Residents at a Dublin apartment complex have begun moving to alternative accomodation due to fire safety concerns.

Around 100 residents of the Priory Hall apartment complex in Dublin have spent the night at a hotel.
The move is part of Dublin City Council’s plan to provide them with alternative accommodation.
The High Court has ruled they have until Thursday to leave their properties due to concerns over fire safety.
The property developers behind the complex, Thomas McFeely and Larry O’Mahony, have also been ordered to surrender their passports.
There are some 250 residents at the complex in Donaghmede and many are owner-occupiers with mortgages.
As well as those staying at the hotel, many residents have moved to the homes of friends and family.
A residents’ meeting was held at the hotel, where the householders were briefed on the latest developments in relation to their homes at the courts.
They were also addressed by David Hall of the New Beginning legal group, who has now been asked by the residents to advise them on all aspects of what is happening to their apartment complex.

We at Bourke Property frequently have to deal with fire alarms and, from working with the Sligo fire service, fully understand the importance of a fully working and operating fire alarm system in apartment buildings. The system must be maintained regularly and can go off frequently so it is vital for the management company to be on top off all aspects to do with fire safety. If the local fire service is not secure in the knowledge that the fire alarm systems condition is 100% they will have no problem evacuating the complex, just as they are enforcing at Priory Hall. This is in the best interests of tenants and owner occupiers even though it is a massive inconvenience.
If the Block insurance was paid in full this covers the cost of evacuation and re-accommodation while building corrections are been made.
All owner occupiers are members of the Management Company when they bought into Priory Hall and they should have been actively involved in the management of their complex since the beginning. If active discussion was in place the situation would not have deteriorated to this degree.It would also appear that the developers were absent from the country and took no active part in the resolution of this major issue for their tenants and shareholders.

It is also important that the developers fulfill their obligations to ensure the complex is up to fire safety standards, and continue to work with the management company and fire service if this still needs finalizing. In the case of Priory Hall in seems that the developers didn’t complete the development to the fire services satisfaction and they are paying the price for the short cuts that they took.

From RTE.ie

As the residential developments built during the Celtic tiger sit waiting for residents to some day move into them, the signs of abandonment are definitely beginning to show.

The fact is it doesn’t matter who owns them now, be it the developers, the banks or NAMA, these ghost estates and abandoned apartment blocks still need to be managed. They need to be looked after, not only to uphold the value they have left, but for the community they’ve been left in. The way I see it, its not just the developers who we should feel sorry for, but also the people who live in and beside these estates who have to look at the mess everyday.

If these developments were managed properly by the owners they wouldn’t be deteriorating so fast. They need someone to go in there every week or two to ensure no damage has been caused, no pipes have leaked and prevent dampness destroying the walls.

Yes it would cost more money for someone to manage it and look after the development on a regular basis, but surely that is worth investing in instead of letting a €10-€20 million euros development fall apart and eventually, more than likely, be knocked.

Whats the worst that could happen? The management company might even rent a few apartments out, and some income is better than none.

Let us know your thought s?

Are you unsure about property management and what its all about?

Elaine VonCannon answers some of your questions in this honest article.

Property Management: The Good, the Bad, and the Ugly

Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager

Being a landlord is not all it’s cracked up to be. Think carefully of all the responsibilities that follow the purchase of an investment property for rental use. Screen your clients, run credit checks and, if you are both landlord and owner of the property, learn to deal with problems objectively, fairly and legally. Many clients will try to talk their way out of serious issues like late rent payments. Some will even present a dramatic sob story – be sure to stand firm and take care of your property the best way you know how. Any renter can and should be held accountable for rent they have agreed to pay. Tenants can be like children and will give you gray hairs. You may have to start coloring twice a month!

