What is a management company?
What is a managing agent?
Management companies employ professional firms known as managing agents to provide legal, financial and maintenance services in housing and multi unit developments. The managing agent and the management company are two very different entities. The managing agent works under the instructions of the management company.
Typical services provided by a managing agent are as follows:
- Inspecting and maintaining common areas
- Organising refuse collections
- Collecting service charges from owners
- Administrative duties such as arranging insurance cover
- Organising meetings between the management company, owners and residents
- Providing information and advice and responding to enquiries from owners
- Preparation of accounts for audit
Why do I pay service charges?
Service charges are the annual fees that property owners pay for services provided by their housing or apartment development’s management company. These pay for the upkeep of common areas and may cover other services such as refuse collection or landscaping. Most importantly they cover the insurance costs for your development. This is often the most expensive bill a management company will have each year. Service charges are not an optional payment as they are part of the terms and conditions of your contract to buy the unit. Once you conclude the contract, you have an ongoing legal obligation to pay these charges, usually on an annual basis. ? At Macfar we aim to reduce service charges year on year by sourcing the most competitive quotes and implementing our effective credit control process. We encourage all members of the management company to engage and pay their service charges. Our proven track record has shown that we can enhance a developmental and maintain service while reducing service charges.
What is the MUD act?
The primary purpose of the Multi-Unit Developments Act 2011 is to ensure the timely transfer of common areas of multi-unit developments to the owners’ management company which is made up of unit owners in the development. The Act also contains detailed provisions concerning the management and operation of owners’ management companies, including rules relating to the holding of annual general meetings; the calculation of service charges; the establishment of sinking funds and the making of house rules. The legislation applies to multi-unit developments containing residential units only and to mixed-use developments containing residential units. It will also apply to housing estates which have owners’ management companies. The Act requires that the common areas be transferred to the owners’ management company prior to sale of the first residential unit. ? Where no sinking fund has been established, such a fund must be put in place within 18 months of the act i.e. by 30 September 2012 at the latest. As regards voting rights in owners’ management companies, the general rule for residential developments is that one vote attaches to each residential unit. In mixed-use developments, other voting arrangements may apply as long as they are fair and equitable. The Act establishes a new Circuit Court jurisdiction to deal with disputes between parties.