Law ‘ill-suited for apartment problems’

THE country’s consumer watchdog said yesterday there was more protection for someone buying a €30 kettle than a €300,000 apartment.

National Consumer Agency chairwoman Ann Fitzgerald made the claim as the Government said it is to establish an interdepartmental committee to develop legislation to govern the operation of property management firms for apartment complexes and other multi-unit developments.

Tánaiste and Justice Minister Michael McDowell said the Government was determined to address the problem and difficulties that had arisen in recent years with the rapid growth in the construction of apartments.

Official figures show more than 500,000 people live in apartments in Ireland. Over 20% of housing units built nationally in 2005 were apartments, with the figure hitting 57% in Dublin.

Media reports recently highlighted examples of how some management companies had introduced rules preventing residents from parking commercial vehicles and cars over two years old in some estates.

Addressing a conference organised by the Law Reform Commission in Dublin yesterday, Mr McDowell said the current legal framework was “ill-suited in many ways” for dealing with problems arising with this type of accommodation.

The Government is preparing draft legislation to establish a Property Services Regulatory Authority to oversee the operation of property management companies and their agents.

Mr McDowell said new legislation should take into account that the owners of apartments, as members of a property management company, may have little experience of running a company as well as having little awareness about their rights and responsibilities.

He admitted there was “an element of sag” between Government departments and bodies in addressing the issue.

He also said one and two-bedroom units have lead to a “more transient residential population” which has little interest in, or commitment to, the governance and maintenance of the complex.

He welcomed recent guidelines issued by Environment Minister Dick Roche which recommend not more than 15% of units in any new development of 20 or more units be one-bedroom apartments.

Ms Fitzgerald recommended estate agents should provide potential apartment buyers with details of existing and projected service charges and sinking funds.

“Two identical apartments in two adjoining developments under different management may represent very unequal investments when the full financial details relating to the management of the properties are taken into account,” she said.

“The current reality is that consumers in Ireland have more protection when buying a €30 kettle than a €300,000 house or apartment in a multi-unit development. That situation cannot continue and cannot await formal regulation.”