Make Sure You Have Time For DIY
Do-it-yourself (DIY) property management can be difficult if you have a career and a family. The responsibility of the landlord position can be incredibly time consuming. As the owner or manager of the property you will receive all tenant phone calls to report items that need to be fixed or complaints that need to be mentioned. Tenants can be very high maintenance. Be prepared for them to call often and for minor reasons. Also, take the time to complete quarterly checks every three months. Especially if you are a DIY property manager/owner, keeping an eye on the condition of the property is essential to maintaining your investment.

Ask Questions And Read The Fine Print
To find a property manager you must know what questions to ask. Write a list of the reasons you want to hire a property manager and be clear about what you will expect from the person or business that represents you. When you hire a property manager read the property management agreement thoroughly. Many property management agreements renew annually, unless you cancel the agreement sixty days in advance. Most property managers continue their management while tenants they have procured are still living on the property. The management agreement will hold in place until the tenant vacates regardless, of your desire to terminate the current relationship. Always, be fully aware of what kind of commitment you are making in these agreements.

Don’t Let Management Companies Take Advantage Of You
If you decide to work with a property management company educate yourself about possible hidden fees that may be added to take advantage of less knowledgeable property owners. Extra fees like charges for acquiring work or cleaning estimates, procurement fees for finding new tenants and commission fees added to tenant sales are just a few examples of things to look for. Commission charges that are added to tenant sales are negotiable within the property management agreement. These types of concealed charges are typical in agreements created by larger companies that have a property management division. In general, the cost to hire a property management company should be a percentage of the monthly rent.

Tips To make Your Property Management Search More Successful
Always research and read your property management agreement from beginning to end. Don’t sign anything until you feel comfortable. Take all the time you need to make a decision. Research and compare property managers. Ask them about their marketing strategy for the property. Find out how long the manager has been licensed and how many properties they have worked with. Ask for and contact references. The best property managers are found by referral through a trusted friend or business colleague.

Living By Example
As a property manager I try to exemplify the highest qualities in the business. I charge a percentage of the rent for my fee and promise not to add any hidden fees or undisclosed costs. I also require all potential tenants to allow me to do a credit check. I work to create the best situation for everyone involved. Since many rental properties eventually go up for sale, you are always building relationships with tenants who may be potential buyers. It is worth it to be smart, fair and reasonable in your property dealings.

NPPR levy due for payment

The €200 annual charge on non principal private residences (NPPR)is now due for payment. It is payable to the local authority in whose area the property concerned is located.

The 2011 charge is based upon the ownership and status of the property on the 31st March 2011.

You must pay the NPPR charge for 2011 on or before the 30th June to avoid late payment fees of €20 per month.

€200 Property Tax FAQ

What is the NPPR (Non Principal Private Residence) charge?

At its simplest, the Local Government (Charges) Act 2009 introduces a €200 annual charge on non principal private residences, payable by the owner(s) of the NPPR to the Local Authority in whose area the property concerned is located. You can read the full act by clicking the legislation .

What types of properties are liable for the NPPR charge?

The Local Government (Charges) Act 2009 starts from a position where it applies a charge to the owners of all residential property but goes on to exclude certain property or buildings from the definition of “residential property” and it also provides certain exemptions from the concept of ownership.

The most significant exemption is for a property which is the sole or main residence of the person who owns it. Residential property that has never been either sold or used as a residence is also exempt as is certain social housing. Properties in the Rental Accommodation Scheme are exempt. There are also limited exemptions where a person is moving house and, in the process, owns two houses for a relatively short period. Other exemptions deal with Local Authority housing, shared ownership housing (with a Housing Authority), some heritage buildings and, in certain circumstances, joint ownership of a property after a divorce or separation agreement. Residential property liable for commercial rates is also exempt (although few instances of such properties are anticipated).

The Act should be consulted about these exemptions. The main types of residential property that are liable for the charge are private rented property, vacant property (except new but unsold residences) and holiday homes.

What is a Non Principal Private Residence?

