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Management companies
It is most common in Ireland for multi–unit development ownership to be structured in the form of a company, usually called a management company. In new developments the developer generally establishes the management company at the outset, often before the first unit is sold.
As units are sold, each purchaser becomes a member of the management company on completion of their purchase transaction and receipt of certificate of membership. For example, if 50 apartments are sold, there will be 50 members of the management company.
Typically, when the developer completes the development and transfers his ownership of the unit and common areas, the unit owners through the management company become the legal owner of the common areas and responsible for their maintenance.
Although the company is owned and ultimately controlled by its members, they do not personally need to be involved in the administration of the company’s day-to day affairs. For example the members do not have to put their names to contracts entered into by the company. Companies appoint directors to do this work.When the management company is first established, the developer or some of their staff, associates or solicitor may fill these roles. Typically, when the developer has finished the development and transferred ownership of the common areas to the management company, these directors resign. At this point, owners as members of the management company volunteer to fill the role of directors of the management company.

Although some management Companies are efficiently operated by their Board members, many have difficulties with the financial control and legal reporting requirements.
Too often the management is left to a small number of proprietors who ultimately find the role very onerous and unsupported, which invariably leads to frustration and dissatisfaction with the situation.

This is where the employment of a professional Management Agent to assist the Board of Directors is of great benefit to all the property owners. They will ensure that the funds are kept secure, that the legal requirements are met by the Management Company, that repairs and maintenance issues are promptly undertaken to maintain the value of the property and that professional negotiation skills are employed to resolve any issues and conflicts between members.  

Managing Agents
As the task of maintaining the common areas can be time consuming and specialised, many management companies employ professional firms known as managing agents to administer the maintenance of the common areas on their behalf. Managing agents and management companies are two very different entities and should not be confused. The management company employs the managing agent firm and ultimately the agent is accountable to the management company for its actions.

Management Companies Management companies and Managing agents are common in Ireland for multi–unit development
ownership... More »

 

Service chargeThe Service charge is used to pay for services required to maintain and manage the common areas...More »

 

Sinking Funds The Sinking fund is money that is put aside every year from the service charges to cover the cost...More »

 

Service chargeUseful links to know more about Property and Facilities Management More »