Property Mgmt Fees

d3481553

Hi there,

I own an apartment in Portlaoise and my property management fees have jumped from €1223 last year to €1991 this year and my blood is boiling over it. They say the increase is due to debt collection fees and legal fees relating to them pursuing people that havn't paid their management fees, but I dont think I should get hit to the tune of almost 800 euro because other people aren't paying their fees.

About 18 months ago they tried to impose an 'emergency levy' of 750 euro on the people that were paying their fees to cover the people that weren't. I had had no intention of paying that and I'm sure no one else did either, so I find it a little suspicious that this increase is almost the same amount that they were looking for when they tried to charge an 'emergency levy'.

I was thinking of seeking legal advise on this, do I have a leg to stand on here? This property management fee would be about €180 euro a month paying monthly, which I think is outrageous, especially for an apartment in Portlaoise thats worth 100K and only rents for about €500 a month.

Advise welcome...

Paulw

"They" (the management company) is you. You and every unit owner is a member of the management company.

Each unit owner must pay their percentage of the overall fee for running the development.

Everything should be detailed (all expenses and income) in your end of year accounts, which you should get a copy of prior to your AGM each year.

In short, yes, you do have to pay. It's your legal obligation, as it is for every member. When some don't pay, it makes it harder on everyone.

Instead of complaining about the management company/agent, why don't you complain about your fellow unit owners who are heaping the extra charges on you? Go knock on their door and complain. It would actually do you, and everyone else a hell of a lot of good, and would reduce fees for everyone.

d3481553

I know 'they' is me, I know I'm technically a part owner - a clever technicality on the part of property management companies that I didn't even know about when I bought the apartment. Definitely wouldn't have bought if Id known about it.

Somehow, I dont think a complaining neighbour is gonna make them pony up 2 years worth of management fees.

The only way me going and knocking on their doors would help is if I had a balaclava and some some big guys that break legs with me, but I'm not Tony Soprano, so thats not a road I'm gonna go down.

There has to be other options - If a block of 20 apartments only has 5 residents and the rest are unsold, should the 5 residents have to pay 5K each in fees to cover the total fees they would get if all the apartments were filled, of course not. I have paid everything I've owed every year, I dont think I should have to pay for other people's now too.

In 2008 my fees were €974, now they are trying to charge me just shy of €2000 which I think is disgusting.

Ill update this thread if I find a solution.

Paulw

Unsold units are the responsibility of the developer, who must pay their share of the fees, as per the Multi-Units Development Act.

The only real solution is for the management company to take those who are not paying to court for the outstanding fees. This takes time and money.

As for you not knowing ... sorry, but how did you buy a place and not know? Surely your solicitor made this clear to you, since you would have had to sign the Lease Contract which made you a member of the management company? Or did you just sign every document without reading??

MagicSean

You aren't necessarily a member of the management company. You are a member of the management of the complex and you hire the management company to manage. If the majority of residents wish they can vote to replace or remove the current management company. They can also vote to reduce the responsibilities of the management company which may reduce the operating costs and, in turn, the fee.

Marcusm

Seanbeag1 wrote: »

You aren't necessarily a member of the management company. You are a member of the management of the complex and you hire the management company to manage. If the majority of residents wish they can vote to replace or remove the current management company. They can also vote to reduce the responsibilities of the management company which may reduce the operating costs and, in turn, the fee.

You (Seanbeag1) are confusing the management company with the managing agent. The relevant act (Multi Units Development Act) applies the term management company to the owner of the freehold and makes each unit owner a member.

The managing agent is the person appointed by the management company to undertake the day to day work of running the development. Unfortunately, although that act is very new, it does not seem to deal specifically with the costs of recovering service charges and these fall in default, it is suggested, to be borne pro rata by the unit owners. I suspect that if a court action had to be undertaken to recover the service charges then such costs could be sought under a court order. It does seem bizarre, assuming that only a small number fail to pay, that the costs of recovery could be so high as to increase the service charge by 50%.