The Local Government (Charges) Act 2009 provides for a new annual charge on certain residential property. While the Act does not use the term “non principal private residence” as such, it does provide for an exemption from the charge for owners of residential property where the property in question is the “sole or main residence” of the owner concerned. This expression is also used in other tax legislation. Essentially, a non principal private residence is any dwelling which is not the owner’s normal home.

Who can I contact to discuss if my property is liable?

You should contact the relevant Local Authority if you are in any doubt about the liability of your property i.e. the County Council or City Council in which the property is located. You will find links to all of the local authorities on our Contact us page.

How much is the charge?

The charge is set at an annual rate of €200 in 2009 per residence but late payment can incur a significant fee – see below.

Who do I pay it to?

It is payable to the LGCSB NPPR on behalf of the City or County Council in which the residential property liable for the charge is located. You can pay it electronically at www.nppr.ie.

How can I pay the charge?

You can pay the charge at the website www.nppr.ie. You will need a credit or debit card to pay the charge online. Local Authorities (City or County Councils) will accept completed NPPR registration forms. The payment types accepted with a registration form are credit card, debit card, bank draft, postal order and cheque. Payment should be made out to “LGCSB NPPR” and NOT to the local authority. You must also make a declaration of ownership of the property in question – see below.

What do I need to pay my NPPR property charge online?

To pay your NPPR charge online you will need (1) your PPS number(if individual) or tax reference number(if company); (2) the address of your NPPR property or properties and (3) your debit card or credit card details.

Can I pay for multiple properties online?

Yes, you can pay for multiple properties in the online system.

What is my Account Reference Number?

Your account reference number is a unique number that is generated when you register with the NPPR system. You will need it to subsequently log in to the online system or to enquire about your account at a Local Authority office.

Where do I get my Account Reference Number?

Your Account reference number is generated when you register with the NPPR system. It will be displayed on screen and you should take note of it for future use. It will also appear on your payment receipt.

Where do I get my PIN?

If you chose to activate your account by email, you will receive your PIN in an email from NPPR System, please check your spam/trash folder.

Do I use the same Account Reference Number every time I pay for my property charge online?

Yes, you will use your Account Reference Number and your PIN to log in to the NPPR online system.

How will I receive my receipt?

You can print off your receipt from the online system when you complete payment or a receipt may be emailed to the email address that you provided.

When does the charge apply? What’s a liability date?

See above in relation to the types of property to which the charge applies

Liability to pay the charge is determined on the basis of ownership of the property in question on a single day each year. This date is called the “liability date”. For 2009, 31st July has been set as the liability date. The charge must be paid within two months of the liability date (30th September in 2009).

I own a mobile home. Is this liable for the charge?

A mobile home is not liable for the 200 Euro charge.

I no longer own an NPPR – what should I do?

If you no longer own an NPPR that you previously registered in the system then you may remove your association with the particular NPPR. This may be done on the NPPR details page.

Note: As a Local Authority may be requested to provide a Certificate of Compliance at a future date, your association with that NPPR will be maintained for that purpose. However, that NPPR will not be displayed in your current list of registered NPPRs.

I own an apartment/bedsit – am I liable for the charge?

Apartments and bedsits are liable for the charge. Unless one of the exemptions apply in your case (e.g it’s your principal private residence), you will be liable for the charge.

I’m moving house and own two properties on a temporary basis – do I still need to pay the charge?

The exemption in respect of a principal, private residence applies in respect of one property only but the Act does permit the payment of a refund in certain circumstances where a person owns two properties on a liability date. The refund may apply where a person, in the course of moving house, owns two properties for a temporary period.

As stated, only one property can be a person’s principal private residence at any given time, and a charge must be paid where a person owns a second property on a liability date even where this has been acquired as part of the process of moving house. A refund can be applied for where the second property was acquired within the year previous to the liability date in question and where the first property is disposed of within six months of the liability date in question. Owner can apply in writing to their local authority for a refund.

