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

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.

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.

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

Landlord Insurance

Do I need special landlord insurance?
The insurance risks associated with letting residential property can be substantial and are different to that of owner-occupiers. Do not under estimate the importance of having the right insurance for your investment property. Some landlords make the mistake of relying on normal household cover – this is not adequate. An investment property requires specific investment property (buy-to-let) insurance.

Always make sure that your insurance broker/company knows that the property is rented to tenants, ask what the cover restrictions are, for example –

Is malicious caused by the Tenant covered?
How long can the property be unoccupied before cover is restricted?
Is liability for injury to /caused by the Tenant covered?
Is liability to tradesmen covered?
Is loss of rent covered?

What type of insurance cover do I need?
The key areas of cover required for investment property are:

Third Party Liability
Building Cover
Contents Cover
Loss of Rent Cover
Third Party Liability

First and foremost, the landlord should be concerned about the risks now posed by third party liabilities. Make sure you are covered against death or injury to tenants and third parties visiting your property e.g. visitors, workmen etc.

If your property is insured under a block policy ie an apartment this policy will only cover liability arising from accidents in common areas ie the hall, stairs and landing. It will not cover accidents occurring inside the apartment. For liability cover to apply inside the apartment you must have content insurance but check that it covers liability to the Tenant as well as third parties (visitors, workmen etc.)

Building Cover
The buildings sum insured should be equal to the cost of rebuilding the property from scratch if it is completely destroyed. (You should allow for the cost of debris removal as well as architect and surveyors fees) This is known as the reinstatement value.
Note: This is not the same as the market value of the property.

The ‘average clause’ in insurance means that if you do not adequately insure your property you may end up at a significant financial loss in the event of a claim.
For example: The full reinstatement value of a property is €200,000. The property owner only has buildings cover of €100,000. Following damage to the property to the value of €50,000 the owner claims against his insurance. However as the property is only 50% insured, he will only receive 50% or €25,000 from the insurance company and not the €50,000 – in this case the property owner could end up €25,000 out of pocket.

Always check you have sufficient buildings cover. Guidelines on how to estimate the rebuilding costs for various types of residential properties in different parts of the country can be obtained from the Society of Chartered Surveyors (see www.scs.ie).

Contents Cover
Unlike owner occupied properties, landlords do not normally need full contents cover. Landlord’s need contents cover for items that they own such as electrical appliances, carpets, curtains, blinds etc. A rental property would typically involve a much lower contents figure than an owner occupied property, as the tenant is responsible for much of the contents.

Always check that your policy provides cover for replacement of contents on a new for old basis. Many polices now offer a contents sum insured based on a percentage of the sum insured on the building e.g. 20% of the building sum insured.

Always make sure to inform tenants that they are responsible for insuring their own contents.

MOST INSURANCE POLICIES DON’T COVER MALICIOUS DAMAGE CAUSED BY THE TENANT – ALWAYS ASK YOUR INSURANCE BROKER/COMPANY IF THIS IS COVERED

Loss of Rent Cover
Most polices for investment properties now include cover for loss of rent if the property is badly damaged or destroyed and this results in the property being unsuitable for occupation by tenants. As most landlords rely on the rental income to cover their mortgage payments, it is vital to ensure this cover is included on your policy.

Check that the Loss of Rent provided by your policy is adequate – many insurers automatically give 15% of the building sum insured. Content only policies often don’t provide this cover so check that the small print.

Policy Excess
Always remember to check what excess applies to the policy you are considering. The excess is the amount you must pay when making a claim – this can vary from policy to policy. For example, if a policy has an excess of €250, the policy holder must pay the first €250 of any claim. Usually the higher the excess the cheaper the premium.

What about apartments?
In an apartment building, the building insurance should be covered by the annual management. You should always check with the management company that the insurance they have arranged meets with your requirements – ask them for a copy of the policy. It is vital to take out a separate policy to cover third party liability, loss of rent and contents cover.

Does the type of tenant affect the premium?
Insurance companies will often ask what type of tenants will be renting your property (e.g. professionals, students, family, couple). Some insurance companies will not provide quotes for properties rented to students. If the type of tenants change, for example from professionals to students, make sure you inform your insurance company.

How can I reduce the premium?

*

Shop around – Check that your building and content sums insured aren’t too high
*

Fit smoke alarms
*

Fit fire blankets and fire extinguishers
*

Install an alarm
*

Fit security locks
*

If you have a number of investment properties negotiate with your insurer and see if they will give you a bulk discount.

Is cover index linked?
Most insurers will index link the amount of policy cover to the Consumer Price Index so that you maintain an accurate insurance value over time. However it is the landlord’s ultimate responsibility to ensure they are adequately insured.

What factors affect the premium I pay?
Insurers assess risks in different ways, depending upon their formulae for the risks involved. Insurance is all about statistics and claims. If your properties have factors that attract more claims, or you personally have a high claims history, then inevitably your premiums will be higher.

