Management Fees

Ravenid

I own a 2 bed apartment in South Dublin in a small complex. (21 apartments 7 Duplex houses)

The management company has recently sent out a demand for our yearly Management Fees however I feel that they are not meeting the levels they should.

Before I raise these issues I want to see if there is a case we can bring to them for withholding payment until the issues are resolved.

Listed from what I believe is the most serious down:

The lift in the 3 floor apartment complex is shut off as an inspection 3 years ago found there was no safety cable attached and the management company said it would cost too much to repair.

The Main Gate has been broken for 8 of the ten years I have lived here. This has lead to the car park beilg used during the day as a local parking spot for the Dart station and at night being used as a dumping ground for stolen cars.

There is no security cameras (There is a fake one which has become the target for local kids and their BB Guns.)

The rubbish collection are is unlocked and locals throw any and everything in there.

The exterior buildings have never been painted and look dreadful.

The interior was painted once after a water pipe burst. (I'm guessing it was covered by the insurance.)

The general areas of the apartments are cleaned on a fairly irregular basis (Usually when one of the owners complains. But I think the only owners who live here are myself and a elderly owner on the top floor.)

The windows have never been washed despite being marked out specifically in the charges.

pinkypinky

You should not withhold the management fees. How can you expect them to fix any of these issues if they don't get the fees in? Do you attend AGMs? Does the OMC send accounts and a budget out?

What you need to do is find out who the directors are, consider calling an EGM, bring them to book and if necessary, get involved. It's an unfortunate reality that many managing agents and companies have been lax in the boom years. It takes people getting involved to turn it around but it can be done.

Santa Cruz

I agree with Pinkypink. This situation needs drastic action by organising a group of owners be they resident or investers.


Remember that you are a shareholder in the Management Company and have every right to demand a proper functioning company.
The complex is of such a size that it would not be too difficult to manage if a group of owners took control.
Check the Apartment Owners website and you might get some information of use. Also the Ask about Money website

Del2005

Ravenid wrote: »

I own a 2 bed apartment in South Dublin in a small complex. (21 apartments 7 Duplex houses)

The management company has recently sent out a demand for our yearly Management Fees however I feel that they are not meeting the levels they should.

Before I raise these issues I want to see if there is a case we can bring to them for withholding payment until the issues are resolved.

Listed from what I believe is the most serious down:

The lift in the 3 floor apartment complex is shut off as an inspection 3 years ago found there was no safety cable attached and the management company said it would cost too much to repair.

The Main Gate has been broken for 8 of the ten years I have lived here. This has lead to the car park beilg used during the day as a local parking spot for the Dart station and at night being used as a dumping ground for stolen cars.

There is no security cameras (There is a fake one which has become the target for local kids and their BB Guns.)

The rubbish collection are is unlocked and locals throw any and everything in there.

The exterior buildings have never been painted and look dreadful.

The interior was painted once after a water pipe burst. (I'm guessing it was covered by the insurance.)

The general areas of the apartments are cleaned on a fairly irregular basis (Usually when one of the owners complains. But I think the only owners who live here are myself and a elderly owner on the top floor.)

The windows have never been washed despite being marked out specifically in the charges.

That sounds like a complex where people aren't paying the management fee, by not paying yours it will only get worse. You have to get onto the directors of your management company and see why they aren't chasing up the non payers.

Lantus

smaller developments are much more susceptible to non payers causing bigger problems. Saying you don't want to pay is the normal response. However OMCs are closed systems. The only money the directors have if that which they collect. People stop paying as services decline and then the whole thing falls apart. The non payers then justifies their non payment because nothing was done while in fact nothing was done because of non payment.

Get the members register from the directors, organise you and fellow residents. Arrange a meeting with the directors (NOT the agent in the first instance.) to discuss the development and issues. This should be an opportunity to learn more about the issues and not just beat up the director team. They could be facing severe problems with non payment and only just be covering the bear legal company costs. Do you use an agent? These are expensive. Could a larger director team made up of residents and owners replace this body saving money.

Is the members register up to date? Can they even contact all the owners?

There's also a range of educating you may need to do on how OMCs work. There's n point in turning up to a meeting with the directors and asking basic questions on how things works or basic legal processes. You need to get past all that and onto strategy, lease enforcement, accounting etc.

Remember that all payments are covered by data protection so don't bother asking who has and who has not paid. The directors are the people who know that.

If it was my development and I was a director I'd be looking to write to everyone explaining the issues. Lay out a plan to tackle issues one at a time over several years and consequences if people don't comply. A meeting (other than an AGM) would also be a good idea to meet people.

If you have a private gated development then clamping should be considered immediately for non payers. Removal of satellite dishes or common entrance key fobs next. Service fee. The clue is n the title. No service fee, no service, simply. That's contract causes the OMC can invoke directly. Beyond that its legal action to recover debts. This is more expensive but ultimately required.