A management company is a corporate entity formed for the purposes of management and administration of a multi-unit development. This is usually a company limited by guarantees. It is a legal requirement to have a management company in place in multi-unit developments.
The management company consists of all owners of properties in the development.
Like all limited companies, the Board of Directors is responsible for all key decisions in the management company.
To become a director of a management company you must put your name forward at an Annual General Meeting. Your nomination must then be voted by other members of the management company.
It is the role of the directors to act in a voluntary capacity in the best interests of all the members of the management company. These responsibilities include ensuring compliance with all statutory and regulatory obligations on the management company.
Usually, at the start of an estate / development, an ad-hoc owners’ committee is formed to liaise with the management agent and / or developer on estate management issues. Although the owners’ committee has no legal standing, the committee members often volunteer as directors when the developers eventually hand over the estate to the members.
If you would like to get involved in the running of your management company, please contact Circle VHA.
The management company insurance policy (known as the “Block Policy”) usually covers, inter alia, the external structure of an apartment block, the common areas, damage caused by a burst water pipe, subsidence, vandalism, storm damage. It is important that tenants thoroughly check the policy before submitting a claim.
If a tenant wants to make a claim under the block policy, firstly they must contact the management agent. The agent will forward the claim to the brokers, who will appoint a loss adjuster. It is the loss adjuster who decides whether a valid claim exists.
Insurance policies normally have an excess limit for an insurance claim. The excess limit means that a claim can only be made for an amount greater than the limit stated on the policy. This varies across schemes and is influenced by the level of claims made. The excess amount can range from a limit of €500 to over €2,000 per claim.
For further information on your rights as a member of an Owners’ Management Company, please contact the Competition and Consumer Protection Commission.
If you have any complaints / queries, please email email@example.com or contact our office by phone at 01-4072110.
As a member of the management company you are entitled to view the company’s audited accounts, copies of the block insurance policy and any other relevant financial and operational information.
Every year, you should receive a newsletter giving the breakdown of the costs involved in the management of your estate. This should include a proposed budget, description of services and the third party contractors used.
You should contact your solicitor to advise on the legal implications of living in a privately managed estate. You should also contact your managing agent to ensure that your solicitor has forwarded details of the purchase / sale to the management company.
A sinking fund / building investment fund is a reserve fund established to finance long-term maintenance projects that arise over the lifetime of a multi-unit development. As these costs can be very expensive, it is essential that a sinking fund is created for all management companies to ensure that the members do not have to pay large levies for these works when they arise.
The Multi-Unit Development Act 2011 improves the regulation of multi-unit developments and the governance of management companies in such developments.
The Act is designed to give greater transparency and control to homeowners in multi-unit developments. It aims to tackle many of the issues that have arisen in the area of service charges, handover of estates and general meetings.
The Property Services Regulatory Authority aims to regulate property professionals involved in the area of selling, management and letting of property. The MUD Act 2011 established a new licensing system, standards of education and procedures for investigation of malpractice. All managing agents have to be registered and approved by the Property Services Regulatory Authority. Circle VHA is an approved managing agent with the PSRA.
You must pay your service charge as soon as you receive notice from the management company that it is due.
If you are in arrears, please contact your management agent as soon as possible. Failure to do so may result in legal proceedings being taken against you by the management company.
Yes, the service charge remains on your account until paid. The buyer’s solicitor will insist that the property is not conveyed until all outstanding service charges are discharged.
This may be because your solicitor has not contacted the management company to advise them that you now own the property. Please contact the management agent to inform them.