Property Maintenance Company screwing us over- do we have ANY legal standing?

Hi,

I really hope I can get some advice on this (emotional!) matter.

I live in a small 1-bed apartment and am being charged over E1700 in maintenance fees (!!!). We have our own enterance and have limited green spaces and no security. This is more than double the average in the area. In fact, the 3-bed apt across the road pay E860 per annum.

The builders have retained a number of apts. in the development and sit on the board of directors of the maintenance company. There has been one AGM held since we bought the apt 4 yrs ago and on that occasion a vote was held as to whether the fee should be allocated with square footage in mind (and whether the residents could take control over certain apsects of the property maintenance due to the fees being so high)...
...The majority of the residents voted for this to be the case, however, the builder of the development voted against it and as he owns several units was the majority vote holder. I would like to point out that not all residents were able to attend on this night.

Anyway, that was 3yrs ago and they have not held an AGM since despite many, many calls and e-mails asking them to do so. We e-mail them weekly asking them to please explain why our fee is so high blah blah blah... but with no satifactory explanation/outcome.

They are in a position to raise our fee each year to whatever they wish (and have done) and we seem to be unable to stop them.

Do I have any legal standing in this situation and is there any regulation or regulator that could be notified regarding this situation???

Money is really tight and we have just had our first child. With the fee being so high we fear it will be even more difficult to sell the apt. I am so stressed out and sick to the back teeth of being ripped off. Help!!!

If you are an owner you are a member of your management company. That brings rights and responsibilities. For starters check out the stickies on that forum on here!

Can I recommend that you read the Robert Gogan's "Guide to Apartment Living in Ireland." It will tell you your rights and obligations in relation to the Management company of which you are a member. You could consider contacting the Director of Corporate Enforcement to report the Directors of your company for not holding an AGM which they are legally obliged to do. There is legislation pending which will govern the operation of management companies which is long overdue and should prevent the situation which you describe.

Hi Squirms,

€1,700 seems like a hugely inflated management fee. Electronic gates and lifts can be costly to maintain but there should really be no need for your fees to be that high and it sounds like the developers are taking advantage of their control of the management company. You (and other apartment owners) in your complex really need to take control of the management company if possible. Hopefully there are enough apartment owners to outnumber the developer's voting weight so you can take majority control.

In addition to Threadser's advice you should also check out the [broken link removed]'s advice website. Their guide to Buying And Living in a Multi-Unit Development Property in Ireland is excellent. What should be of most interest to you right now is the [broken link removed] as you need to get together with other apartment owners and call an EGM. However you should read the full guide first as this should help answer most of your questions about your rights and entitlements before you proceed with calling an EGM. You have rights and these are explained here.

As a director of a management company myself I cannot stress how important it is for you and other apartment owners in your development to take control of the situation if possible. Otherwise, you risk your management fees being misappropriated which is what I feel may be happening with yours at the moment. Management companies when run properly make a huge difference to the quality of life in an apartment complex but they are only as good as the people running them. A well run management company requires pro-active directors who run it in conjunction with a good management agent.

ivuernis said:

You (and other apartment owners) in your complex really need to take control of the management company if possible. Hopefully there are enough apartment owners to outnumber the developer's voting weight so you can take majority control.

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Unfortunately most Memo & Artticles of Assoc of Management Companies are worded so that the voting powers of the Developer outweigh all other voting rights. In my own estate, the developer has (I think) 5,000 votes at the AGM so even if he keeps one unit, he still holds the balance of power at the AGM, even if every single other owner votes against him.

Yes, it is an issue with many developments. It angers me that this is still going on and that many apartment owners have no power over this situation. AFAIK the Multi-Unit Development Bill enforces a one vote per apartment rule but I don't think the bill has been passed into law yet. I'm lucky in that the developers retain no control of the management company or retain any apartments in my development.

They're in breach of the companies act if they've only held one AGM in 4 years. They might have failed to comply with a number of other regulations. You might want to find out whether the directors are liable for any fines issues against the management company.