Management Fees €1,600, Mgt agent wont accept payment in installments/payment plan.

C

Chubbs

Guest
Hi,

I have just received a request to pay the management fees for my apartment in Stepaside for €1600. When I asked the Management Agent could it be paid monthly or by instalments, I was told it had to be paid in full! I'm not saying I'm not going to pay the fees, just that I can't pay for it all at once. Has anyone any advice on this matter?

Thanks In Advance.
 
Check your lease agreement. Most of them will state when and how the payment must be made.
 
Thanks Mark will do. Just I've heard some management agents are flexible with payments, mine obviously aren't.
 
We offer installments in our development. To be honest, in this day and age there is no real choice but try and be flexible. Might be worth your while contacting one of the directors of the management company or residents association if you have one and also bring the subject up at the next AGM. If you can't pay the full amount immediately, you can't pay. At least you are not just refusing to pay.
 
chubbs

its probably a case that they were flexible in the past and peopel took advantage and they are now in a position where they cant affford to allow credit terms to people. because unlike you who is willing and able to pay (granted over a period) others couldnt be bothered at all and then its folks liek you that bear the burden by being forced to pay in full and on time. Our MC did the same thing because there's people going back years that havent paid a penny. they notified us early November that teh bill was due in full in January.

as was said check your lease agreement and see what the terms are in that, it usually details the payment plans availible. in ours its on or by January 1st of each year or some such date as decided by the directors. that allows the directors to enforce Januaruy 1st on everyone, but for those struggling to survive on welfare it also allows the company to work with those owners and come up with a payment plan.
 
redfedora said:
chubbs

its probably a case that they were flexible in the past and peopel took advantage and they are now in a position where they cant affford to allow credit terms to people. because unlike you who is willing and able to pay (granted over a period) others couldnt be bothered at all and then its folks liek you that bear the burden by being forced to pay in full and on time. Our MC did the same thing because there's people going back years that havent paid a penny. they notified us early November that teh bill was due in full in January.
Click to expand...

We actually found the opposite in our place. We demanded them to be paid in full and things were fine until 2008 when the recession hit. Arrears started to climb so we introduced monthly payments (has to be direct debit). Has made a big difference. It is more work for the Agent so some of them charge a surcharge.
 
hey

Our management company are very flexible, they accept yearly, bi yearly and monthly payments. I'm on the committee and it proves very popular with 80% of people paying monthly which is a very positive thing if you ask me.

J
 
Why not pay what you can now and indicate your payment plan for the year ?
The Management Companies have so many problems getting paid that I would say they wont hassle someone who gives them a payment plan.
After all this is money that is being paid in advance for services not yet supplied in full
 
Yorrick said:
they wont hassle someone who gives them a payment plan.
Click to expand...
agreed, once its a reasonable payment plan as in clear the mone in 4-6 months and not I'll pay €10 a week

Yorrick said:
After all this is money that is being paid in advance for services not yet supplied in full
Click to expand...

actually its not, insurance premiums should be paid in full or else there is an additional cost associated with it, your car for example costs more if youy pay by the month, the same applies for the block insurance policies. it can range from 5 - 15K of additonal cost to the company to pay this way. So if all the money came in in full at the start of the year then this could be paid in one lump thus saving that additional finance cost, 5 -15K isnt to be sniffed at

other contracts that are a flat fee contract can be also be a pay in full in advance. but some suppliers will except monthly invoicing.

not forgetting that by allowing people to pay by standing order means that your company will incur additional transaction costs on the bank account for each standing order payment recieved. so if someone pays over say 10 months that could be a couple of euro for one person, multiply that accross the whole estate and it becomes a couple of thousand. where as if its paid in full on one date then you only have 1 standing order charge to be paid for each owner. also if you pay by cheque you will mopst probably be charged for each cheque so if you pay your grass cutting in 12 installments, thats 11 additional cheques that need to be paid for. it sounds like a pittance but all these additional costs add up.

never mind that it makes it easier for planning large scale refurbishment projects because you know exaclty what is in the bank and know that the cost can comfortabley be met and not hoping and praying that you wont be faced Mags and Bobby deciding not to pay for a couple of months coz Katie has her holy communion and wants a strech limo and a spray tan
 
"you wont be faced Mags and Bobby deciding not to pay for a couple of months coz Katie has her holy communion and wants a strech limo and a spray tan"

or maybe Sorcha and Sebastian are having a dual graduation from Trinners and they want upstairs in Rolys booked for a goys bash the night of the leinster game
 
I think it's a bit unrealistic of the Management Company/Agent not to accept payments in instalments. Ours have become much more flexible since the recession. If they put their foot down too much a lot of people won't pay because they simply can't get all the money together in one go. Then they will face legal charges on top of everything. People have enough financial problems nowadays and the Management Agents should work with people to come up with a payment plan. Otherwise there'll just be a lot of people putting their head in the sand and not paying anything at all.
 
Make a payment now of whatever you can - they are not going to say no. Start paying regularly then - what are they going to do? Ye could be discussing and negotiating for weeks / months so start now and then some of the work will be done. Better to start pay and be seen to be making an effort than to be one of the people not paying at all.
 
I agree , start making payments immediately. You have to pay it , do it in smaller bites if you can manage it better that way. They are not going to say no to the money
 
Deciding on your own payment plan without discussing it with the management company is not the way to go. Check the lease as the management company may be obliged to offer you monthly or quarterly payments. Write to the management company and explain that you need to pay in installments. There is not doubt that the management company is not being smart by demanding one payment. It is important that you understand your entitlements and communicate in writing.
 
Chubbs; I am a managing agent myself and surprised you are not allowed pay in instalments. Since your agent said you have to pay in one go results in them not getting any money into the management companies account at all until you have had the time to raise the necessary amount. This will directly affect the cash flow of your company. If you were given the option to pay in, lets say, 4 instalments, the agent will have a much better grip on when, and on how much, money is coming into the account and they can budget accordingly. They are probably against the idea of accepting instalments as it would involve more administration work; at the end of the day it is only a matter of looking at lodgements on a weekly bank statement and updating their accounts. My advice to you is the same as "ontours" ; set up a standing order regardless of what they say.
 
northbrook said:
. They are probably against the idea of accepting instalments as it would involve more administration work;
Click to expand...
or they could be simply enforcing the terms of the head lease which might specify payment on a day. they are most probably following instructions from the directors of the MC, the company could be in severe financial difficulty and could have a large number of creditors with possible legal action pending for outstanding debt
 
This can really depend on the developement and the person in question. Have you made a financial arrangement with the company and then did not stick with it by any chance??

Most leases strictly state that the management fee is due 30 days after the invoice. I would say stay in contact with the managing agents whatever you do. Make a substantial payment 1/4 at least and state again that you dont have the means to make full payment but will clear it as quick as possible. If they take you to court after this you will be in a strong position as the judge will look kindly on your willingness and effort to pay.

The last poster is correct. There are some developements which get into a cache 22 situation where a lot of owners dont pay, so the management agents are starved for cash which leads to repairs and maintenance jobs not being completed which leads to more owners refusing to pay. In that scenario they may be forced to take a hard stand in order to get the much needed funds in.
 
You must log in or register to reply here.
Back
Top