I’m divorced/separated – am I liable to pay the charge?

If a person is divorced or separated (judicial separation agreement having been granted) they will not be liable to pay the charge where they reside in what used to be the family home as their existing principal private residence. Where the other party to the divorce or separation agreement does not reside in the original family home but retains an interest in the ownership of the property on foot of the divorce or separation agreement, the Act provides that this person will not be liable for the charge in respect of the interest that they retain in what used to be the family home.

What’s a declaration and what information must I provide?

You must also declare your liability for the charge when you are making the €200 payment. This declaration can be made through the web-site or in writing on the approved form, as part of the payment process in either case. In summary, you must provide the:

• Name of the owner of the property,

• Address of the property,

• Address for correspondence of the owner of the property

• Personal Public Service Number of the owner of the property in the case of a private ownership

• Tax reference of the owner where the owner is a company.

A tax reference number for a company can be either a reference number on any return of income form or notice of assessment issued to the company by the Revenue Commissioners or the registration of the company under the Companies Acts.

What’s a “late payment fee”?

The Act provides that, if a charge is not paid within a month after the last date for payment, a late payment fee will apply for every month or part of month that the €200 charge remains unpaid. For 2009, this means that the late payment fee will apply to all payments made after 31 October 2009. The late payment fee amounts to €20 per month or part of a month. The late payment fee will continue to roll up as long as the charge remains unpaid and the amount involved can be substantial.

What happens if I don’t pay?

A person who does not pay a charge within the relevant two month period leaves themselves open to prosecution by the Local Authority to whom the payment is due. A late payment fee will also arise if payment is not made within the one month grace period – see above. Furthermore, both the €200 charge and any accumulated late payment fee will be a charge against the property concerned. This is likely to lead to difficulties in selling the residential property as the person buying it would become liable for any charges and fees outstanding in respect of the property concerned.

Who pays the charge where a property liable for the charge is owned jointly?

Liability falls on all co-owners but payment by any one co-owner discharges the liability of all co-owners.

What if I’m selling my house – how do I prove that I have paid the charge?

You can request the relevant Local Authority to give you a certificate to this effect. This will be evidence of payment, and will formally discharge any liability in law for payment of the charge.

Is there an exemption for a person who had had to be taken into care because he/she is incapacitated due to illness, and who retains ownership of their house or apartment?

Yes. If a person has had to vacate their principal private residence (which they own) due to long-term incapacitation arising from physical or mental illness, the property is exempt from the charge irrespective of the use to which it is subsequently put. The exemption applies irrespective of whether they live in a nursing home or care centre, or whether they live with, and are cared for, by relatives. The only condition is that they must not own the property in which they now reside.

I own a ‘granny flat’ in which my parents live – am I liable for the 200 Euro charge?

Granny flats and similar dwellings are exempt subject to a number of conditions. The exemption applies to a dwelling in which a relative (or a relative of a spouse or partner) lives if it is provided free of rent and if it is located no more than two kilometres from the residence of the owner.

Check out this site for more excellent information http://www.irishlandlord.com

Source: The Sunday Business Post - 17th April 2011

Kieron Wood

Last week, Galway Property Management cut off the electricity supply of tenants in Kilmainham Square, Dublin, where the owners of the apartments allegedly owed management fees.

The tenants received a letter dated last Tuesday, saying that ESB services would be ‘‘withdrawn by the management company’’ the following day. The letter, signed by Galway Property Management managing director Joe Gaffney, added: ‘‘I suggest that you contact either your landlord or letting agent as soon as possible, as we have already advised the landlord/letting agent of the situation.”

Gaffney told The Sunday Business Post that his company acted for the Chocolate Factory Property Management Company Ltd, the management company of Kilmainham Square. He said the electricity supplies travelled to apartments through ducts belonging to the management company, and apartment owners were not entitled to use management company property if they did not pay management fees.

