Posts Tagged ‘estate management’

Why should I pay my service charge?

Monday, March 12th, 2012

This 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

Who are the management company?

Thursday, January 13th, 2011

A common mistake when residents are unhappy with the service they are receiving, they often blame the management company as if it were nothing to do with them.  If you are in a managed estate, then all residents are members of the management company, that includes you.  The managing agent is employed by you the residents which is the management company and the destinction between the two is often mistaken.  Dont worry this is a common mistake.  Unfortunately, there remains a lot of unhappiness about how estates and developments are being run.  Often this can be the management company but also the agent.  If a resident is not happy with the service whether thats the managing agent of companies fault, a common way of trying to voice their concerns is to hold back their service charge.  As a member of the management company, this option is not open to you and you could end up paying additional interest charges. We suggest that if you are not happy with how it is run, then you need to either contact the directors of the management company(usually residents although developers may remain in charge if it has not been handed over) or more actively volunteer to become a director of the management company.  This can happen by getting elected by the residents at the agm.  Normally any interested parties are voted in at an agm.  Main condition is that you must not be in arrears.

For more information on management companies or managing agents call 01 2871905 or e  mail

See also for more information

Is the service charge the same each year?

Sunday, September 27th, 2009

No, the budget for the year will vary, depending to the upcoming running costs of the complex. The cost may rise in some years due to inflation and exceptional items but, on other occasions, it may be lower than the previous year.  Some costs have come down in recent times as more competitive quotes are received making decreases in the service charges possible.