Changing management company.

Harrythecat

Hi all, would be grateful for some advice on getting a new management co. into our apartment complex. We have over the past couple of years arrived at a situation whereby our current management co. have been less and less active with regard to services provided. To the point where we have now received a letter from them stating that due to lack of funding all services have been withdrawn, including block insurance, bin collections, maintainance etc.
It is fair to say that quite a few tenants are in arrears of varying amounts but the management company have ignored requests to introduce a payment plan for those who need it, the fee is over 1000 per year each and given the current climate it has for some been difficult to stump up this amount all at once. There has not been an AGM in the five years we have been here ( a legal requirement as far as I understand). The bins have not been collected for weeks and the smell and the flies this creates is becoming unbearable.
So what I'm asking is; where do we stand on getting a new co. in? what will be the situation regarding outstanding fees? can we still be charged these fees in the absence of any services? Can we negotiate new rates with both the current company and the new one? Can we legally be left without block insurance? can we ask the council for assistance regarding the bins as it's really becoming a health hazard at this stage. And finally, the management company itself actually appears on the CRO website as having ceased operating and our letters now come from an office in Northern Ireland, not sure what to make of this, does anyone know what this means?
I appreciate that there is a lot to this, any feedback would be gratefully received, thanks in advance.

Mikros

It doesn't come across in your post so apologies, but do you know the difference between the management company vs. the management agent?

The management company is the collection of every house/apartment owner in the development each holding one share in a private limited company that owns and is responsible for all the common area and services.

The management company typically hires an agent to look after the collection of fees and the day to day operation of the company. If your management company has been struck off by the CRO that means it is not a legal company anymore which is a very bad thing. You will to be able to sell your property. You will not be able to arrange insurance which may invalidate the terms of your mortgage. It can be time consuming and expensive to resurrect a company and will possibly involve a trip to the high court. If no accounts have been filed in 5 years it doesn't sound good...

If the agent has gone bust you need to arrange an AGM in accordance with the articles of association of the management company and try and hire and new agent. You need to find out who are the directors of the management company.

I don't mean to worry you, but you and the other residents to find out what is going on right away.

MrsMOOO

Hi Harrythecat,

As the poster above says, please be fully sure if it is the management agent or the management company (to which you are a member of) that are struck off. The mgt company employs an agent to manage the estate on a day to day basis.

This is a very serious situataion if the mgt company has been struck off.

With regards the services being withdrawn, perhaps a few of the owners within the estate could get together to plan going forward the next step, that you are not alone in all the work. This seems to be happening more and more lately with people not paying the fees, some people seem to expect things done for nothing ie refuse collected, insurance, public lighting, lifts etc. I have seen it in a few occasions in the past when people know that there is no insurance in an estate that they see the € sign and take full advantage. Keep us posted with how you get on!

Lantus

I would advise the following: -

1/ Get as many residents together who actively want to solve this problem. Talk to your neigbours, form an action group and make sure you can contact each other readily as and when needed.
2/ Get as much info off the CRO site about your owners management company (OMC.) NOT your managing agent, as others have said this is critically important. There should be the current director names and addresses which you can purchase for a few quid. Contact them and talk to them. If they have given up or were the developer and just not interested then you and other residents now need to step up and take control in becoming directors.
3/ Read up on your articles of association on the CRO, the ODCE handbook to management companies and the MUD act 2011. Last 2 are free online. fantastic resources which contain all your rights and obligations.

No accounts is a problem but not insermountable. The agent may have info to provide but remember they are a third party and have no legal abligation to provide you anything. (The directors needed to keep up on this which they obviously didn't) Dont waste too much time on them.

Only directors can appoint agents at an AGM with vote approval from the residents who attend and again only the OMC can purchase insurance or organise contracts as they are the company and you are just individals.

If no one wants to become a director you can get an agent to perform this duty but it will cost you dearly, and as non payment is an issue.....

In terms of service fee there needs to be flexibility. Good schemes offer direct debit, visa, chq, cash, discounts for early payment. BUT, they also add fees for late payments and ruthlssly pursue non payment, through the courts eventually if people dont engage. The final cost to them is the service charge plus all the extras and legal fee's so its always good to not be stubborn. Whats happened to you as with us is that the agent had no consistent mechanism to ensure payment and people got used to getting away with it. BAD!

In terms of back payment the lack of any records makes this a problem as how do you know who owes what? At least for now the best thing would be to draw a line under it and just move forward in establishing a new fee and agent and worry about past fee's later if at all.

You could appeal to the local authority for the bins but as its a privatley managed estate they may not entertain you, even on health and safety grounds. They may even bill you or request that residents organise their own refuse removal privatley.

The mud act allows for managment companies to be re-instated easily to normal status so dont worry too much about it being struck off. You dont need to got to the high court or employ "the good wife." You can apply to the CRO and I think you may need a solicitors letter. Its now designed to be an easy process. sec 25 of the mud act. (it's all in there baby!) plus the ODCE guide. The apartment owners handbook is very good. There is also the apartment owners network which you may want to join.

Anything else?

cookie1977

Fair play lantus

Harrythecat

Thanks so much for replies given. Are currently arranging a meeting with other residents over the coming weekend. Will update again. Appreciate time taken Lantus, mrs MOOO and Mikros. :cool: