A survey by the Society of Chartered Surveyors (SCS) – in conjunction with the Irish Property Facility Management Association (IPFMA) – reported that an increase in the non-payment of service charges in 2009 was recorded by around 90 per cent of property managers. Investors were the largest proportion of those withholding payment.
Around 44 per cent of the developments surveyed suffered from a situation where services had been decreased or withdrawn due to lack of funds. In the years to 2009, 62 per cent of respondents said 80-100 per cent of service charges were paid, yet this dropped to 25 per cent in 2009.
The shortfall in service charges is resulting in more occupiers/investors refusing to pay charges as they do not wish to continue paying for services that are not being delivered. Without funds, properties cannot be maintained.
You can read the rest of this article on the Irish Times website.
June 2nd, 2010 on 11:43 am
I am an owner and also an occupier in a small development of 17 units half apartments and half houses. In the last 10 months I have become active in the management company which is struggling to keep going. Some owners (currently about 20%) will not pay the service charge offering a variety of reasons/excuses. The major part of the service charge is for the block insurance. Recently there was a fire in an apartment and together with the latest changes in the insurance market we are now faced with a premium increase of 120%.
I would welcome any advice on how we can collect the service charge debt and as a minium keep the management company a float until the new laws kick in.
June 2nd, 2010 on 11:46 am
Hi Harry,
It’s an uphill struggle to collect all the services charges and there’s no easy answer. We published an article which might help you. It will require a lot of commitment from both your board and your agent but it’s an absolute must!
Mark