Key Post Do you want to do something about the way your apartment development is being managed?

Threadser

Registered User
Messages
390
I often see threads on here with apartment owners complaining about how their development is being run by the managing agent. It was suggested to me that I start a thread about how to take action to ensure the money you pay in management fees is being spent wisely; how you can improve the appearance of your development and also improve the efficiency of services.

Every apartment owner is a member of the Owners Management Company (OMC) and has voting rights at the AGM. The OMC hires the managing agent to work on their behalf. The agent should always work in the interest of members. If you are unhappy with the services your Managing Agent/OMC is providing these are the steps you can take.

1. Set up a meeting with other owners who have similar concerns. (The development I live in is 70% owner occupied, I understand this can be harder when the majority of units are rented out).

2. Make a list of the main issues, contact the current directors and request they address your concerns. If you are unhappy with their response, or if there are no owners on the board, then you need to step up at the AGM, vote out the current directors and seek nominations from your group.

3. There is no particular expertise needed for this role, but you need to read up on your obligations and be honest and be prepared to work on behalf of all owners. In our board we have four directors, with a variety of differing day jobs. I am a director and a teacher with no prior experience of this type of work. You need a minimum of two owners to volunteer.

4. Once you become a director you can then become a signatory on the company bank account. Remove the managing agent from the bank account and only allow them viewing rights. Once you have done this you are in control of all the spending for the OMC. Set up an email for the directors that will allow you to communicate with each other and communicate your decisions to the agent.

5. Review the current contract with the managing agent. If you feel they are not working in your best interests then you can appoint a new managing agent, once the previous agent's contract has expired. The PRSA has a list of all licenced managing agents.

6. Meet with other agents and decide who would be the best fit for your development. Ask them to send in their tender proposals. In our case we chose a start up company run by an agent who had experience working for some of the bigger property management companies.

7. Review all the big contracts, eg, cleaning, gardening, lift maintenance etc. If you are unhappy with the service these contractors are providing, the managing agent can put them out to tender. In our case by doing this we reduced the cost of almost all services. For example our gardening contract cost €26,000 per year. We reduced this to €12,000 from another contractor who provides a better service. We were being charged €10,000 for building inspections but there were no reports of these inspections so we refused to pay and changed our maintenance contractor.

8. Review your debt management strategy. If non payment of fees is an issue, one solution that worked for us was the introduction of clamping.

8. Ask the Managing Agent to compile a list of monthly invoices. Review these and process payments. Most owner directors allow the managing agent to do this, but we prefer to process payments ourselves. It means you can review expenditure on a monthly basis and the end of year audit is straightforward.

9. Put yourselves up for re-election at the AGM every year. Unfortunately if you do the job well, you won't be voted out and it is very difficult to get someone to replace you!

We followed this approach in our apartment complex and it has worked for us.
 
Last edited:
Hi Threadser

That is excellent. A few points


1) The Board may have difficulty getting people to volunteer as directors so when you approach them, they may welcome your approach and actually co-opt you before the AGM.

2) However, if there is conflict, I doubt it's necessary to wait for the AGM. It may be possible to request or call an Extraordinary General Meeting if the matter is urgent.

Brendan
 
Re
2. Make a list of the main issues, contact the current directors and request they address your concerns. If you are unhappy with their response, or if there are no owners on the board, then you need to step up at the AGM, vote out the current directors and seek nominations from your group.
You may need to get your nominations for director positions ahead of AGM. Unless the memos and articles allow nominations from the floor, you need to get nominations to Company Secretary not less than 3 nor more than 21 days before the day appointed for the meeting.
I think people have got tripped up on this one..
 
May I ask how you "vote out the current directors"
What's the process. I'm familiar with voting in directors, just unclear how'd you'd out the existing.
 
May I ask how you "vote out the current directors"
Each Director has to resign at every AGM. They have to be nominated and seconded to continue working on the board. If no one nominates or seconds them then they are not deemed to be re-elected. If an unsuitable Director is re-elected by being nominated by those who don't share your concern's then your option is to make sure there are other Directors who can out-vote them. Having four on the board means that majority decisions will require three Directors to agree.

Re

You may need to get your nominations for director positions ahead of AGM. Unless the memos and articles allow nominations from the floor, you need to get nominations to Company Secretary not less than 3 nor more than 21 days before the day appointed for the meeting.
I think people have got tripped up on this one..
This is an important point which I forgot to mention. You do need to notify your intention to put yourself forward to be a Director in advance of the meeting.

