Buying And Living in a Multi-Unit Development Property in Ireland
6. Managing Agents
Continued6.6 What should I do if I have a complaint about a service provider e.g. a managing agent?
The contract between the managing agent and the management company should specify the process for dealing with complaints from owners.
If you are dissatisfied with the performance of your managing agent, you should always raise the issue with the management company, as it is the entity with the contractual relationship with the managing agent.
Where there is a persistent problem with an agent, the management company directors, under the direction of its members, should investigate the cause of the problem.
If a dispute does arise between the management company and the agent in relation to their performance or aspects of the terms and conditions of the contract, it is advisable that the management company attempt to resolve the matter with the agent.
The company should keep copies of all correspondence (including emails if you have communicated in this way) and records of phone calls with the agent.
Where you are dissatisfied with the level or quality of service being received from the agent, stopping payment of the service charge is not advised, as this is a breach of your contractual obligation to the management company under the terms of your lease.
Where a proportion of owners do not pay their service charges, the result may be that the managing agent ceases to provide services to the development.
This can affect the value of the development and individual units.
6.7 Can the management company cancel the agent's contract?
Depending on the contract between the management company and the agent, the management company may be entitled to terminate the contract and to engage another agent to conduct the work.
If the management company wishes to cancel the service of their managing agent, the means by which this is done should be clearly outlined in the terms and conditions of the contract between the agent and the management company.
The management company must however, obey all legal requirements set down in the contract with the agent.
6.8 Managing agent contracts
It is very important when employing an agent, or, any other service provider, that the management company specifies the services and related costs to be provided in writing.
The written contract will set out the obligations and responsibilities of both the agent and the management company.
The management company should ask the agent to provide clear and precise information in plain English as to the services they are agreeing to provide, how they propose to provide them and the frequency and quality with which they will be delivered.
The general obligations and responsibilities of the managing agent should always be clearly set out in the contract and it is vital that all owners are informed as to what services they should expect to receive.
If there are any specific services that the managing agent is not responsible for providing, for example enforcing house rules, it is equally important that owners are made aware of where responsibility lies.
The management company should ensure that all owners are aware of any such information.
In the event of a dispute between the parties, the contract is the critical legal basis for resolution.
To ensure that the terms and conditions of the contract safeguard their interests, management companies should consider seeking independent legal advice before entering into a contract with a managing agent.
6.8.1 What should be in the contract?
Contracts may differ in many ways and there are no hard and fast rules governing what terms should be in a contract.
At present, there is no standard contract which management companies and the managing agents that they employ are obliged to use.
Through the work of the Multi-Unit Development Stakeholder Forum, the National Consumer Agency has developed a comprehensive set of practical guidelines for consumers unfamiliar with what should be considered and agreed between both parties and what should be set out and covered in the contract (see Appendix 3).
6.9 Choosing a managing agent
Choosing a managing agent is one of the most important tasks a management company will undertake.
The amount of money you have to pay for your annual service charge is greatly affected by how competitive and competent the agent's service is.
The quality of the agent's service is also vital to the long-term value of your unit because if the development is maintained to a high standard it is more attractive to potential buyers.
Management companies should always keep costs under review and where appropriate, require agents to submit competitive tenders or provide competing quotations.
Read a checklist of what to look for when choosing a managing agent or other service provider, and potential questions to ask prospective managing agents.
Even where a management company asks the agent to do things for them, the company is still legally responsible for any neglect, omission or mistake by the agent. This means they must be sure that the agent is able to pay for compensation or damages.
Professional indemnity insurance is an important requirement for most professional businesses.
It protects firms and their employees against claims which may arise as a result of their professional conduct, neglect, error or omission.
6.9.1 Sample covering letter inviting tenders for managing agent services
Download a cover letter template.