Deputy Joan Burton today launched an information booklet on Management Companies for local homeowners with Labour Party Leader Pat Rabbitte TD and Deputy Eamon Gilmore, Labour Party Spokesperson on Housing and the Environment. Speaking at the launch, Deputy Burton said:
The Celtic Tiger has brought lots of change, not least the affordability or houses for young people and first time buyers. Many buyers are surprised to find that along with their expensive dream first home comes a new phenomenon – a Management Company.
“In Dublin West I calculate” said Deputy Joan Burton “that some 7,500 homes, houses, duplexes and apartments have been built in recent years subject to this new regime of a management company. Almost all new developments in Dublin West and on the west side of the city in general, such as Ongar, Tyrellstown, Castlecurragh and the Phoenix Park Racecourse, have a management company included in the basic home purchase contract.”
“New homeowners are left very often in limbo as the Management Company demands fees ranging from a modest €250 to €1,500 to over €2,000 per annum. The quality of service provided for these fees varies. Some managing agents carry out their duties quite diligently. Many however are making a very fast big buck on the back of new homeowners already struggling to meet mortgage repayments.
“These management companies and the managing agents are entirely unregulated and it’s the luck of the draw whether you get a fair service or get totally ripped off” said Deputy Burton.
“Labour in government will introduce legislation to regulate this whole area, including the process of the traditional “taking in charge” of estates by Local Authorities.”
“There is an unholy alliance between Government and the construction sector to foist extremely expensive management company regimes on poorly advised homebuyers. It suits government because Local Authorities can avoid providing traditional services, such as looking after roads, lighting, green spaces and pass the buck to the Management Company”.
“There is no doubt that where there are traditional apartment blocks with common corridors, hallways, and other shared services there needs to be a management company to regulate the common spaces. But this should be done in a fully transparent way with owners entitled to know exactly what their management charges are paying for. They should be free to shop around if they can get better services at a cheaper price.”
“The launch of this booklet and information leaflet today will I hope redress the balance in favour of the homeowner. Also, I hope that legal advisors such as solicitors and mortgage agencies and financial institutions will launch an information campaign to let new homebuyers know just exactly what they are committing to when they sign up for a home purchase contract that carries a management company condition in the small print.”