Inactive Management Company

[elcato]

I'm imagining a situation where there is a leak in the roof, the insurance doesn't cover it, the management refuses to repair it because there is no money and I can't do it myself because the MC doesn't let me to, all this while paying the mortgage: this is a nightmare and unless I misunderstood you there is NOTHING I could do about it!

How they do even think of a system like this!

Katrina. I think you are really looking way too much into this. Back in the crash times people had bought silly places and didn't even consider management fees. This basically caused a lot of MC to be indebted and not get fees paid. Also dodgy builders were skipping regulation which didn't help. Things have changed now with a lot of actual sales gone through which forces any arrears to be paid up so in general they are in a healthy state. One bad case doesn't make all cases bad. As JohnJay's has posted above it should be enough for you to make a call on this. Btw I would add a check to see how many owner occupiers also - the more the better as they will like to actively keep the place looking good. As I stated in another thread, you will get a copy of the last financial year's statement and check out the debtors figure and a sinking fund. If the first is high and the second is low (without a valid reason) the avoid. But don't be put off. I have a place that needed 100k to fix the roof two or three years ago. This basically wiped out any sinking fund and got arrears because they suddenly need 5k a head to do the work. We still have a few on arrears but we do have a spanking new roof which shouldn't cause grief for a long while.

 

[R3alEstate]

thanks elcato your post helped a lot, I feel more confident. In this market is very difficult to keep paying rent but I can't afford an house either so I'm forced into buying an apartment.

Sorry to bother you so much but when the roof needed 100k to fix how did you ask for it? How could you convince the MC to collect the fees? Unless I misunderstood what happened

Thanks,

Katrina

 

[elcato]

Sorry to bother you so much but when the roof needed 100k to fix how did you ask for it? How could you convince the MC to collect the fees? Unless I misunderstood what happened

I didn't instruct them. The directors met up and decided this needed doing. They just instructed the management agent to co-ordinate payment from all the owners. The ratio of owner occupiers is quite high probably around 50% in the actual block so while we had a few moans people in general knew what had to be done. The directors called an EGM afaik. I accepeted it had to be done and ponied up. They put a payment plan in place for people who could not afford the lump sum.

 

[R3alEstate]

Thanks this really helped

 

[Early Riser]

Thanks Leo, to be honest I was feeling like I was making a huge deal out of it, and the estate agent was telling me I was overreacting as there are loads of estates like this!! I have been onto them and said that unless I have information regarding management company, I will be out!!

Any updates, Marie ? What did you decide to do ?

 

[R3alEstate]

Hi Early Riser, sorry for the late reply, I was sick these days.

Still not sure, I'm trying to understand more and I'm stalling but super afraid to lose the apartment. Everyone I speak with say that I shouldn't worry to much about things like a leak in the roof because the OMC has to deal with it, but it's easy to say when you have your own house and don't leave in an apartment block.

My main fear to be honest is that if there is a leak in the roof (for example but any issue around common area), I can't touch it, they won't and I'd endup with a mortgage to pay and nowhere to leave, which will be my end!

Because no agent will answer my questions before to buy this or another apartment then I have no other choice than risk and hang myself if I'm unlucky.

Dramatic? Don't know, probably the laws should be changed around OMCs rather than asking purchasers to deal with problems bigger than them

Thanks again for your help,

Katrina

 

[Leo]

Everyone I speak with say that I shouldn't worry to much about things like a leak in the roof because the OMC has to deal with it

Just note in some cases it can take a battle to make that happen.

 

[R3alEstate]

That's really bad! In the meanwhile what happens? The house floods? Really don't have any more words