Management Fees

A

aemcar

Guest
I'm a first time buyer and i've just found the perfect apartment.

However the estate agent has just informed me that there are 800euro management charges. Its an own door apartment and there are no communal areas or gardens. It doesn't include bin charges.

Is this standard or does anyone have any idea what these charges are for? I'd appreciate any help, thanks.
 
Possibly block insurance (fire), sinking fund (for what?), but it certainly sounds high if there are no gardens and refuse charges.

Is it a second hand apartment? If so, ask for a copy of the latest audited accounts.

If it is new, I would ask what the money is going to be used for-don't get into a situation where you are paying something for nothing, as appears to be the case here.
 
just moved out of an apartment about 6 months ago and the charges were 600euro a year. same situation as yourself in that the bin charges were not included, and no gates or lifts etc. my brother owns a duplex in a complex which does have gates and lifts etc and it costs well over 1000 a year. the management company will have to put money into block insurance, general landscaping, and other maintenance bits and pieces. if the management company is any good then they will submit a balance sheet to all the occupants letting you know how much is spent on what, and what there cut is. you have to remember as well that the management company has to make a profit out of it... if they dont submit a yearly balance sheet you are entitled to get a copy of it so request the same... also, if ur purchasin this property and it is second hand ensure you get the sellers to clear their account before you sign contracts, as you will be stuck with the full bill when you occupy it.
 
Ask for a breakdown of the charges - e.g. the management company budget for the year. That should clarify what they are for. Read some of the many other posts on management companies and agents to avoid any confusion on this topic.
 
Thanks for the advice, i was concerned as to whether this was standard.

The apartment is in a converted house and so is only 2 stories and no lift. The apartment im interested in is on the ground floor n i think the other apartment upstairs has its own door so theres no communal areas. I thought 800 was quite steep for no gardens, communal areas or bins.

I'll ask the estate agent to provide the accounts as to where the money goes.
 
Also, have an apartment in a converted house (although there is a shared stairway). Ignoring those expenses associated with the shared hallway …
-Building/Block Insurance is expensive since house is 200 + years old (approx 400/500 per apartment).
-Annual Returns have to be filed, accountant charges 600 per year.
-Bank Charges
-Window Cleaning.

If we could purchase individual apartment building insurance and didn’t have to file accounts, service fee would be very low. I think 800 sounds reasonable.
 
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