First of all, you are part of the management company. Have you been to the AGM?I suspect the management company increased service charges disproportionally within last few years. For some owners the increase was ~20% for some like me - 40%. What can be done in this situation? The Mgmt company does virtually no work bar organizing the rubbish collection and paying essential outgoings, but they still keep raising the fees like 20%+ a year. People refusing to pay are put on arrears, what's the legality of it? This does sound like an outrage. A typical AGM attracts the attention of 2-3 loyal people which is how they get their decisions approved. The whole situation is very annoying.
What can be done in this situation is that you become an active member of the management company which comprises all the owners in your development. If you are unhappy with the work of the managing agent then you can consider putting the contract out to tender. I am an owner director of an OMC where I live. Costs (insurance, ground and lift maintenance, repairs, bin collection etc) have risen in the past few years and we have had no choice but to pass on this to owners (including ourselves). As others have said, make it a priority to attend the next AGM and query the accounts if you think expenditure has been excessive. If you are unhappy ,then volunteer to be a director and you and your fellow owner directors will be in charge of decisions made.What can be done in this situation?
That's a great idea. Some of the owners have decided to pay the following year. It's an issue for financial managementThe OMC that I deal with give a good discount for fees paid on time and discount not available afterwards which I consider fair
How charges are set and distributed will be in the documents for the management company. The budget will be agreed at the AGM, if there is only 3 people going and the spending is appropriate it wouldn't take much for a few people to get involved at the AGM and their concerns be taken onboard.that's fair enough I'm not objecting increases. I'm objecting unfair increases of 40% while others known to me owners got only 20-25% increase. Is there supposed to be a memorandum outlining one for all increase rate following the AGM?
Also how legal is it to charge arrears? Surely OMCs aren't banking institutions also there's was an open argument in relation to the charges which hasn't been addressed.
I'm objecting unfair increases of 40% while others known to me owners got only 20-25% increase
Can you clarify who the people 'known to you' are ? Are the owners in the same development ? Or are they friends who are apartment owners elsewhere ? Unless it's the former as Sue stated it's not relevant. My MC charges more for larger apartments as they generally will cost more wear & tear, greater waste etc with more people being in them.I'm objecting unfair increases of 40% while others known to me owners got only 20-25% increase.
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