| It is important that all owners appreciate the necessity for a Management Company as part of the legal, day-to-day structure in multiple unit developments, whether they are apartment blocks, town houses, retail or office developments.
All common parts and services within any complex, not belonging to or the responsibility of a specific person, must be vested in a body or company. These common areas may be internal and/or external. Each owner is a Member (or shareholder) in this Company. The Company has responsibilities to all the members to ensure that the common parts are maintained to a high standard for the enjoyment of all concerned. The Company (in effect, the residents’ or owners’ Company) is responsible for the maintenance and upkeep of all open spaces and services relating thereto. If it is an apartment block, the company is also responsible for the upkeep and maintenance of the buildings and grounds. The full responsibilities of the Company are outlined in the Company’s Memorandum and Articles of Association, and in the Management Agreements attaching to the Title documents. Similarly all owners individually have a co-responsibility to the Company to perform certain obligations as set out in the Management Agreements, including payment of service charges. Thus, the Management Company has clear responsibilities to all of its Members and the Members have definite responsibilities to their Management Company and to each other. To contact our office click here www.blockmanagement.ie |
The Company, like all limited companies, is managed by a Board of Directors or a Board of Management. It would not be possible to have all owners of an apartment block on the Board, so six are normally chosen to represent all and these are voted in at the Annual General Meeting each year. At the beginning, until all the units in a development are sold, the Board of Management normally comprises of the developer and/or their solicitor, or solicitor’s staff.
When all the units are sold, the control of the company is handed over to the owners themselves who elect their own Board.
 Blockmanagement.ie
|
Archive for the ‘FAQs’ Category
What is a management company?
Thursday, March 29th, 2012
Why should I pay my service charge?
Monday, March 12th, 2012This is a common question when residents see arrears in other properties. It is not unusual that residents feel that they are just paying for their neighbours services. While this is true and can have a detrimental effect on a development in terms of appearance and value, there are a number of avenues that can be taken to collect arrears in addition to the preferable preventative measures.
It is important to be able to distinguish between residents who cant pay and wont pay. This will also be a factor if a case goes to court. Early communication can assist greatly in preventing the escalation of arrears. Often residents who are in financial difficulty are embarrassed in having arrears and as a result ignore the problem. This needs to be dealt with in confidence and as early as possible. This results in lower arrears in combination with developing a payment plan that assists both sides.
Unfortunately, some residents may take the view that they are unwilling to pay which places increasing pressure on the residents and the management company to maintain services. If you are a lease holder in a management company, you should be aware that a resident is not entitled to withhold their service charges. Also included in the lease can be interest rates which are applied to arrears. This will depend on the lease and the management company. While the knowledge of knowing that service charges always remain due, the failure of a landlord for example to pay his/her service charge can result in higher charges to compensate until action is taken and the arrears collected.
Some examples:
A developer is looking to sell apartments in your complex which have outstanding service charges. The sale will not be able to go through until the service charges are paid in full.
I dont want to be subsidising my neighbour who is not paying the service charge. This is not an option as you are legally obliged to pay your service charge. The management agent is required to persue all arrears including taking court action and application of interest if applicable. This also places increased pressure on your neighbours who are still paying.
There are a number of methods to promote timely payment of arrears.
To find out more about how to manage the finances of a management company, call 012871905 or fill in the contact us form on
http://www.blockmanagement.ie/