Publishing Date; Thursday the 30th day of January 2025.

 

Q I am in my 70's and lived in same apt for 20 years.

Previously we managed the apartments 3 blocks and kept the costs reasonable. Around 25 apts. 

Several apartments are let, few owner occupied and several owned and let by relatives of the owners of the present management committee. The recent meeting voted to increase costs to €3,000. I feel there is a conflict of interest here.

I am a pensioner and these costs are causing me distress. Is there any way to monitor the management, costs etc?

Many thanks, 

PS The majority of private let owners don't get involved with the committee. 

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A. A good starting point for your owners’ management company (OMC) to navigate the budgetary complexities it faces would be to have an appropriate representation of members on the board of directors. A blend of directors of owner occupiers and investors benefits all the members with a balance of long-term investment requirements and day to day expenditure.

 

In your case, participating in the management of the development as a director will ensure that pensioners are represented, and your years of knowledge can be shared. The process of setting proposed budgets each year would include your views as a director and provide you with all the information that is available into making up the budget for the next year.

 

Budgets should have an informed allocation for both the annual projected costs for general current account expenses and future costs funded and available within the separate Sinking Fund account. A Chartered Property and Facilities manager would send detailed monthly reports to the board of directors allowing for the monitoring of costs. Members of the OMC would have a much smaller quantum of information than say a director who is involved in regular operations.

 

The budget for each year needs to be sent out to all members in advance of the meeting. This allows the members to review and consider the proposal before a decision at the meeting is made and voted on. If the agent of the development is proposing to provide numerous services inhouse as well as their agency, it is best practice as per the SCSI Code of practice “Property Management in Multi-Unit Developments” to show the services in the budget that are not being procured in the open market. This provides transparency for all the members who may not be aware of all services being contracted in the binding letter of engagement that only directors would tend to see.

 

The democratic process of voting for a budget by the members is not perfect, there will be views and opinions on both sides of the spectrum guided by exit strategy, onsite comfort and available means.

 

 

The democratic process of voting for a budget by the members has its shortcomings as all will not agree. There will always be conflicting views and opinions on different issues depending on people’s priorities and concerns. Some may be focusing on an exit strategy, for others their chief concern may be onsite comforts or as in your case tighter cost controls.

 

Paul Huberman FSCSI FRICS is a chartered property and facilities manager, and a Fellow of the Society of Chartered Surveyors Ireland and the Royal Institute of Chartered Surveyors. 

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Author: Paul Huberman of H&H Property Management Consultants Ltd

Publish Date: 30/01/2025