Block management is a service provided by property management companies. It’s essentially where the management company assists in a residential block’s financial and maintenance aspects. This is typically focused on the communal areas of the building. This article will look at all the facets that make up a residential block manager, from regulative requirements to property management’s roles and responsibilities.
Regulations in residential block management
Residential blocks are managed under the following legal provision: MULTI-UNIT DEVELOPMENTS ACT 2011.
This act has been through many revisions over the years, but the main enforcement of the legislation means that before any unit is sold:
- The owner must set up or commission a management company
- Any common area within the development must have been transferred to the management company.
Rental Property Management Fees
A block manager will typically charge a % fee based on the overall rent in the development. However, with increased fluctuations in occupancy rates, some property managers have opted for a fixed rate based on the number of communal areas/size of the property.
If you would like a detailed quote on what it would cost to manage your
development/complex/properties, then KPM Group can help.
Contact us today for a no-obligation quote for Block management.
Owner management companies (OMC)?
An owner-management company is a company specifically created to manage one development complex by the owners of the individual units.
The OMC’s responsibility is to manage all of the common/communal areas inside the multi-unit development. (Gardens, hallways, etc.)
Ordinarily, the OMC will be set up as a “Company Limited by Guarantee “, which is run by the members; in this instance, the members would be the tenants/owners of each unit.
The three biggest requirements for an OMC are:
- The OMC must have legal ownership of the common areas.
- Maintaining and managing all the communal areas inside of the development.
- The communal areas need to be legally owned by the OMC.
What are the common areas an OMC has to manage?
The Multi-units development act defines common areas in a multi-unit development as including:
- The external walls, foundations and roofs and internal load-bearing walls
- The landings entrance halls, lifts, lift shafts, staircases and passages
- The access roads, footpaths, kerbs, paved, planted and landscaped areas, and boundary walls
- All ducts and conduits, other than those within and serving only one unit in the development
- Cisterns, tanks, sewers, drains, pipes, wires, central heating boilers, other than those within and serving only one unit in the development
- Other areas that are from time to time provided for common use
- Architectural and water features
- The external walls, foundations and roofs and internal load-bearing walls
What are a developer’s obligations in multi-unit development?
Before the developer can sell a single unit inside a development, a developer must do the following:
- Set up the Owners Management Company
- Transfer ownership of any communal areas to the OMC – at the developer’s expense
- Sign a contract with the OMC; this contract must outline the responsibilities of each party. This contract should also detail any statutory requirements, completion dates for any common areas, details of retention Monday and any dispute resolution procedure.
Who can join an OMC?
Any person who owns a unit inside a complex can automatically join the OMC for that building, an OMC is a company set up by the developers, but the owners of the units run it.
When you buy a unit inside of a development, your solicitor will obtain and pass to you a certificate. This could be in the form of ownership or shares.
This document is extremely important; it’s legally binding and details that you own your unit and have a right to speak at the next AGM.
Every year an OGM should organise an AGM (Annual General Meeting). At this meeting, all owners can talk and help shape their community.
It’s a legal requirement that an AGM occurs yearly, and there should be no gap larger than 15 months between each meeting.
What is an AGM?
AGM is an acronym for an annual general meeting; it is essentially where all the members of the OMC meet to discuss issues.
The items discussed at an AGM vary, but more often than not, the following points are discussed:
- The performance of the company (The OMC)
- A review of the financial statements of the company
- Empty seats on the board of Directors
- What dividends, if any, should be given to members
- Selection of the auditors for the company
- The future of the company
Property Management Dublin
If you have been considering changing your block management company, then the experienced team at KPM Group can help.
KPM Group has helped countless landlords free themselves from the day-to-day management of their portfolios and trust us to deliver the maximum return on investment while providing quality property management services.
If you would like to speak to us here at KPM about your portfolio, then get in touch today. A staff member will be happy to help in any way we can.
