Management Fees Query.

PJ_RS1800

Hi, first post so be gentle!
My girlfriend and I are currently in the house hunting process.

We have found two places we really like, both in the same region of the same estate, both identical 3 bed semi-d's, with different estate agents.
I've been trawling through all the other topics re: offering below asking price in current climate, mortgages etc. so am happy enough that I'm adequatley informed with everything but theres one thing bothering me at the moment....

The estate in question is still being developed (houses we are interested in are 2 years old) and there are management fees (even for houses) to be paid. ....estate agents didn't mention this to us either until I asked them...

This has me feeling a little uneasy....both estate agents quoted me different fees....both close (€600 and €800(she thinks))...the houses are literally 20 yards apart.

Who should I contact about finding out the exact fee, what are peoples experiences with management fees, particularly for houses, what should I be wary of in general regarding management fees.
As I say I'm just a bit thrown about there being fees payable for houses as I've never heard of it before.

Any advice gratefully received.

Cheers!!

Cantab.

PJ_RS1800 wrote: »

Hi, first post so be gentle!
My girlfriend and I are currently in the house hunting process.

We have found two places we really like, both in the same region of the same estate, both identical 3 bed semi-d's, with different estate agents.
I've been trawling through all the other topics re: offering below asking price in current climate, mortgages etc. so am happy enough that I'm adequatley informed with everything but theres one thing bothering me at the moment....

The estate in question is still being developed (houses we are interested in are 2 years old) and there are management fees (even for houses) to be paid. ....estate agents didn't mention this to us either until I asked them...

This has me feeling a little uneasy....both estate agents quoted me different fees....both close (€600 and €800(she thinks))...the houses are literally 20 yards apart.

Who should I contact about finding out the exact fee, what are peoples experiences with management fees, particularly for houses, what should I be wary of in general regarding management fees.
As I say I'm just a bit thrown about there being fees payable for houses as I've never heard of it before.

Any advice gratefully received.

Cheers!!

Make sure that if say 20% of the houses aren't sold, that the developer is paying 20% of the estate's management.

I'd negotiate the management contract to ensure that clauses such as this are written in.

I'd also try to negotiate it so that the management fee cannot increase beyond the level of inflation, unless the residents agree to extraordinary increases.

Personally, I'd steer well clear of any house purchase where a management company is involved. The whole area is a mess and you're open to exploitation/abuse by cocky developers/directors. (My aunt has had first-hand experience with dodgy tactics involving developers/builders trying to take over an entire apartment complex so they could redevelop it).

antoinolachtnai

The reality is that an individual purchaser is not really in a position to negotiate a management contract.

How Strange

Cantab. wrote: »

I'd negotiate the management contract to ensure that clauses such as this are written in.

I'd also try to negotiate it so that the management fee cannot increase beyond the level of inflation, unless the residents agree to extraordinary increases.

Personally, I'd steer well clear of any house purchase where a management company is involved. The whole area is a mess and you're open to exploitation/abuse by cocky developers/directors. (My aunt has had first-hand experience with dodgy tactics involving developers/builders trying to take over an entire apartment complex so they could redevelop it).

Management fees and contracts between owners and the management company are non negotiable. The fees are set by the management company. The contract is outlined in the lease document. An estate agent may promise x, y and z to complete the sale of a property but it means nothing.

AFAIK, all new housing estates are run by a management company for the first few years so if you're buying a relatively new house then they are unavoidable.

OP, the best questions to ask are what is included in the service charges - what are you paying for. Also, have a set of accounts been sent to the CRO yet. You can find out the answer to the second question by finding out the name of the management company and then doing a search on the CRO website.

MysticalSoul

Yes, find out who the Management Company is. Even tell the EA about the discrepency between the two of them.

Paulw

irishamethyst wrote: »

Yes, find out who the Management Company is. Even tell the EA about the discrepency between the two of them.

Don't you mean to find out who the management agent is? The management company is generally "Development Management Company Ltd".

Check the apportion of the management fees. It is generally based on sq ft of the unit sold. So, even though the units appear identical, one may actually have more space than another (although that price difference sounds unusual).

Check who the directors of the management company are. Are they the developers or are they people elected by the company shareholders (those who own units)?

Check the accounts for the management company. The estate agent should be able to provide these (through the management agent). Also, check the CRO that they have held an AGM and that accounts have been submitted.

Talk to your neighbours. Knock on door and ask about the management. Also, check www.neighbours.ie for your development and see what people living there have to say.

Best of luck.

SimpleSam06

No management fees are applied in the vast majority of estates, my advice would be to find a place in one of them instead. You already pay enough taxes.

jdivision

Be aware that management fees are often kept officially low for first two years and then soar in price

Paulw

jdivision wrote: »

Be aware that management fees are often kept officially low for first two years and then soar in price

Not always the case. Ours have never increased, and will decrease for the coming year.

SimpleSam06

Paulw wrote: »

Not always the case. Ours have never increased, and will decrease for the coming year.

Thats why he added the qualifier "often".