying to pull the wool over anyone's eye's or deceive my neighbours I just feel I can do a damn better job than the crowd we have at the moment, reduce my annual service charge and actually make a few quid from it.

is_that_so wrote:

Not sure of that, although from what you say there could be a conflict of interest. More than likely you would need an EGM to agree to the removal of the current company and resign at the same time.

So its an EGM to remove the current company and appoint mine but I will need to resign as a Director first

Can anyone confirm this 100% for me?
cheers

Victor

Potentially just have the Management Company hire the cleaners, gardeners, etc. and exclude the middle man. Just be careful to have all your bases covered.

"I currently own and am living in an apartment complex in Dublin" - do you won one apartment or all of them?

Manic...

Victor wrote:

Potentially just have the Management Company hire the cleaners, gardeners, etc. and exclude the middle man. Just be careful to have all your bases covered.

"I currently own and am living in an apartment complex in Dublin" - do you won one apartment or all of them?

just own one apartment
I'm replacing the middle man with myself just trying to figure out the best and quickest way of doing it

Paulw

I know for our management company (I'm a director), all it requires is the consent of the directors to change management agent. An EGM isn't required.

It is up to the directors to appoint a management agent.