Your property questions answered
Management fees but few services
QI have paid the management fees for 2010 on my apartment (the developer is in NAMA) and yet services are being withdrawn and/or reviewed which were part of the fee paid in 2010, and even services I paid for in 2009 were not delivered. I was wondering where we stood or what action we could take as our management company is made up in the majority by the developers and even if all the residents called a meeting to vote on issues we would not have enough.
AYour short letter raises a number of complex issues. The first is the easiest to address. If the management agent has not delivered the services in 2009 as paid for by the management company then you should take the case to the Property Services Regulatory Authority (PSRA, psra.ie, Lo-Call: 1890-252712).
As to the make-up of the management company, the Multi Unit Developments Bill (currently going through the Dáil) will ensure that developers vest (transfer) the property in the management company within six months of the law being enacted. Each unit owner will have a single, equal vote – at present it is not unusual for developers to have weighted the voting in their favour until vesting takes place and this appears to be what is happening in your case. An owner of a unit, whether they are a developer or not or whether it is occupied or not, must pay their charges. Even if the developer is in Nama he still owns your development. It is the loan on the development that is transferred.
Will second home tax go up in Finance Bill?
QI have had a holiday home for some years. I have paid the second home tax of €200 for the past two years, since it came in. Before the Budget last December there was a great deal of speculation that the tax would be increased but it wasn't. I understand the Finance Bill is now going through the Dáil. Is there a chance that it will be increased, by the back door as it were, in the Finance Bill or could such a thing happen?
AYou are correct in saying that increasing the second home tax (or more correctly the Non Principal Private Residence Levy) seemed like a no brainer – particularly as the Budget was such a harsh one. At €200 per annum – and even with its heavy penalties for late payments – it's still low, relative to property taxes in other EU countries. Furthermore it appears to be an easy tax to collect and the systems for payment (via its website, nppr.ie) are clear and low on paperwork. But as you say it wasn't touched. In theory, it could be increased in the Finance Bill by way of amendment but given the impending election, any further tax changes are unlikely this time around. It will, though, be an obvious target in the next Budget – whether as part of a more wide-ranging property tax or, if the systems are not in place for that, then as a direct increase to the current €200 annual charge.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
