Maintenance Fee Caluculation

[DubShelley]

Hi All,

I'm looking for some advice on the way our maintenance fees are calculated. We have been told that our fees are calculated on square footage and not on the number of bedrooms but having looked at the calculations more thoroughly, this does not appear to be the case. I own a 3 bed apartment (101.4m2) and therefore pay the highest fees (€2.4K) while my neighbour owns a 2 bed apartment (102m2) and pays considerably less €1.7K.

It appears that they have taken the square footage for all 3 bed apartments and averaged them out and the same for the 2 bed and 1 bed. So because there are a few very large 3 beds, our average is pushed way up to 150m2.

I have had a look at our lease agreement and it states;
“A” equals the deemed internal square footage of the Apartment erected on the premises (including the patio / balcony”.

So my question is, if our lease agreement specifically states that the fees are calculated on square footage, can they legally ignore this and actually base it on the number of bedrooms?

We have an EGM tomorrow night and I will bring it up there as well but it is a hard battle as out of the 95 apartments in the complex, there are only ten 3 beds so we have a lot of owners against us who fear they will have to pay higher fees.

Thanks,
Shelley

 

[Leo]

If your leaase agreement states you should be paying per internal square footage, then that's what you should be paying. Your solicitor might be the best person to tackle this as it would appear you have been overcharged to date. This isn't a matter that will have to be voted on by the other owners, but one of correct enforecement of the legal agreement.
Leo

 

[zenga]

Hi All,

I'm looking for some advice on the way our maintenance fees are calculated. We have been told that our fees are calculated on square footage and not on the number of bedrooms but having looked at the calculations more thoroughly, this does not appear to be the case. I own a 3 bed apartment (101.4m2) and therefore pay the highest fees (€2.4K) while my neighbour owns a 2 bed apartment (102m2) and pays considerably less €1.7K.

It appears that they have taken the square footage for all 3 bed apartments and averaged them out and the same for the 2 bed and 1 bed. So because there are a few very large 3 beds, our average is pushed way up to 150m2.

I have had a look at our lease agreement and it states;
“A” equals the deemed internal square footage of the Apartment erected on the premises (including the patio / balcony”.

So my question is, if our lease agreement specifically states that the fees are calculated on square footage, can they legally ignore this and actually base it on the number of bedrooms?

We have an EGM tomorrow night and I will bring it up there as well but it is a hard battle as out of the 95 apartments in the complex, there are only ten 3 beds so we have a lot of owners against us who fear they will have to pay higher fees.

Thanks,
Shelley

I would advise you to take a look at your lease agreement. Under the terms of the MUD Act 2011 the members must be shown documentation which clearly states the way their service charge is apportioned.

Some lease agreements are extremely easy to figure out and more are complex with a number of different calculations with extreme legalistic language contained.

My Advise would be to check your lease agreement, verify it is apportioned on sq footage, secondly verify your sq footage and calculate the correct amount you feel you should be paying. Only then contact the managing agent.

 

[Yorrick]

Your lease should indicate the method of payment. e.g it may state that you will pay a specific percentage of the overall management fee.
I pay 2.11% of the annual fee as per my agreement. This is for a one bed. Those who have a two bed pay a higher figure. The figures were initially calcualted on the basis of what percentage of the complex you own.pe