Unpaid Service Charges: An Unfair Burden on Compliant Property Owners

Submitted by Aisling Keenan on Tue, 04/03/2012 - 10:45.

UNPAID SERVICE CHARGES: AN UNFAIR BURDEN ON COMPLIANT PROPERTY OWNERS

The successful working of a management company is dependent upon the co-operation of all members. Without this there is an imbalance of responsibility, as is the case with the significant number of property owners who are neglecting to pay their service charges, placing an additional financial burden on compliant property owners who participate in their management company. The Multi-Unit Development Act 2011 promised further protection for property owners, however no amount of legislation or mediation will recover debts due by bankrupt property owners in the short-term.

Fifteen years ago apartments were a relatively new phenomenon in Ireland. As the addiction to property took hold, apartments in which the operation and maintenance of the structure and grounds are overseen by a management company were purchased in multiples by investors, many of whom are now delinquent in their duties as members of these management companies. These duties include the legal obligation to pay the annual service charge that goes toward the smooth running and maintenance of the property. This obligation is increasingly difficult for the compliant property owners saddled with the additional burden of new taxes introduced in the government’s recent budgets and austerity packages.

The situation is further exacerbated as there is little or no recourse for the compliant property owner. With the exodus of the property developer from almost all sites around the country, including finished and unfinished developments, property owners have had to put their hands in their own pockets to ensure basic and necessary utilities are provided and common areas are finished to acceptable standards. These abandoned responsibilities include finishing installations of the sewerarge treatment plants, laying tarmac surfaces and landscaping. In addition to these unexpected costs, now property owners are forced to contend with the legacy of debt in their management company by the reckless investor.

An apartment block in a small and vibrant country town with 30 apartments built under the Section 23 Tax Relief Scheme in 2005 attracted such wayward investors. The town was home to hundreds of young foreign construction works all looking for rented accomodation. One investor borrowed 100% of the finance and paid circa €200,000 per apartment. Services Charges were paid in the first year as this was a condition of sale. But for six years now this property owner has not paid any service charges. Once the econonmic crisis hit and the construction work dried up, the workers left the town leaving behind them an excess of vacant property combined with the oversupply of newly constructed developments. Today these apartments lie vacant, in such a 'Section 23' location. The recent census results showed that this region has the highest overall property vacancy rate in the country with over 30% of property vacant.

To complicate matters even further, the above investor is ‘in NAMA’. What does ’in NAMA’ mean to property owners in this apartment block who are funding this investor’s unpaid service charge bill that currently stands at 100% of the annual budget. ‘In NAMA’ means nothing to them. There is no accountability or allowance ‘in NAMA’ for unpaid service charges. We have received correspondence from NAMA advising us that they are not responsible or accountable for service charges on properties. Service charges do not fall within their brief. Instaed they fall on the doorstep of the compliant property owner. They are picking up the tab. Of the other 25 apartments there are ten owners, one of whom is also in arrears for the past five years and is currently unemployed. The other nine property owners struggle to keep the bills for the entire development paid. The entire budget to manage the development annually, including a 10% sinking fund, is approximately €35,000.

Of course unpaid services charges is only one challenge within the wider torrent of issues that property developers have left in their wake. On top of management company finances, there are unfinished housing estates with unfinished roads all across Ireland, and no amount of government legislation will change this. It is only an improvement in economic conditions in the country that will see changes in this area. The economy may have hit the dirt road but it’s the bumps and potholes that are shaking us to the core.

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[url=https://www.google.com/] google [/url]

Thomson (not verified) Says:
Tue, 03/21/2023 - 06:19

Every dollar of eligible purchases made using your American Express Green Card will earn you one Membership Rewards point. & Visit the login page on the American Express website or mobile app to access your American Express credit card account.The easiest way to activate your Credit Card is via the Amex app15 or website. You can also register your American Express Online Account at the same Time.
http://sites.google.com/americanexpreslogin.com/amerianexpreslogin/home

Jack John (not verified) Says:
Tue, 03/21/2023 - 06:10

Verifying your financial information may allow you to finish verification if your Venmo Login account is linked to a bank or credit card. If this choice is available to you, select "Additional alternatives to authenticate your identity" and then follow the on-screen instructions (this backup option is not available for all users).

