Is there circumstances where an owner occupier can get their management fees waived or reduced?

Is there any circumstances where a board member/owner in an apartment complex can have their management fees waived or reduced?

I am a bit skeptical about one of our board members. We just had our yearly AGM and he has signed off on a budget

report where the management fees are through the roof. He is an owner occupier and also a pensioner and he made no complaint

about the budget. He is also responsible for enrolling the current management company.

I was wondering if there is some kind of government scheme where pensioners can get help with management fees or the thought crossed

my mind that the management company might be giving him reduced fees or waiving fees for giving them business and supporting some of their questionable

business decisions that when looked at closely seem more like conflicts of interest.

Is there anyway to find out discreetly?

Dav010

What?

How do you know how much money said pensioner has in the bank?

If you think something is awry, put up your hand at the next AGM and ask if any unit owner is getting a discount.

What do you mean “enrolling the management company”? As a unit owner, you are automatically a member of the management company.

dennyk

The annual fees are not charged by the property management company, they're charged by the OMC, and are usually paid directly to the same, so a director wouldn't be able to get away with paying a lower annual fee than that set out in the lease covenant unless the rest of the board, or at least whoever is handling the financials, are also conspiring with them to cook the books, which is very unlikely (and would also be tricky to pull off with an OMC in any case, given the very limited sources of income and outgoings; if money was going missing, it would become obvious very quickly).

Budgets and annual fees are also voted on by owners at the AGM; the directors sign off on the budget each year for legal reasons, but the actual decision to implement a proposed fee increase (and accept the rest of the proposed budget) is up to the general membership. If the owners voted to accept it, the directors can't refuse to sign off.

If you have concerns about the fees or other aspects of the annual budget, you should attend the AGM yourself and bring those concerns up there, or discuss the matter with your fellow owners and get enough on board to call an extraordinary general meeting to address the subject. Do keep in mind that budgeting for a multi-unit development is more complex than "fee going up = bad!", though; there might be perfectly legitimate reasons why the fees have increased recently (increasing cost of insurance and upkeep, recent unexpected expenses, aging buildings and common areas requiring more repairs, poor management in prior years resulting in deferred important maintenance or an insufficient sinking fund, a larger proportion of delinquent owners, etc.). Refusing to approve annual fee increases despite increasing costs or inadequate current funding is likely to have long-term negative consequences for your development (and thus your own property value).

Dav010

https://www.boards.ie/discussion/comment/121553354#Comment_121553354

Actually they are charged by the management company, which you seem to be confusing with the managing agent. It is a small, but important distinction.

TheChizler

https://www.boards.ie/discussion/comment/121553535#Comment_121553535

Maybe the agent here collects the fee on behalf of the OMC?

Dav010

https://www.boards.ie/discussion/comment/121553547#Comment_121553547

That is generally the case, but it is a charge by the management company.

Mrs OBumble

Why do you assume that a pensioner is of limited means? Many have plenty of money.

Bass Reeves

https://www.boards.ie/discussion/2058328951/is-there-circumstances-where-an-owner-occupier-can-get-their-management-fees-waived-or-reduced

I would expect that most MUD fees are increasing by 8-15% at present, along with that you may have cash calls for extraordinary expenses. Its tge nature of the beast

Fiona

I was a director of an omc and I still had to pay full charges no discounts.