First AGM tonight - advice?

SarahMollie

Hi all,

I'm going to attend my first AGM tonight since buying my property (3 bed duplex) last October.

I've been sent a copy of the accounts, directors report and financial statement in advance of the meeting.

Does anyone have any advice on what I should be listening out for and as a new member, is it too early to seek to get involved?

Paulw

The more who get involved, the better. Ask questions - see where your money is spent. See how it's all going.

There will always be the moaners. Those who find fault, no matter what is done. Just go with an open mind.

SarahMollie

Thanks - sure theres always someone giving out about something.

I've had a look through the materiel that was sent to me and it seems to be in order. 85 units in the development (52 of which are apartments/duplexes and pay a bit more for block insurance etc) and the remainder are either semi's or detached houses. There is a proposed increase for those in apartments/duplexes to cover some work required to make sure the balconies remain waterproof. I believe some leaked into the apartments below during the winter so the proposal is to carry out repair works on all balconies as a preventative measure regardless of whether or not there has been a leak. This seems prudent to me.

Sinking fund of about €80k - some money will be taken from this to part fund the work on the balconies, in addition to the increase in charges for owners of those properties.

Seems ok to me?

Mrs OBumble

Are the any lifts or electronic gates? What's the maintenance budget for them? 80k sinking fund may be lots of maybe not enough, depending on what it's got to cover.

manonboard

Be sure to look over the numbers versus any changes that happen in future. Eg: If window cleaning goes from twice to once a year. It should roughly half.

Make sure to ask where the money for the sinking fund is EXACTLY. It turns out my company was saying we had 80k (4*20k), yet upon questioning it, This was theoretical and the money was actually spent on regular things because a few large clients did not pay their fees, and it would be "recouped" in future..
If a lift broke tomorrow, we'd be snookered.

Remember, the company works for members. Feel free to suggest changes in maintenance etc.

There's always a few loopers who never stop whinging. Accept it and ignore them. They'll complain about things like smell of cigarette smoke, a few slightly dim lights, etc There's nothing wrong with issues, but some people never run out of them.

I strongly suggest a mailing list, and a Residents committee email address which one or two people have access to. It has helped foster communication within our estate, and it also allows for the management company to have a point of contact. eg: Me and another guy, instead of 50 others.

SarahMollie

Mrs OBumble wrote: »

Are the any lifts or electronic gates? What's the maintenance budget for them? 80k sinking fund may be lots of maybe not enough, depending on what it's got to cover.

Nope, neither. Its a pretty low maintenance development in that respect. All the apartments are ground floor, with duplex units above, which have concrete stairs leading up to their front doors, and these seem to be low maintenance.

There are just under 20 line items of expenditure, the biggest of which are Insurance €6k, Gardening and Ground Maintenance €12k, Refuse collection at €11k and fees to the managing agent of €15k.

Do these seem reasonable for a development of 85 units?

Paulw

Sounds fairly simple and decent. Of course, it's not easy to know unless you live there and go through the accounts with detail.

SarahMollie

Paulw wrote: »

Sounds fairly simple and decent. Of course, it's not easy to know unless you live there and go through the accounts with detail.

Thanks - yeah hard to know exactly but the place seems in good order and is well maintained. Just wanted to know if those numbers sounded roughly in line with normal charges, and if so then I think things are fine.

Paulw

No two developments are the same. Every set of accounts will be different too. It all depends on the number of units, the makeup of units, the expenses, the facilities, etc.

So, you need to understand your own development and accounts.

April 73

There is no better way of understanding your development & the costs of running it, than volunteering to become a director. Most management companies have too few owners volunteering to do this.

On the face of what you have written, it sounds like the directors are doing the right things.

What may surprise you most at your first AGM is how few owners bother to turn up & make decisions about the place they live. Good on you for taking an interest.

Watch the personalities. See who is a moaner and who is sensible and competent and those who simply don't want to spend anything on the building. Try to see that the board is competent and see if the builder still has a stake in the management company.

Arbiter of Good Taste

Look at the balance sheet and check creditors - these will be people who have outstanding management fees. If there is more than a small number, find out whether these are short term - for example people who pay on a monthly basis who have still yet to pay the last month at the end of the accounting period - or if they are longer term - ie defaulting on their management fee. If there are a lot of longer term creditors, get details of how long each is outstanding, who they are and what the management company is doing to recover these.

athtrasna

Agm is over

SarahMollie

April 73 wrote: »

There is no better way of understanding your development & the costs of running it, than volunteering to become a director. Most management companies have too few owners volunteering to do this.

On the face of what you have written, it sounds like the directors are doing the right things.

What may surprise you most at your first AGM is how few owners bother to turn up & make decisions about the place they live. Good on you for taking an interest.

Hi all,

Well obviously the AGM is now over but thanks for all the advice.

As it happens, I am now a director of the board of management (even though I didnt see the above in time!) so looks like I'm getting involved.

There were 10 people there in total which is clearly a bit disappointing out of 85, but I'm told that was actually a good turn out!