) The Board may have difficulty getting people to volunteer as directors so when you approach them, they may welcome your approach and actually co-opt you before the AGM.
Yes, we have tried approaching people directly to ask them to consider putting themselves forward. We also put a notice out asking for volunteers when we are sending out the AGM notice. This year we offered to mentor any new Directors and hopefully a couple of owners might step up at the AGM. I never intended to take on this job, and have never received a cent even in expenses, but I think the reward comes from knowing that you are getting best value for the management fee for all owners and that the place looks well. The job is doable and worthwhile.
 
Last edited:
Directors don't need to resign at each Agm (unless you have specified that in your articles maybe?) good post though.

In my experience people prefer to moan about management Co's a lot more than volunteer their own time to do anything
 
Directors don't need to resign at each Agm (unless you have specified that in your articles maybe?) good post though.

In my experience people prefer to moan about management Co's a lot more than volunteer their own time to do anything
Interesting, I didn't know that. We understood that we had to be re-elected at every AGM. I agree that people prefer to moan rather than to take action. Many don't realise that they can bring about positive change by volunteering an hour or two of their time every month.
 
I agree that people prefer to moan rather than to take action. Many don't realise that they can bring about positive change by volunteering an hour or two of their time every month.
I call them armchair politicians :)

Its back to the point that I made over on the other thread:
But most people don’t have the time or the energy to start getting involved in the day-to-day running of a management company, unless they are retired with nothing else to do.

Just like a trade union its only as strong as its members are prepared to support it. The 'someone else can do it attitude' does not hold up then when it comes to problems in the complex. Some mé féiners can be seen to sign up to the Management Committee to just get their particular problem solved and then resign thereafter.
 
Agree with self interest. It's the worst part of apartment living. As a poster said, where they pay service charges, they expect everything to be perfect for them. What some owners dont realise is they are members of a company that has to act for everyone not just them.
 
Interesting, I didn't know that. We understood that we had to be re-elected at every AGM. I agree that people prefer to moan rather than to take action. Many don't realise that they can bring about positive change by volunteering an hour or two of their time every month.
I believe 3 years is the max term per the Mud act
 
The legal terminology is quite confusing I think. What happens in the case of a Director who has served more than 3 years and for whom there isn't volunteers to replace them. Two members on our board including myself have served more than 3 years but it is difficult to get other owners to attend the AGM, never mind volunteer for an unpaid position. This is particularly the case if they feel you are doing a good job and they are getting value for their management fee. I am conflicted with wanting to step away and also worrying that the company may not continue to be well managed if other members of the current board choose also to do so..
 
This is particularly the case if they feel you are doing a good job and they are getting value for their management fee. I am conflicted with wanting to step away and also worrying that the company may not continue to be well managed if other members of the current board choose also to do so..

A very common problem. Another is Directors having to take the brunt of annoyance if the management fees are increased which are usually due to necessary repairs.
 
A very common problem. Another is Directors having to take the brunt of annoyance if the management fees are increased which are usually due to necessary repairs.
Yes, we had to face the brunt of annoyance of a few owners over the introduction of clamping. We introduced it as a last resort as other debt management approaches were more costly,had not worked and several owners had not paid fees for many years. This disgruntled group got a few followers via what's app and arrived to the AGM to scream and roar at us. Our board was all female at the time and one of the ladies left in tears she was so upset. It's one thing to volunteer your time for the common good but another to put up with abuse from a few misguided individuals. Thankfully AGMs since then have been more supportive affairs as most owners recognise the benefits of having a robust debt management approach.
 
3. There is no particular expertise needed for this role, but you need to read up on your obligations and be honest and be prepared to work on behalf of all owners. In our board we have four directors, with a variety of differing day jobs. I am a director and a teacher with no prior experience of this type of work. You need a minimum of two owners to volunteer.

I'd just add to this that you don't need expertise, but you are expected to be fully knowledgeable about the laws associated with the position from when you start. If you do something incorrectly, "I didn't know I had to do it" isn't an excuse. It's assumed you know what you're doing.
 
I'd just add to this that you don't need expertise, but you are expected to be fully knowledgeable about the laws associated with the position from when you start. If you do something incorrectly, "I didn't know I had to do it" isn't an excuse. It's assumed you know what you're doing.
True, which is the reason why so many people are reluctant to take on an unpaid but essential role. It is important to have Director's liability insurance in place to to protect the board also.
 
Back
Top