Legislation change regarding property management fees?

bada_bing

I recall seeing something in the papers a couple of weeks ago about introducing legislation that will see the property management charges being reduced to 200 euros. Or maybe i got mixed up with something else but i can't find any threads about this proposed legislation change??
Was i imagining things or is there such legislation coming?

MysticalSoul

Personally, I cannot see that happening, as the bin charges, and buildings insurance, on a per unit basis, would amount to more than that per annum.

jd

It is proposed that amimimum of 200 euros per unit has to go into the sinking fund.

bada_bing

thanks jd! So i guess that's not necessarily good news then, as i would imagine that the annual cost would increase as management would use that as an excuse to increase the charges, rather than manage the money properly from existing fees.

athtrasna

bada_bing it sounds to me like you know f-all about management fees. Forgive me for being so blunt but I get so frustrated at the level of ignorance when it comes to management fees!!

Have you read Robert Gogan's guide to apartment living? It's a good start to explaining what fees go towards.

I'm a director of our management company, purely to make sure that my best interests as an owner are protected. Our fees cover insurance, refuse. landscaping, maintenance, management agent fees, sinking fund.....not a single cent is spent that isn't accounted for. This new thing about increasing contribution to sinking fund will only raise fees for owners. €200 barely covers the insurance premium per unit!!

Education and knowledge is power. Anyone who bought into a managed development without knowing the basics is on a hiding to nothing!

bobbysands81

athtrasna wrote: »

bada_bing it sounds to me like you know f-all about management fees. Forgive me for being so blunt but I get so frustrated at the level of ignorance when it comes to management fees!!

Have you read Robert Gogan's guide to apartment living? It's a good start to explaining what fees go towards.

I'm a director of our management company, purely to make sure that my best interests as an owner are protected. Our fees cover insurance, refuse. landscaping, maintenance, management agent fees, sinking fund.....not a single cent is spent that isn't accounted for. This new thing about increasing contribution to sinking fund will only raise fees for owners. €200 barely covers the insurance premium per unit!!

Education and knowledge is power. Anyone who bought into a managed development without knowing the basics is on a hiding to nothing!

Gogan's book is essential reading for anyone who lives in a Multi-Unit Development.

The lack of knowledge that exists out there on Management Companies, Agents etc... is staggering. However, solicitors don't seem to have advised their clients properly in relation to this when it comes to buying into a Multi-Unit Development.


Here is said Bill:

http://www.oireachtas.ie/documents/bills28/bills/2009/3209/b3209s.pdf

Carawaystick

One of the good points was that the management company has to have <apartment block name> management company" clearly identifying for all the posters here which is the management co. and which is the management agency....


Athtrasna, I'd have thought that the cost of insuring a unit in an apartment block would be lower than for a house, and there would be no contents cover either? you can get cover for a 3bed semi for just over 200...

Paulw

Carawaystick wrote: »

I'd have thought that the cost of insuring a unit in an apartment block would be lower than for a house, and there would be no contents cover either?

I think you need to do a little research on that. Block insurance is probably the most expensive cost for any development.

There may be no contents insurance, but the insurance cost for a block may be more than €200 per unit. A number of factors are involved.

athtrasna

I don't have the budget to hand but AFAIK insurance for our development makes up about 20% of the entire budget. Bear in mind you need common area public liability insurance as well as buildings insurance.

Jo King

Carawaystick wrote: »

One of the good points was that the management company has to have <apartment block name> management company" clearly identifying for all the posters here which is the management co. and which is the management agency....


Athtrasna, I'd have thought that the cost of insuring a unit in an apartment block would be lower than for a house, and there would be no contents cover either? you can get cover for a 3bed semi for just over 200...

A semi costs less to insure than a terraced and more than a detached. The reason is that rebuilding costs are higher in the case of buildings attached to others. In many apartment blocks the rebuilding costs are potentially very high.
The height of the building and issues of access to the site can make a rebuild very expensive.

Carawaystick

I just thought a block would have much higher levels of fire safety, fire-doors, intumenscent seals on services, sprinklers etc, while flood damage would only be expected to occur on the ground floors...
and some economy of scale effect too.

I had no idea of the cost, I just thought it'd be lower. Ya live and learn.