Anonymous (not verified) Says:
Tue, 03/21/2023 - 05:58

Sign in with your Crypto.com account to manage your Crypto.com Wallet, buy and sell cryptocurrencies and more
Crypto.com Sign in | aol mail |

Thomson (not verified) Says:
Tue, 03/21/2023 - 05:23

Jack John (not verified) Says:
Mon, 03/20/2023 - 11:21

There could be different factors that make an exchange a perfect one. If safety is your primary concern while using a crypto exchange, then I would suggest you use Kraken.com. After signing up, you just need to use your Kraken Login credentials and you can start your crypto trading journey right away.
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Amelia (not verified) Says:
Mon, 03/20/2023 - 11:09

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Chardham Yatra (not verified) Says:
Mon, 03/20/2023 - 08:41

I must thank you for the efforts you have put in writing this blog. Chardham Yatra By Helicopter

Bank Of America Login (not verified) Says:
Mon, 03/20/2023 - 06:13

People who are new at Crypto Currency need to create a new account to start buying, selling, and storing cryptocurrencies. Read More:-
Bank Of America Login
PayPal Login

janne milton (not verified) Says:
Sun, 03/19/2023 - 15:47

If you're looking for a quick and easy way to log in to your PayPal Account, you've come to the right place. In this blog post, we'll give you a step-by-step guide on how to log in to your account, as well as some troubleshooting tips in case you run into any problems. So whether you're new to PayPal or just need a refresher on how to log in, read on for everything you need to know.
PayPal login
PayPal login

Jannifer (not verified) Says:
Sat, 03/18/2023 - 11:04

When you sign in with the true Kraken Login credentials and you get access to your crypto trading portfolio, you can start making transactions with it. While making the transactions, you will be asked to enter your 2FA login code so that the transaction can be authorized, making it safe for you.
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Gemini Login
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Amelia (not verified) Says:
Sat, 03/18/2023 - 09:50

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Anonymous (not verified) Says:
Sat, 03/18/2023 - 06:32

Thanks for the great post you posted. I like the way you describe the unique content. The points you raise are valid and reasonable. I am a tech support expert telling you about.
Coinb | Saitamask

Roy (not verified) Says:
Sat, 03/18/2023 - 06:15

Thanks for the great post you posted. I like the way you describe the unique content. The points you raise are valid and reasonable. I am a tech support expert telling you about.
Coinb | Saitamask

Crypto.com Login (not verified) Says:
Sat, 03/18/2023 - 05:43

Initially using Monaco Coin (MCO) as its native cryptocurrency, the Crypto com ecosystem has switched to adopting CRO coin for all of its in-network features. All Crypto.com customers were urged to swap their MCO into CRO on the Crypt.com Login app by November 2020, even though MCO was first utilized to run the trading application on the website.

tango (not verified) Says:
Fri, 03/17/2023 - 14:04

Robinhood Login|| Robinhood Login|| Robinhood Login|| Robinhood Login|| Robinhood Login|| Robinhood Login|| Robinhood Login|| Robinhood Login|| Paypal Login My Account|| Paypal Login My Account|| Paypal Login My Account|| Paypal Login My Account|| Paypal Login My Account|| Paypal Login My Account|| Paypal Login My Account|| Paypal Login My Account|| Webull Login|| Webull Login|| Webull Login|| Webull Login|| Webull Login|| Cex Exchange|| Cex Exchange|| Cex Exchange|| Cex Exchange|| Cex Exchange|| Luno Login|| Luno Login|| Luno Login|| Luno Login|| Luno Login|| Ftx Exchange|| Ftx Exchange|| Ftx Exchange|| Ftx Exchange|| Ftx Exchange|| Ftx Exchange|| Ftx Exchange|| Wealthsimple Login|| Wealthsimple Login|| Wealthsimple Login|| Wealthsimple Login|| Wealthsimple Login|| Wealthsimple Login|| Wealthsimple Login||

tango (not verified) Says:
Fri, 03/17/2023 - 14:04

Jannifer (not verified) Says:
Fri, 03/17/2023 - 11:00

When you create a new Kucoin Login profile and make your first transaction, you get to know that the platform does not charge you any deposit fee. If you haven't signed up yet, go to the official website, fill in the sign-up form, and there you go.
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Roy (not verified) Says:
Fri, 03/17/2023 - 07:07

Thanks for the great post you posted. I like the way you describe the unique content. The points you raise are valid and reasonable. I am a tech support expert telling you about.
Coinb | Saitamask

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