Let me set the scene first. I recently took ownership of my apartment and have done some calculations of the maintence charges for the comples once the second phase is completed, get ready for this the annual maintence charges collected by the mangement company will be a staggering 580,000 Euro's (catch your breath, I know your strugggling to breath at this point).
I am told This money will be used for the managment of the site, waste disposal maintain the grounds, pools and communal area's of blocks (surely this amount of money can not be spent in a year or even half of that)
I know in the Uk and assume elsewhere in the EU, managment companies can only use maintainace charges for services to the site, these service's must be itemised and accounted inorder for the accounts to be presented at the annual general meeting, question is this the case ?
Also any underspent funds should go into an account (sinking fund) that can be used later for any major works required in the future such as sewage works, maintenace of the roof, exterior of apartments blocks etc.
I assume management companies can't legally line their pockets with owners monies and if this is the case why do govt/owners allow this to happen? It is acceptable to apply an acceptable management fee of approx 20%.
I dont wish to mention the complex, but you may can work it out for yourselves. I am not happy with this situation and feel very uncomfortable with this situation, I beleive all business arrnagemnt such as this should be transparent afterall we are the owners ?
I dont want to receive a huge bill in 10 years time when the entire complex will need upgrading. I am now regretting my purchase, even though the complex is really nice.
Any advice wellcome.
Wed Jul 28, 2010 5:09 pm
:shocked1:I hope you told them we already had April fool day 
