Pitfalls and Risks

A Pitfall is a hidden or unsuspected danger or difficulty, and in property management there are many. This is because apartment living in Ireland is relatively new, our parents didn't live in them and little information was available to purchasers. Exposure to the chance of injury or loss is a hazard or dangerous chance. It's not worth the risk.

Employ and rely on a professional managing agent. It has taken us years to develop our expertise, a huge investment in qualified people, building experts and systems - to be able to guarantee our clients a professional service that not only looks good but also secures the value of their development.

Facilities Management Magazine recently published an article from Siobhan O'Dwyer on questions to ask when hiring a Managing Agent. To download a copy Click Here.

Carefully read through our What to Expect and Our Services Section and see if those services are being offered to you.

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The Pitfalls - read more
Some Sobering facts about service charges and how they attribute to the value of your property - read more
Some sobering facts about being a director or a committee member - read more
Critical building maintenance requirements which incur risks if neglected - read more
Significant expertise is required when procuring and managing the building Insurance - read more
Unpaid service charges incur significant consequences can occur - read more

The Pitfalls

Any one can call themselves a Property Manager , there are no entry requirements so 'Pop up' firms were common during the property boom and frankly they couldn’t and didn’t deliver, and have left many developments with a lot of problems.
Their poor services undermined the value of good property management and gave the industry a bad name.
Without adequate information and a regulatory body consumers often choose these 'pop up' firms because they offered the cheapest service charges.
Pending the enactment of the new Property Services (Regulation) Bill 2009 its still hard for consumers to differentiate one agent from another or to know what to expect from a professional firm.
Few consumers appreciate the extent of the services needed in their development or how to ensure quality operations and sustained property values.
Few management agents have qualified staff with the knowledge and skills to competently manage all types of property efficiently, safely and in accordance with the law.

Some Sobering facts about service charges and how they attribute to the value of your property :

With Service charges there is no “one size fits all” - every building is different
Assessing the service requirements and costs requires professional expertise
A cheap service charge may not represent good value at all
Inadequate service charges lead to dilapidated buildings which cost a lot more work, money and time to fix after the fact
Some dilapidations may never be fixed as retrospective funding may be cost prohibitive and difficult, or simply unfordable
Dilapidated apartment buildings are difficult to sell
Sometimes the only means to sell or trade out is to restore value through proactive management and restorative maintenance which few are able to finance
It costs a lot less to provide an adequate service charge and maintenance program from the start than restoring a dilapidated building many years after the fact
A vital role of a professional agent is to demonstrate how the best possible value for money can be assured.

Some sobering facts about being a director or a committee member:

Failing to submit the management company Annual Audit of Account to the CRO (Company Registration Office) will lead to the company being struck off and owners not being able to sell their property at all . (See ODCE page 198). Read more
Directors have very significant fiduciary duties – these are legal obligations and liabilities.
A Committee Member 'involved' in the day to day decision making may be considered to be a 'Shadow Director with similar legal obligations and liabilities. Read more
Failures to up hold the management company's service responsibilities or negligence in their undertaking may lead to the risk of personal legal liability.

Critical building maintenance requirements which incur risks if neglected:

Water Supply Tanks must be serviced and cleaned regularly - otherwise there is risk of harmful bacterial growth (legionnaire’s disease) in the system. Read more
Fire safety including fire detection and alarm systems must be serviced, maintained and periodically audited under a Fire Safety Management program. A fire may lead to fatalities and the risk of criminal charges Read more.
Fall arrest systems used for access to undertake high level works such as window and gutter cleaning require to be inspected and certified annually. A failure to ensure this is completed and that all contractors operate safe systems, in the event of an accident, may lead to legal liability.
Lighting systems, the 2^nd highest expenditure item generally in a building can often be inexpensively adjusted and altered to conserve electricity consumption. Failures to ensure savings may be considered negligent and lead to legal liability.
Roofs should be inspected annually to identify any weather damage or deterioration- roof material is easily fixed but not so if neglected over time...
Lifts and escalators have huge maintenance requirements and spending a little more on a comprehensive maintenance contract may incur significant savings over the lifts standard 30 year life span.
A stitch in time ...otherwise known in the industry as “Preventative Maintenance” is essential and saves a lot of money particularly when it comes to roofs....
Failures to up hold these responsibilities or negligence in their undertaking may lead to fatalities and the risk of criminal charges.

Significant expertise is required when procuring and managing the building Insurance:

Question: How do you quantify the buildings sums Insured? What is the Average Clause? What is Subrogation? Apart from Fire, what other Risks need cover? Is the Policy wording suitable and adequate? What are all the technical matters that effect the cost and efficiency of the insurance cover ?

Answer: This role requires expert handling by a suitable professional managing agents, it cannot be undertaken without expertise or by the broker.

Unpaid service charges incur significant consequences:

A reduction in the services or standard of services to the building results in serious negative impact on the value of the development.
Compliant owners must pay more to make up for the shortfall of delinquent owners. Read More on service charges.