MORE SOBERING news for homeowners. According to the IPFMA (Irish Property Facility Management Association) apartment block service charges will rise following the regulation of residential management agents. Tom Dunne, chairman of IPFMA, said at the body’s annual lunch last week that when the new code of practice from the NPSRA (National Property Services Regulatory Authority) is introduced, people will be tempted by agents offering “what may appear to be better deals”.

He advises people to exercise great care in evaluating their track record and “not be attracted by superficial assessments of the work involved in properly managing an apartment block and the lure of reduced charges”. He says the professional management of multi-unit developments is more costly than many apartment owners appreciate. On a more positive note, he said that cost savings can be achieved and cost base flexibility can be increased by adopting more professional approaches and changing conventional thinking.

He also called for legislation to regulate the handovers of new apartment and multi-unit developments by developers. “This is a real problem here and there is no legislation covering this area,” he said. “Naturally, apartment owners will be reluctant to pay if they have no control over the level of the service charge, as might be the case where the development has not been handed over to them. Of particular concern is the circumstance where the development is unfinished and apartment owners are being unfairly burdened for a disproportionate share of the running costs,” he said.