‘‘It is not a nice business cutting off someone’s electricity,” he said, ‘‘but it is much better than going the legal route which takes months and months and months’’.

Airtricity said it was responsible for supplying electricity only as far as the apartment block meter; thereafter the supply to individual apartments was a matter for someone else.

A spokesman for the company said it had no right to go into apartments and reconnect tenants’ supplies, even if this seemed ‘‘unpalatable from the customers’ point of view’’.

‘‘In the current economic circumstances, we shall probably see more of this,” said the spokesman.

Kevin Baneham of the tenants’ organisation Threshold told The Sunday Business Post that it was clear that the management company concerned had interfered with the tenants’ ability to enjoy their rented property.

‘‘While there is no relationship of landlord or tenant between the management company and the tenant, the acts of the former have had a significant impact on the rights of the latter.

This gives the latter a cause of action against the former.

‘‘In similar cases, we have referred the matter to the National Property Services Regulatory Authority, which, despite still being in ‘shadow form’, will intervene in such disputes.

‘‘In one case, we prepared injunctive proceedings against a management company where it changed the locks to the front door of an apartment complex and would not supply the key to one tenant because her landlord had not paid the service charges due.

The imminent threat of the injunction led to the handover of a key to the tenant.”

A spokesman for the Commission for Energy Regulation said: ‘‘We would take this matter seriously, both from a consumer and a safety point of view.

‘‘We will be investigating the issue.”

Is this something that could effect you ? Do you agree with these harsh measures ?

NAMA, receivers and developers will be banned from selling off apartments unless control of the common areas in the developments are handed over to the owner management companies controlled by home buyers in the developments.

This is the implication of a new act recently signed into law by the president, Mary McAleese. In many cases, developers or receivers have retained control of the management companies.

Where control is not transferred, NAMA and the banks could be prevented or delayed in their efforts to recover hundreds of millions of euros worth of loans tied up in developments. The Government may also lose out on collecting millions in VAT which is charged at 13.5pc on new home sales.

According to Paul Mooney of the Irish Property and Facility Management Association (IPFMA) the new act is expected to come into force in April this year and give receivers and developers a further six months to transfer ownership to the new management companies.

Barrister Brian Walker told an IPFMA meeting that the Multi-Unit Developments (MUD) Act would also see apartment owners take more developers to court in order to force developers to transfer common areas in developments to the owners’ management company.

The MUD Act will “shortly see hundreds of applications being made to the Circuit Court ‘to fix’ problems that have been festering over the past 10 years plus in typical apartment management company disputes,” he said.

The ban on apartment sales could also affect home owners and investors in developments who are seeking to sell.

“Money will be at the heart of many disputes. Investors and residents are hard pressed with mortgages and will struggle with service charges and the challenge of the new sinking fund. Their management companies need to be properly funded to safeguard the asset,” Mr Walker warned.

He added that the courts want the parties to do a lot more to resolve their differences between themselves. The new law allows a judge to order mandatory mediation.

He went on to say that “owners don’t fully appreciate how valuable their property management company is and a complete culture change will be required in 2011, or else people will see their asset value diminished drastically.

“The act will bring some much tougher measures into place but it will create a strong structure for the resolution of disputes in a fair, transparent and uniform fashion,” he added.

Irish Independent

(13 Jan 2011)

Source: Irish Times 13th January 2011

Jack Fagan writes

Cleaning, security and maintenance of apartments and houses are suffering because of unpaid service charges, says a new survey.

AN INCREASING number of investors who bought apartments and houses to rent in recent years are failing to pay service charges, according to a new survey.

The study by the Society of Chartered Surveyors and the Irish Property Management Association found that about half the property managers questioned reported that up to 20 per cent of the owners had not paid their services charges in the past year.

The remaining property managers calculated that between 20 and 40 per cent of the owners were in default in other residential schemes.

