Management company

Loopsie

Hi All
Just looking for a small bit of advice here in relation to my management company and what powers they have
I bought my apt in 2005 and unfortunately like most my salary took a nose dive in 2008/2009. I went to my management company and explained that i could no longer afford the fee and offered them €100 per month which they have been taking for the last two years or so. This has left my account in arrears with them quite substantially. I got a letter from them yesterday stating that they did not feel i was prioritising my debt with them and i needed to contact them to discuss a higher payment monthly.
Mostly i cannot afford any increase currently and feel €100 per month is a sufficient amount. Can they take legal action against me?
To add fuel to the fire the management company changed our parking rules about 2 years ago and as i only got one space with the apartment my tenant moved out as there was no available parking for her. The parking is still not resolved despite numerous meetings and uproar from the residents, i have explained to the management company that without rental income due to lack of a parking facility i am stretched to within my limit, they dont seem to hear this!!! I live kind of out of the way and must have a vehicle for work so unfortunately offering my space to someone with the spare room is just not an option
Any advice greatly greatly appreciated!!!!!

godtabh

What does it say in your lease about parking? If the lease says 2 spots then you are entitled to two spots and so on.

I'm a director of a management company. Generally if people are making an effort to pay each years fee within the billable year that we accept monthly standing orders. If the debt is unsustainable we will take further action. So far we have had names published in Stubbs and taken people to court where we have registered the debt but that is generally a last resort.

Paulw

Loopsie wrote: »

Hi All
Can they take legal action against me?

In short, yes, they can take legal action against you, if you have outstanding debt and unpaid fees.

But, it's highly unlikely that they will.

Getting the money in from management fees is generally the biggest issue in a development. Without the money, services are effected, such as lighting, refuse collection, general repairs, etc. Never a good thing.

I was a director of our management company, and we had instances where people said they were having trouble paying. Once an agreement was made, and money was coming in, we were happy enough. But, then you see instances where people say they have no money, but yet buy a new TV, or get a new car, etc.

People tend not to prioritise their management fees. This is a big issue. They prefer to have good TV service, broadband, phones, etc, before they feel they need to pay their management fees.

My advice - contact MABS. Sit with a professional and go through all your finances. You may be able to make cuts in other areas, that will enable you to pay more of your management fees.

Procrastastudy

Is this some sort of 5 bedroom mansion-apartment with a 24 hour concierge and massage service? Unless there is a significant reason why your fees are over €2000 a year (which I'm guessing they are) I'd be looking at the accounts and looking to change the management co.

godtabh

Procrastastudy wrote: »

Is this some sort of 5 bedroom mansion-apartment with a 24 hour concierge and massage service? Unless there is a significant reason why your fees are over €2000 a year (which I'm guessing they are) I'd be looking at the accounts and looking to change the management co.

There can be man reasons why the management fees can be large.

For example the more lefts in the development the bigger the fees. My development has close to 20 lifts for approx 160 apartments. That is a massive percentage off the over all management fees as is insurance.

The most important thing with a management company is to ensure that the directors are residents/owners and remove the developer appointed agent (unless they are actually doing a good job - it can happen!)

Loopsie

Thanks for quick reply
When i bought the apartment i got one space but we had planty of parking in the development. Since the introduction of a creche onsite approx 2/3 years ago they have designated alot of the 'free' parking to them.
I honestly dont have another penney to give them unless i can get a tenant and even though i have had the room advertised for months with many viewing as i cant offer parking i seem unable to attract a tenant, catch 22

In regard to not prioritising my debt i can hand on my heart say that i am not under prioritising them. I struggle to pay them 100 a month. I dont need to see MABS as i had a financial review last year .......... my mortgage comes first.
The comapny are pretty useless in my opinion also and as i said there has been massive conflict between them and the residents in regards to lighting through out the development, security within the development, vandalism, gritting of walkways during snow/ice/frost, parking, common areas and how grubby they are, landscaping of the gardens................numerous problems

Loopsie

Procrastastudy wrote: »

Is this some sort of 5 bedroom mansion-apartment with a 24 hour concierge and massage service? Unless there is a significant reason why your fees are over €2000 a year (which I'm guessing they are) I'd be looking at the accounts and looking to change the management co.

We have been trying to vote them out for about 4 years but due to the complex not being finished (this is what we have been told) the builders have designated the management company and until they hand over the development 100% we are pretty powerless

I agree it is an extortinate amount of money to ask people for in this climate.

godtabh

Loopsie wrote: »

The comapny are pretty useless in my opinion also and as i said there has been massive conflict between them and the residents in regards to lighting through out the development, security within the development, vandalism, gritting of walkways during snow/ice/frost, parking, common areas and how grubby they are, landscaping of the gardens................numerous problems

Another catch 22 situation. Residents dont pay their fees the managment company cant solve these problems. It costs money to provide lighting through out the development, security within the development, vandalism, gritting of walkways during snow/ice/frost, parking, common areas and how grubby they are, landscaping of the gardens.

Management companies are run like business (or at least they should be). If a debt is owed it can be recovered (on paper anyways)

PS this isnt a dig at you.

listermint

godtabh wrote: »

There can be man reasons why the management fees can be large.

For example the more lefts in the development the bigger the fees. My development has close to 20 lifts for approx 160 apartments. That is a massive percentage off the over all management fees as is insurance.

The most important thing with a management company is to ensure that the directors are residents/owners and remove the developer appointed agent (unless they are actually doing a good job - it can happen!)

20 lifts for 160 apartments! Sounds like it was designed badly tbh.

godtabh

listermint wrote: »

20 lifts for 160 apartments! Sounds like it was designed badly tbh.

In theory its great. In reality it costs a lot of money!

Paulw

Sounds like you are doing all you can.

If there are issues, are these not discussed at your AGM? Do you elect new directors each year? If the management agent is not performing, then have the directors considered changing management agent?

Sounds like the unit owners need to work together and chase the management agent and management company directors to run the place properly. But, of course, if the money isn't there, then it can be hard to run the place well. Catch 22 again.

Loopsie

there are many many issues within the development and about who runs it etc but really what i need to know is if i refuse to pay them anymore what essentially can they do to me?
I don know if i ever sell the apt and if there are any arrears on management fees that these will come out of the sale
If they were to haul me to court and i have shown that i am paying what i can will they demand the arrears and get it?

Paulw

You can't sell the unit until all outstanding fees are paid, unless the management company agree with your solicitor that outstanding fees will be paid from the sale. Some companies allow this, our doesn't. We brought in a rule that fees need to be paid before the sale is completed.

They can take you to court. However, if the court deems that you are making the best effort possible to pay, then it is unlikely that a ruling would go against you. Unlikely, but it is still possible.

You need to have a discussion with the directors of your management company and explain your situation to them. I would also advise putting as much as you can in writing.