Substantial increase in Management fees - no explanation

Hi OP

what happend at the last AGM? Did you or anyone ask about who the defaulters are and what is being done to recoup fees?
Were fee increases discussed? What was the consensus?

but if you didnt go .... its really not something to argue about.

ELM327 wrote: »

It's a reality of apartment ownership
Make sure you attend the agm

Lazy ownership.

ELM327 wrote: »

That's what I'm saying, he should have attended the agm

I know

GS87 wrote: »

The last AGM was in December at 3pm mid-week in Kildare. I work in Dublin and December is my busiest time of year so I couldnt get the time off work. Odd time of day to have it but anyhoo. No info was shared with me but it wasnt on the table of discussion that I received prior to the AGM.

Unfortunately AGM times will not suit everyone. Your complaint is typical of the most common complaint received by OMC Boards, owners who haven’t attended AGMs unhappy about fees. It is your right as a member to question fees and costs at the AGM.

the_syco wrote:

3pm mid-week sounds like they don't want landlords to come.

3pm midweek sounds like they don't want anyone to come.

Make a complaint and request they organise the AGM outside normal working hours.

As to can they raise the fees to cover non-payers, the answer is yes. The non-payers will eventually pay with penalties when their authentic apartment is sold out transferred

There is no alternative in the short term really as otherwise the development would go to ruin and your apartment would end up being worth much less

All comments above are bang on. Some other suggestions
Attend the meeting even if it means taking time off work.

Try and get yourself onto the owners management committee, normally they have a hard job filling positions.Try and get other neighbors to attend and support your nomination.

Has the management committee via the management agent highlighted to all owners what the late penalty fee is and that it is compounded, often at 8% or higher for any missed management fee payments. Also these fees and all penalty charges must be paid in full before the property sale goes through, including any bank sales. Is this fully appreciated by all owners? Has any property sales gone through where these have not been paid ....! Solicitors have to ensure this fee are fully discharged before sale completion.

Do they offer flexible payment options?

What has the managing agent done to follow up on late payment fees?

Has the managing agent explored other ways of bringing in money , most popular is renting out some car spaces during daytime?

Are they addressing costs aggressively by exploring alternatives e.g. changing waste collection, energy suppliers, insurance, CCTV, lift costs etc.
If you have a caretaker can they do more within their hours of work to cut costs elsewhere e.g. do some cleaning or basic painting they would otherwise have to be paid for.

At the end of the day, you are a member of the owners management.
You must have received a copy of the annual accounts at least by e-mail, study these and compare to the previous annual accounts and see how costs and the fee issue are been addressed. Do they have your email address to receive these is not ensure they have. Hopefully these are not been posted out...!

Yep you are correct, incorrect title, however the same avenues are open to any apartment owner who is dissatisfied with Managing Agent/Board of Directors. Get involved, do not be passive.

Find out what happened at the gm, how many wetw there, whether there was a quorum, what the proposl was and if it was correctly seconded & by who - had they rights to do so etc. get together with your neighbours and call an emergency general meeting and have it revoked - like we did. Management companies are an unregulated black hole and the new curse of homeowners. I would alao be asking for a
list of the services provided for your appartment & the dates. You might find that no-one is paying because the services are not being delivered. As for the sink fund was this on the accounts for past years? If not why not especially as you were being charged and paying for it.

Graham wrote: »

The management companies ARE the homeowners. OMC = Owners Management Company.

Collectively; owned by, managed by, run by, owners....

usually with a managing agent and their staff who negotiate contracts, organise the insurance, organise and allegedly oversee the work, provide audited accounts for the agm etc

GS87 wrote: »

The last AGM was in December at 3pm mid-week in Kildare. I work in Dublin and December is my busiest time of year so I couldnt get the time off work. Odd time of day to have it but anyhoo. No info was shared with me but it wasnt on the table of discussion that I received prior to the AGM.

Thats a very weird time to have an AGM, that would raise a red flag for me. I would be guessing someone / some people have issues that need to be hidden or not discussed. The accounts should give you some indication of whats going on here. Does the sinking fund have a balance ?

Liamo57 wrote: »

I had a management company and the reason I packed it in was because of non payment of mgmt fees. You will find that some owners owe fees going bback years and it all comes to a head such as now. The proper course of action is court but the Managing Agent does not want the hassle. He can resign by letter of resignation. He is obviously getting a good cut out of it.

Do you mean you were a Director? If you were, I would assume you got the same legal advice that we did when I was a Director, taking legal again to recover management fees is expensive, and often futile if the owner is unable to pay. When it was put to the members at an AGM that fees could rise substantially on foot of multiple unsuccessful court actions, even the most vociferous saw that throwing good money after bad did not make sense. The furthest we could go was attaching a lien to the property which meant the MC got its money when the property eventually sold.

Dav010 wrote:

Most owners do not want to get involved in a MC in a voluntary or professional capacity. I own a property in a development with many solicitors and accountants, none were willing to join the Board of Directors nor provide professional services. They all said it was better to have independent accounts and legal advice.

In fairness, a solicitor might become a director and save the management company thousands. This might only translate into a saving of tens of euro for the member.

Then you have to factor the abuse you get from lazy management company members.

Not worth the hassle imo

dubrov wrote: »

In fairness, a solicitor might become a director and save the management company thousands. This might only translate into a saving of tens of euro for the member.

Then you have to factor the abuse you get from lazy management company members.

Not worth the hassle imo

I agree, I know many of them and they justifyably make the exact point you do, it’s not worth the hassle, especially when disgruntled owners start calling their offices looking for info because they didn’t attend meetings. Best just to pay the sub like everyone else and let someone else do it.