I own an apartment in a twin block of about 29 units. My unit is one of about 14 apartments with a common-entrance main door. Eighty-five per cent of the apartments are investor-owned while elderly people occupy the balance.
Having spoken with some people who rent their apartments, they inform me of their reluctance to discuss negative issues with their landlords as it potentially jeopardises their tenancies. An example of this would be when, last summer, the main door was left open with a broken lock for more than two months. Obviously, such an event impaired the personal security of occupiers. There is a multitude of negative issues pertaining to the owners’ management company’s (OMC) performance, which I do not wish to elaborate on.
My question is: who is the OMC answerable to other than the owner-occupiers who are automatically members of the OMC? Would it be the Competition and Consumer Protection Commission (CCPC)? Is there an ombudsperson? Both the OMC and management company do not seem accountable, and the registered office of the OMC is the management company. The landlords seem happy to receive their rents and really do not see matters close up.
The OMC is a legal structure set up to manage the business of your apartment block and is governed by the Companies Act. However, this governance extends only to the operations of the company, not to the running of the apartment block.
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Any issues relating to the running of the apartment block are the responsibility of the OMC and there is currently no regulation and no ombudsperson for OMCs in the State. Regulation of the OMC was considered by the Law Reform Commission in 2006. Before this, it was the Consumer Protection Agency that was receiving the calls from consumers about poor practices within OMCs.
What followed was the Regulation of Property Services Providers which primarily takes care of the service providers in a broad sweep of property services in Ireland; that is, the Property Services Regulatory Authority. In 2006 the Law Reform Commission set out in detail the need for regulation of OMCs noting that the idea of having a single, specialised regulator for the sector was particularly compelling. Advocacy organisations such as the Apartment Owners’ Network continue to petition the Government for such regulation today. The OMC sector is faced with many problems which affect those who own and live in properties in multi-unit developments.
Given the growing size of the sector and the scale of property investments at stake, it is clear the call for regulation of OMCs is more than justified from a consumer perspective.
The running of the OMC is the responsibility of the directors. These directors are unpaid volunteers that give of their time freely. The sector is almost completely run by a group of civic-minded volunteer directors who may or may not possess sufficient knowledge or skills for the job, yet they hold full control of all aspects of OMCs including the legal, administrative, financial and practical aspects. This system will be tested further when the time comes for apartment owners to claim from the remediation scheme for defects in apartments given the expertise that will be required to make a successful claim.
If you become a director of your OMC, then you will have the authority to make decisions and to effect change in your OMC. You could propose yourself as a director at the annual general meeting. If possible, you should speak with other owners who may share the same views and aspirations for your OMC as you do, as all decisions in an OMC are made at company meetings and mainly by majority vote.
There appears to be some confusion in this query as it refers to – “both the OMC and the management company” because the OMC is the management company. It may just be confusion over terminology. In the majority of cases OMCs engage the services of a management agent to look after the common areas of the development. If issues arise via the OMC, they can be addressed with the managing agent.
You should ensure that your OMC is employing a qualified and licensed property managing agent. The Housing Agency has produced an excellent guide for OMCs when engaging a managing agent on its website.
If you are a director of your OMC you will have the authority to instruct the agent and make positive changes in your apartment block. Your managing agent is regulated by the Property Services Regulatory Authority and they must ensure that they conform to a code of practice. You will find this code of practice and much more on its website. Other resources to assist you with your OMC issues are available from the Apartment Owners’ Network.
Aisling Keenan is a property managing agent and consultant and an associate member of the Society of Chartered Surveyors Ireland
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