REPORT LAUNCH
Pictured at the launch of the SCSI report were (from left): Finbar McDonnell, RF Property Management; Áine Myler, SCSI Director General; SCSI President Des O’Broin; and, Kevin Hollingsworth, Omega Surveying.

The vast majority of apartment developments in Ireland have not set aside adequate funds for maintenance and refurbishment according to a new SCSI report.
According to the study, three out of four property managers say less than 25% of apartment buildings have set aside adequate funding for such works.
In addition, almost 90% of managers say apartment buildings under their management have been forced to raise additional levies. This can arise when inadequate funds have been set aside and urgent spending is required. The report, which is entitled, ‘Sinking Funds in Apartments – Meeting the Challenge’ was launched ahead of the SCSI’s Property Management and Facilities Management conference, which took place on October 17 in Croke Park.
Lead author of the report, Finbar McDonnell, described the findings as worrying and said the issue needed to be addressed urgently, not just by Government, but also by individual apartment owners: “The vast majority of property managers told us that the reason apartment buildings haven’t set aside sufficient funds is because property owners do not wish to pay increased service charges now, in order to build a sinking fund for the future. “We believe the Minister for Housing, Planning and Local Government should stipulate that a Building Investment Fund (BIF) report must be prepared by an owners’ management company (OMC) every five years, and that AGMs should take account of such reports in deciding on sinking fund annual contributions. The non-payment of service charges in MuDs is a related issue that needs to be addressed, and we recommend that changes be introduced to make it easier for OMCs to collect service charge arrears,” he concluded.