Managing Agent Fees

mopeds

Hi All

I was wondering if I could get some advice. The managing agent fee for our apartment block has gone up 27% (11500 - 15866 euro per annum). I have queried it with the agent and they have stated that it has increased due to the level of increased management required at the venue as well as the imminent introduction of The Multi Unit Development act and Property Services (regulatory) Act.

Can anyone advise if this is indeed a valid reason for such an increase and/or if managing agent fees are in general going up or down.

Regards

mopedss

NinjaTruncs

mopeds wrote: »

Hi All

I was wondering if I could get some advice. The managing agent fee for our apartment block has gone up 27% (11500 - 15866 euro per annum). I have queried it with the agent and they have stated that it has increased due to the level of increased management required at the venue as well as the imminent introduction of The Multi Unit Development act and Property Services (regulatory) Act.

Can anyone advise if this is indeed a valid reason for such an increase and/or if managing agent fees are in general going up or down.

Regards

mopedss

How many units and blocks. Anything high maintenance like lifts or electric gates.

we recently moved management agent and the quotes we got were around 100 per unit plus VAT. However we have no lifts, electric gates or indoor communial areas.

athtrasna

It depends on the issues in your development, levels of non payment and how much work the agent has to do. We were once told by the MD of our previous agent that he was glad we'd escalated the problem to him because he saw how much work they were doing for us and how they were undercharging us!!

Does your management company tender for an agent from time to time? We found a previous agent to get complacent and increase their charges and decrease their service. Our solution, replace them!

FYI, both piece of legislation they referred to have been enacted for over a year.

mopeds

NinjaTruncs wrote: »

How many units and blocks. Anything high maintenance like lifts or electric gates.

we recently moved management agent and the quotes we got were around 100 per unit plus VAT. However we have no lifts, electric gates or indoor communial areas.

We have 61 units, 4 lifts, gate for carpark, small courtyard. Working out at about 260Eur (VAT Inclusive) per apartment

In a sample size of 5 I have visibility on no notable increases were due to either piece of legislation. Full visibility on the increase should be available, is there not a residents committee ?

athtrasna

mopeds wrote: »

We have 61 units, 4 lifts, gate for carpark, small courtyard. Working out at about 260Eur (VAT Inclusive) per apartment

What are your fee payment levels like? A lot of time can be spent pursuing non paying owners.

Also have you had any major project undertaken, common area painting, repairs of structural issues? These also are hugely time heavy management tasks.

mopeds

Augeo wrote: »

In a sample size of 5 I have visibility on no notable increases were due to either piece of legislation. Full visibility on the increase should be available, is there not a residents committee ?

Yes indeed there is, the management meeting is next week so I will be attending

mopeds

athtrasna wrote: »

What are your fee payment levels like? A lot of time can be spent pursuing non paying owners.

Also have you had any major project undertaken, common area painting, repairs of structural issues? These also are hugely time heavy management tasks.

I am not on the committee but I will be asking next week why the manageing of the block has gone up by almost a third and if there are fee collection issues, the only major work was tree removal in the last year. the block is only 6 years old.

In general i find they provide a good service which i dont mind paying for, just want to ensure they are not ripping us off

Lantus

The MUD act and PSR Act came into being 2011 so I'm not sure how these can be imminent?

If the reason is increased management then ensure they specify exactly what additional management is being provided over and above the last quote.

davo10

OP, new legislation requires management companies have a "sinking fund" to cover unexpected and unplanned for expenses. This is now being collected from unit owners and is a fee over and above what have been paid in yearly fees in the past. If fees stayed the same and used to set up the fund, there would be a considerable shortfall in the accounts of your management company. Remember, the management company is you and your fellow owners, if there is a deficit at year end, everyone's fees go up.

NinjaTruncs

davo10 wrote: »

OP, new legislation requires management companies have a "sinking fund" to cover unexpected and unplanned for expenses. This is now being collected from unit owners and is a fee over and above what have been paid in yearly fees in the past. If fees stayed the same and used to set up the fund, there would be a considerable shortfall in the accounts of your management company. Remember, the management company is you and your fellow owners, if there is a deficit at year end, everyone's fees go up.

The OP is speaking of the agents fee, not the maintenance fee as you are explaining. The agent fee is only one part of the maintenance fee.

davo10

NinjaTruncs wrote: »

The OP is speaking of the agents fee, not the maintenance fee as you are explaining. The agent fee is only one part of the maintenance fee.

Sorry, I had assumed it was the maintanence company fee OP was referring to as there should be no issue with refusing the managing agents fee and putting that out to tender. Why would owners agree to such an increase if they don't have too?, on the other hand if the maintanence fees increased, well that can be explained by the sinking fund etc.