Property Management Ireland currently act as management agent for several multi unit developments, apartment blocks, commercial units and Student Villages in a many locations in and around Limerick city, a sample of portfolio includes:

 

What is an Owner Management Company

An Owner Management Company (OMC) is a company set up to manage and maintain the common areas in a development comprising 5 or more units (multi-units) which share facilities & amenities. Each unit owner is a member of this company.

 

The OMC is legally bound to comply with company law and must have an AGM, remain solvent and keep a proper set of accounts.

 

Why do we have an Owner Management Company?

Kilteragh is what is known as a multi unit development and there is a legal requirement to have a management company in place to manage, maintain and insure the common areas in the site as well as retain legal ownership of the common areas when the common areas are transferred in compliance with the Multi Unit Development Act 2011.  

 

What do you mean by Common Area?

The common area is any area which is available for use by more than one owner ie grass, grounds & landscaped areas.  In the case of the apartments, the common areas include stairwells, roofing, structural walls & foundations. Also included are all ducts, conduits, tanks, sewers, drains, pipes, wires, other than those serving only one unit in the development.

 

What is the Management Company responsible for?

The management company is responsible for the maintenance, upkeep and insurance of the common areas. Each owner pays an annual service charge in order to pay for this upkeep.

 

Why do I have to pay service charges?

To fund the upkeep of the common areas, each member pays an annual service charge.  This service charge is payable each year and is reviewed by the members at the AGM each year and pays for the maintenance, upkeep and insurance of the common areas which includes grass & all landscaped areas in the development. In addition to this, a portion of the service charge is reserved for a contingency fund known as the sinking fund, to be used for future capital improvements/upgrades in the development. The service charge is reviewed and agreed by the members at the AGM each year.

 

The MUD Act & Legislation governing Multi Unit Developments:

The Mud Act came into force in 2011 to legislate for these multi unit developments.  The Act stipulates that an owners' management company must be set up, and the common areas of the development transferred to the management company before the developer sells any units. For existing multi unit developments where one or more units had already been sold, the developer had 6 months from when the Act came into effect – until 30 September 2011 – to transfer ownership of the common areas. This transfer was to be done at the cost of the developer.

 

What is a sinking fund?

The sinking fund is a fund set up to make provision for future capital expense i.e. to upgrade or replace elements of the buildings and site. The sinking fund ensures that all owners contribute equally to upgrade works when required. The objective is to ensure that a “fit for purpose” sinking fund for the management company with sufficient funds for ongoing site upgrade works in the future.

Typical works which would be paid for using the sinking fund include:

·       Roof repair and upgrade

·       Gutter repair and upgrade

·       Painting of common areas

·       Repair works to kerbstones, footpaths

·       Upgrades or binbays to make provision for recycling.