Exorbitant management fee

[LoveAll]

Hi there,

3 yrs ago, a friend of mine bought a 1-bedroom apartment in Dublin 8.

Yearly management fee (with Bin charges) was under 900 euro.

Now the new management company raised fee to 1300 euro, based on sq feet. We feel the charges are very high.

What do you think abt the hike for D8 & if it is a rip off which organisation can help to negotiate?

My friend thinks – none of the other apartment owner will retaliate.

Thanks in advance.

 

[CCOVICH]

The fees have increased for a reason-but which one? There are loads of charges that make up the annual fee, which is based on the budget for the forthcoming year.

Why was the decision taken by the management company (presumably onwed by the owners of the apartments?) to engage a new managing agent?

Are the new agent's fees higher than the existing agent?

Was there a sinking fund provision in the existing fees?

Have any painting works or other improvements planned for the coming year?

Request a copy of the current budget from the managing agent.

Has the basis for calculation changed from a flat fee to square foot?

Your friend can put themselves forward for election as a director at the next AGM. I don't know of any organisation that can help-it is ultimately the owners who are responsible. If enough of them are happy to pay the increased charges, I don't think your friend has much choice.