We've a few issues regarding ongoing maintenance of the development, and some preventative work thats been earmarked to help prevent against storm damage which has been an issue over the past few winters.

Without saying too much I also found out about a defect relating to the apartments/duplexes which was recently brought to light by a surveyor for someone looking to buy. This could be quite a cost for all the apartment/duplex owners of which I am one. (I might point out that my surveyor missed it, along with other things)

The development is about 16 years old so homebond is no longer an issue. The company that built the development no longer exists however the individual who was behind that company is extremely solvent and still owns a substantial number of units which are rented out, and out management agent is seeking legal advice to see if we have any come back.

Fun and games ahead!

Paulw

SarahMollie wrote: »

Without saying too much I also found out about a defect relating to the apartments/duplexes which was recently brought to light by a surveyor for someone looking to buy.

The development is about 16 years old so homebond is no longer an issue. The company that built the development no longer exists however the individual who was behind that company is extremely solvent and still owns a substantial number of units which are rented out, and out management agent is seeking legal advice to see if we have any come back.

If the company who built the development is gone then you are on your own. The individual behind the company makes no difference.

Definitely good to get proper legal advice, and proper structural advice too.

SarahMollie

Paulw wrote: »

If the company who built the development is gone then you are on your own. The individual behind the company makes no difference.

Definitely good to get proper legal advice, and proper structural advice too.

When i say the company is gone, I mean the company specifically set up by the builders for this development was ultimately wound down. The parent company still exists, and the gentleman behind it owns more than a dozen of the effected units. Will obviously be following the legal advice.

The Management agent has already had a specialist company in to quite to bring things up to standard, and has put the work out to tender to another 4 companies to try to get us the best price.

blacklilly

SarahMollie wrote: »

When i say the company is gone, I mean the company specifically set up by the builders for this development was ultimately wound down. The parent company still exists, and the gentleman behind it owns more than a dozen of the effected units. Will obviously be following the legal advice.

The Management agent has already had a specialist company in to quite to bring things up to standard, and has put the work out to tender to another 4 companies to try to get us the best price.

Sarah as a slight aside, were these issue you talk about known by the management company at the time in which your purchased the property? I ask, because if they were, they should have been specified in the replies to requisitions, specifically requisition 37 which your solicitor should have picked up on.

SarahMollie

blacklilly wrote: »

Sarah as a slight aside, were these issue you talk about known by the management company at the time in which your purchased the property? I ask, because if they were, they should have been specified in the replies to requisitions, specifically requisition 37 which your solicitor should have picked up on.

Nope, apparently not. They were picked up shortly after my sale went through. Just my luck!

NewDirection

SarahMollie wrote: »

Nope, neither. Its a pretty low maintenance development in that respect. All the apartments are ground floor, with duplex units above, which have concrete stairs leading up to their front doors, and these seem to be low maintenance.

There are just under 20 line items of expenditure, the biggest of which are Insurance €6k, Gardening and Ground Maintenance €12k, Refuse collection at €11k and fees to the managing agent of €15k.

Do these seem reasonable for a development of 85 units?

Do the houses have access to the communal refuse, or is it just the apartments and duplexes?
I presume insurance only applies to apartments and duplexes.

Insurance and management agent fee looks reasonable to me.
Refuse looks high if the houses are not included in that figure. Even if everyone has access to it, I reckon it might be worth getting a few quotes and reviewing how many bins are needed, you might have more than you need.
Without seeing a picture of the grounds its impossible to comment on that figure, but there could be savings made I reckon. Where on a scale is the maintenance from just grass cutting to beautifully landscaped gardens.

SarahMollie

NewDirection wrote: »

Do the houses have access to the communal refuse, or is it just the apartments and duplexes?
I presume insurance only applies to apartments and duplexes.

Insurance and management agent fee looks reasonable to me.
Refuse looks high if the houses are not included in that figure. Even if everyone has access to it, I reckon it might be worth getting a few quotes and reviewing how many bins are needed, you might have more than you need.
Without seeing a picture of the grounds its impossible to comment on that figure, but there could be savings made I reckon. Where on a scale is the maintenance from just grass cutting to beautifully landscaped gardens.

Regarding the bins, they're used by all.

The fees are calculated differently for the houses versus the apartments. Everyone shares equally for the costs which everyone uses and then the apartment owners pay the cost of the block insurance and maintenance of common areas on top.

Id describe the place as generally well maintained, some landscaping but nothing overly fancy. People generally comment that its a nice place to live when I have them over for the first time, but I think most of the plants/bushes are chosen to require as little maintenance as possible.

April 73

SarahMollie wrote: »

Hi all,

Well obviously the AGM is now over but thanks for all the advice.

As it happens, I am now a director of the board of management (even though I didnt see the above in time!) so looks like I'm getting involved.

Best of luck & good for you for getting involved.
I spent five years as a director of the management company where I lived previously.
I learned a lot about human nature - good & bad!

andekwarhola

Wish more people like you lived in our development. From my experience, there's always a shortage of people that are interested in how the place is run and willing to help out and it's great to meet people that are.