Management co has collapsed, put into hands of developer until situation can be fixed

I received a letter recently regarding the collapse of our management company.

Basically the letter says that 3 managers have resigned, the company has no money and that the management company has now been put into the hands of the developer until a new one can be found.

To this I have no problems, however, the developers management company want an extra €450 (on top of this years €800) from us for the last 6 months of last year so that they can cover the costs.

Surely they can't hold the tenants liable for this payment and should instead chase down the previous company for bad management. We did pay up based on the budgeted figures given to us after all.

Advice here would be appreciated.

Re: Management collapse

Your post is a little confusing so I'm not sure how helpful I can be. It sounds like your management company (of which you are a member) has over-spent for some reason and it in financial difficulties. Three managing agents have quit and the directors of the management company (the developers) cannot find anyone willing to take the contract so they are running the company without an agent.

I'm going to go out on a limb here and suggest that there are unsold apartments in your complex and the developers aren't paying the service charge for those units. Even if everyone else paid (which is unlikely), there would be a big difference between the income and expenditure which is causing your problems. The agents probably quit because the developer was putting them in an impossible situation.

If you could tell us a little more, we might be help to help you.

Re: Management collapse

whampiri said:

Surely they can't hold the tenents liable for this payment and should instead chase down the previous company for bad management. We did pay up based on the budgeted figures given to us after all. Advice here would be appreciated.

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OP, the tenants of the apartments should not be liable for the Management fee. This is a cost for the property owners -- not tenants.

Re: Management collapse

markpb said:

Your post is a little confusing ...

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I share the confusion.

A tenant is not liable for property Management fees as a tenant has no contract with the management company or managing agent. The tenant's contract (lease / rental agreement) is with the land-lord / owner.

I'm not sure of the differentiation between "our management company" and "the developers management company" but surmise that one is actually the managing agent (the one "that 3 managers have resigned" from) and the other is the property management company.

Maybe you could clarify so you can get some suggestions.

Re: Management collapse

It is not clear from your orignal post whether you are a tenant or an owner in this apartment complex. It would help if you gave this information.

Re: Management collapse

Sorry, I'm an owner. CSS the management agents have pulled out and now the old agents ie the developers (Lanes) have been charged with taking over the maintenance of the building. However they're trying to get paid for a period which I have already paid. That money was paid to CSS. What I'm wondering is: are they within their rights to come after me for a period for which I have already paid? I'm thinking that they should persue CSS for this money.

Re: Management collapse

whampiri said:

... and now the old agents ie the developers (Lanes) have been charged with taking over the maintenance of the building...

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Who (what person or corporate entity) has charged the developers with these responsibilities?

Your latest post, while clarifying one issue still leaves me confused about the various companies involved here.