Block management – a well-regulated sector
The days when the construction and ongoing management of residential blocks or complexes could be built or maintained to shoddy standards are dead and gone.
Similarly to lettings agencies, those dealing with block management in Ireland have also seen an evolution in sophistication and professionalism that wasn’t there in the Ireland of the not-so-distant future.
The days when the construction and ongoing management of residential blocks or complexes could be built or maintained to shoddy standards are dead and gone and most people living in such residential units today understand and appreciate how this system works.
According to Binesh Tholath – managing director of Absolute Property Group – there are still those owner-occupiers in such complexes that don’t appreciate the importance of everyone contributing to the management fees every year, however.
Absolute Property Group concentrates mainly on block management – one of the two principal block management specialists in Cork city.
“I’m in block management for the last thirteen years,” says Binesh, “and I don’t know if it’s a cultural problem or not but I still find that a lot of people think that an owners’ management company is not necessary.
“The attitude can be, ‘why should I pay someone – it’s my own home’ and I can understand that too – people are paying with a limited disposable income, but we often have to remind people like that that the building or complex has be constantly maintained and maintained to a very high standard... most of the apartment owners understand this and will pay on time but there’s a minority who will not pay or not pay on time and it only means that their neighbours have to pay more for the necessary upkeep costs... owning an apartment isn’t just about owning the four walls in which you live – you’re also living within the larger ‘home’ of the building or complex.”
Another pitfall that some apartment owners fall into is that of someone in the management company (the voluntary company representing the complex) informing the residents’ board that they can manage the property for a lesser price.
But, Binesh points out, it’s important to realise that costs to get repair and maintenance works carried out are not reducing, whatever someone else might try to say. Moreover, a block management company such as his has to operate under strict licensing conditions and an individual cannot legally set themselves up overnight to fulfil such a role.
“There’s a big responsibility in the role that people sometimes don’t understand,” says Binesh, who says that his job can often be that of an intermediary to keep everyone happy and keep the property in perfect order.
“There’s a lot of work involved, such as working out the budgets, finding the best prices, collecting the money... a lot of it is quite detailed and mandatory too, such as getting all the legal paperwork submitted on time.”
Absolute Property have their own solicitor – something that is an increasing necessity as the specialisation of their profession develops. When a management company of an apartment block is first defined in law and established, there is much legal work to be carried out but the block management company’s need to keep on top of everything – both legal and organisational – means that they often need to have a legal representative in-house.