Typical factors would include:

*

The location of the property – all insurers use location to assess the risk. Some areas, for example, with high crime rates, or if it’s on a flood plain, will attract higher premiums.
*

The type of tenants you let to and the type of property.
*

The age of your property might have a bearing, as older building materials and standards of construction tend to pose higher risks.
*

A personal history of multiple or large claims.

Always make sure that the insurance company is aware that the property is a rental property – failure to do so could result in the policy being null and void in the event of a claim.

Where do I get insurance cover?
There are now a large range of insurance brokers offering buy-to-let insurance. The number has increased in recent years and the market has become more competitive. Choose a broker that has experience of investment property (buy-to-let) policies – they will have experience in identifying the best policy to meet the landlord’s requirements.
Always shop around – a number of web-sites now offer on-line quotations for buy-to let landlords.

Tip: Install a fire blanket and fire extinguisher; this may reduce your premium.

Property tax on top of second home tax

The property tax announced in the government’s four-year recovery plan will have to be paid in addition to the second home tax, the Department of Finance has confirmed.

It had not been known whether the charge would replace the €200 levy that already applies to second homes.

But a spokesman for the department said that the ‘‘site value tax will be charged in addition to the NPPR charge’’.

The second home tax, or non principal private residence charge (NPPR) charge, has raised €130 million for the government since it was introduced in Budget 2009.

A flat rate tax of €100 per home will be imposed on an estimated 1.8 million householders in 2012, as well as on zoned land for an estimated 700,000 additional houses.

This interim tax will rise to around €200 in 2013 when a new site valuation tax will be imposed.

Details of whether the charge will have to be paid by the property owner or the residents of the household have yet to be worked out by the department. If the onus is on landlords to pay, they will be liable for €300 per investment property in 2012, rising to an estimated €400 in 2013.

Jim Power, economist with Friends First, said the new tax could hardly be called a property tax because it wasn’t severe enough.

‘‘They’re taking a pragmatic view that a property tax in the biggest property slump in the country’s history could be dangerous for the market. It was political cowardice as well,” he said. ‘‘We’ll see a ramping up of this tax in the coming years. The government has decided to fob it off in the four-year plan.

They should have held off until they brought it in fully. It’s a half-assed attempt at it.”

Power said he did not believe the removal of rent relief would have any effect on rents. ‘‘Things are too bad. I don’t think anybody would buy a house at the moment.”

Twitter, the Social Web and The Money Centre
Posted on November 26, 2010 by The Money Centre

Inspired by a recent discussion on the Property Tribes forum, The Money Centre is considering getting involved on the social web. Our philosophy has always been to give massive value and keep landlords up-dated with the latest intelligence to ensure they stay ahead of the game, so it would seem to us that we can reach out to many more of you via social media and interaction on-line.

We are particularly interested in using Twitter, as it is real-time, and allows us to engage with the landlord and investor community on relevant and topical matters. It also enables us to listen and respond to the issues that matter to YOU.

We asked Vanessa Warwick, Co-founder of the Property Tribes forum, for her views on Twitter as she confesses to being a Twitter-a-holic!

“I regard Twitter as my ‘serendipity generator’.” Said Vanessa who is @4_walls on Twitter and has over 3,500 followers. “Everything in business starts with a conversation and Twitter enables me to reach out and talk to so many more people. I can connect with relevant people and help others connect with the right people. I can learn, and I can grow as an individual in terms of the information, thought processes, and philosophies shared. I can ask questions and get feedback. Just yesterday I put out a tweet asking for a handy-man in Slough and got an instant response.

“Also, by sharing relevant and valuable information, I can become known as a ‘go to’ person in property. I want to act as a human filter and curator of great property intelligence and Twitter is my distribution and conversation channel.

“I have met so many great people, made so many powerful connections, saved so much time, and learned so much. I cannot recommend it highly enough. On twitter, a small tweet can be massively amplified through other people’s networks, meaning that messages, memes, and ideas can spread very quickly.

“The most up to date information is increasingly the most relevant to the community, which is why Twitter has now been added to Google search options. Twitter is also socially generated content and is like the beating heart of any shared-interest network and community that everyone can leverage. And of course, the best bit is that Twitter is fun and Twitter is free to use”.

So, in the spirit of listening and engaging, The Money Centre would like to ask you a question:

Would you like to see The Money Centre on Twitter?

How could we serve you in ways other than this newsletter up-date?

We look forward to hearing your views.

Please comment on this blog or email mra@themoneycentre.com

Are you fed up sharing ? Do you open the fridge only to find that someone else has eaten your food again ? Then we have the perfect studio for you where you can be HOME ALONE .

Bright city center with all facilities in newly refurbished house

Phone to arrange viewing

0872842945

Bourke Property have added 4 new locations to their growing portfolio of properties to rent . We now offer a large range of properties both in town and in the county . Strandhill is an exceptionally popular location both for families and single people as it has many amenities to offer.