Clare Solan, honorary secretary of the Society of Chartered Surveyors, said the results showed that the non-payment was more likely to occur in newly-built developments than in older schemes. Investors were again identified as the largest single group of owners who were more likely to try and dodge the payments.

This was largely due to the fact that they did not reside in the apartment blocks and distanced themselves from the problem. The investors had to cope with reduced cash flow and restrictions on bank funding.

The survey identified developers as the second most likely group to have fallen behind with the payment of service charges. Ms Solan said this was probably as a result of a reduced cash flow since the intervention of Nama. Developers were also slow to pay service charges on residential units remaining unsold.

Around 65 per cent of the property managers questioned said that as a result of the fall-off in payment of the charges, services such as cleaning and security had been either withdrawn or reduced in many developments.

“Continuing redundancies, pay cuts, declining property values and overall uncertainty in the property market means that this problem is likely to continue and indeed worsen,” the report said.

“As repairs, maintenance and cleaning decline, the quality of the properties will suffer, leading to a depreciation in values. Once the housing stock deteriorates as a result of reduced maintenance, it will require greater levels of repair and investment in the future.

Ms Solan says the Society of Chartered Surveyors had sought the support of the Department of the Environment, Heritage and Local Government to tackle the problem of unpaid service charges.

The SCS had suggested that as part of the annual tax returns, an investor claiming mortgage relief or Section 23 relief should have to provide proof of payment of service charge before he could secure these benefits.

Ms Solan also suggested that the Small Claims Court should have jurisdiction to a limit of €3,000 (currently €2,000) to deal with cases involving the non payment of service charges.

We have a fine mature gentleman who is interested in house sharing as he travels away for work reasons weekly.This house is suitable for someone looking to live in a great location and in a comfortable home . If you are coming to work in Sligo General Hospital and would travel back to your original home when off duty then this could be just what you are looking for . Ring us for further details
0872842945 Susan

The proposed new MUD Bill is to be discussed tonight in the Dail read the synopsis here
/

and see what it means for you as an Apartment owner

This is a break down of the Budget facts in relation to property ,for the full analysis click here www.mcmdr.ie

Passive Investors

New measures are being introduced targeting passive investors which will include restrictions on the offset and carry forward of capital allowances which will start in 2011 and impact progressively over the next few years. A guillotine provision will ensure that all unused capital allowances after 2014 are lost.

Section 23 Type Relief

• From 1 January 2011, relief allowed will be restricted to income from the Section 23 property itself (currently such relief can be set against all rental income for investors).

• At the end of the 10 year holding period, any unused relief will be lost. If property is sold within this period, the new owner will not get Section 23 relief and the seller continues to be subject to a clawback of relief already given.

• For Section 23 properties yet to be sold, for which the relief has yet to be claimed, the 10-year qualifying period will start on 30 June 2011 regardless of the date of the first qualifying lease. Therefore, in such cases no Section 23 relief will be available after 30 June 2021.

• Residential owner-occupier relief is unaffected by these changes.

• A guillotine provision will ensure that all Section 23 reliefs carried forward from 2014 are lost.

Further detail relating to the above changes will be included in the Finance Bill.
Stamp Duty

Existing rates will be replaced with a flat rate of 1% on all residential property transactions is to be introduced up to a value of €1 million with 2% applying to amounts above €1 million.

The following existing reliefs and exemptions for Stamp Duty on residential property are to be abolished in respect of instruments executed on or after 8 December 2010:

• First time buyer relief

• Exemption for new houses under 125 sq m in size

• Relief on new houses over 125 sq m in size

• Consanguinity relief for residential property transfers

• Exemption for residential property transfers valued under €127,000

• Site to child relief

A transitional provision will be put in place to ensure that anyone who has entered into a binding contract to purchase a residential property before 8 December 2010, and who executes the transfer of that property before 1 July 2011, will not lose out.

Check out http://www.mcmdr.ie/budget.html for more analysis