Management fees in Apt complexes

Chrissi

Hi Guys,

Bit of advice please....

I own an apt in a very small apt block with only 6 apts. The management company comprises of all owners (5 in total). The builder, who still owns two apts, is the self-appointed director of the management company, therefore he looks after all expenses & maintenance etc himself. The only expenses are electricity for the year & insurance. There is no garden / lift etc.

The management fee is decided by him and the company auditors (!) every year and went from €700 in 2006 to a proposed €1400 this year. Last year it was €1200 and this year he is saying that he must add 5% of the outlays from the previous year (approx €200) to last years figure, PLUS 200€ extra into a sinking fund. He keeps quoting some bill passed by the senate last summer. He is willing to write off the 200€ for the sinking fund if we all sign a legal document agreeing to same.

The problem is that he is saying that the 5% extra will be added to the previous year's management fee every year from now on, and on average it's €200 per year. This means that in ten years time the management fee will be €3400 for each apt in the small complex!! It's just beyond affordable. Myself and two other owners are anxious to get this sorted now before it gets to that level.

Does anyone have any advice or has anyone been in a similar situation? I'm not entirely sure how to tackle this because the director is fairly over-bearing.

Tom Young

No legal advice is available here. Sorry. Please read the charter and seek appropriate legal advice from a solicitor.