Fair distribution of apartment management fees by number of bedrooms

dubrov

Jsut wondering if people had any opinion of what the fair distribution of management fees should be in an apartment complex based on number of bedrooms.

In my development it is currently
1 bed = x
2 bed = 1.5x
3 bed = 2x

It seems a bit unfair to me given a 3 bed does not use twice the services that a one bed uses.

I was thinking something liek the following would be a lot fairer.
1 bed = x
2 bed = 1.25x
3 bed = 1.5x

Would anyone be able to compare splits in their own development or offer any opinions?

athtrasna

Regardless of whether you think it's fair or not, if it's in the lease you signed at purchase it's virtually impossible to change the way fees are apportioned. Ours are done by unit size but each unit size pays a certain percentage of the budget.

ted1

dubrov wrote: »

Jsut wondering if people had any opinion of what the fair distribution of management fees should be in an apartment complex based on number of bedrooms.

In my development it is currently
1 bed = x
2 bed = 1.5x
3 bed = 2x

It seems a bit unfair to me given a 3 bed does not use twice the services that a one bed uses.

I was thinking something liek the following would be a lot fairer.
1 bed = x
2 bed = 1.25x
3 bed = 1.5x

Would anyone be able to compare splits in their own development or offer any opinions?

ground floors don't use lifts and those on first floor probably dont either.

as lifts can huge alarge chunk of the budget there should also be a weighting placed on the floor.
so your now at
1 bed= x
2 bed =1.25x + y
2 bed 2nd floor=1.25x+2y
2 bed 3rd floor=1.25x+3y

etc

dubrov

Only thing I could find in the lease relating to distribution was:

"On the execution hereof the Lessee shall pay to the Lessor on the sum of €850/€1,050/€1,250.00 on account of the Service Charge for the period of 12 months from the date of closing of the transaction."

This implies a much lower ratio.

No mention of lifts but there is an underground car park. All apartments use the lift but ground floor apartments would use it much less.

Paulw

athtrasna wrote: »

Regardless of whether you think it's fair or not, if it's in the lease you signed at purchase it's virtually impossible to change the way fees are apportioned. Ours are done by unit size but each unit size pays a certain percentage of the budget.

Ours is done by floor space. We have some 3 bed units that are larger than other three bed units. We have 3 bed duplex and 3 bed apartments. They differ in floor size.

Fair or not, it is what was in the Lease Contract, and the percentage of the management company budget.

dubrov

ted1 wrote: »

ground floors don't use lifts and those on first floor probably dont either.

as lifts can huge alarge chunk of the budget there should also be a weighting placed on the floor.
so your now at
1 bed= x
2 bed =1.25x + y
2 bed 2nd floor=1.25x+2y
2 bed 3rd floor=1.25x+3y

etc

1 beds use the lift as well so surely should not be exempt. THe lifts make up a small proportion (~4%) of the service charge anyway.

the groutch

ground floor apartments shouldnt get it cheaper imo, as they tend to use common areas (gardens, play areas, etc) alot more than someone on a higher floor.

Chris_5339762

I think the biggest thing they could do with management fees in this country is set up a standing order or direct debit system much like the way you pay your mortgage.

At the moment, you typically send it in by cheque and that appears optional to some people. You'd do better if the money was taken out of your account yearly (or have a monthly option) with little to no effort.

murphaph

My apartment in Germany is done based on floor area. I think it's the fairest way but no matter what, you can look at it in a way that makes you think "hey, that's not fair because...".

athtrasna

Chris_5339762 wrote: »

I think the biggest thing they could do with management fees in this country is set up a standing order or direct debit system much like the way you pay your mortgage.

At the moment, you typically send it in by cheque and that appears optional to some people. You'd do better if the money was taken out of your account yearly (or have a monthly option) with little to no effort.

We have direct debit options, also paypal, credit card payments and direct lodgements. The key is to get people paying something, ideally all but at least making an effort. If your management company is one of those demanding full payment then you should raise the issue at your next AGM.

Victor

ted1 wrote: »

ground floors don't use lifts and those on first floor probably dont either.

as lifts can huge alarge chunk of the budget there should also be a weighting placed on the floor.

However, those units are more likely to suffer from wear and tear than upper floors, e.g. the risk of damp, windows need more cleaning, more window breakages, etc.

Top floor units are likely to have more roof-related problems.

dubrov

Thanks all. I take your points that fair is subjective.

It sounds like it shoudl clearly be specified somewhere in the lease agreement.
I'll check again to see if I can find anything more.

LowKeyReturn

OP I think you can see that everyone has their own opinion on why they should pay less, hence the reason these things can never be resolved between the parties. Take your lease along to a solicitor and get some advice, the management co. can't unilaterally change what's in your lease agreement.

The_Conductor

All of this is academic to be honest.
Once you purchase the unit- you are buying a long term lease with the manner in which management charges apportioned, specified in black and white. You will *not* be able to get out of that- and indeed, if you try to retrospectively change it in an AGM or an EGM- all you'll do is end up in court (supression of minority rights- someone will pull it out of a hat- almost inevitably).

You need to get your lease- and see what it specifies. You need to contact the company secretary and confirm that the self-same clauses apply to other people's leases, or if not- how and why they differ from yours. In our development- some owners paid the builder extra for the right to have additional parking spaces (I have 3 for example) or to park a commercial vehicle (one of my neighbours). The developer is long gone elsewhere (no, he's not dead), and doesn't care about the mess he left in his wake.

You need to liaise with the company secretary and find out what the lay of the land is re: leases- and your own solicitor will have a copy of your own lease.