if you're an apartment owner and you are unhappy with the performance of either the management
company or the managing agent and that's quite a common complaint that i come across
apartment owners apartment renters who are not happy with the service has been carried out by
the management company for the apartment property owners and often what happens is
the person who is dissatisfied the apartment owner will stop paying the management company fees
and they will think that that's a good strategy to adopt and that'll put manners on
the management company and put manage manners on the managing agent the difficulty with that though
is that there's an element of shooting yourself in the foot because what can happen is if the
management company don't have the money coming in they're unable to afford a good
professional managing agent and they're unable to afford the necessary maintenance persons
and various other trades that they might need to maintain the development in a good healthy
professional state and that being the case then there's a downward spiral because what happens
then is there's a sort of a ratchet effect other apartment owners will see that the work is not
getting done services are not great grass is not being cut lifts are not being maintained common
areas are not being maintained roofs are not being looked after leaks and so on and so forth
there isn't regular maintenance there isn't a regular painting and it's a downward spiral
other apartment owners will stop paying there's less and less money for the management company
less and less money for the managing agent and
very soon the whole thing could become quite shabby and quite ill kempt or unkempt rather
so it's easy then as i say to down tools if you're the apartment owner and stop paying and the
difficulty then for the owner management company is that they must try to pursue you for the debt
essentially and it is a debt collection matter and you do all the money because it's in your lease
but the difficulty is there's no money then for the management company to pursue you for the debts
and the debts then are increasing and the place looks worse and worse but where you
can backfire on you and where there's an element of shooting yourself in the foot
is when you go to sell the place when you go to sell the property a you've got this massive
outstanding debt to the managing comp management company which would have to be discharged
and would have to be discharged out of the sales proceeds but b the management company finances
may be of such a state as a consequence of people not paying the way that a potential purchaser of
your apartment may quite frankly run for the hills may say that place is badly run there's no money
there's difficulties with the management company there's difficulties with tenants not paying
there's no money to get a solicitor to do the debt collection thing and the whole thing is a
bit of a mess and they may well just go somewhere else and buy an apartment in a development that's
more well managed and the finances are in better order and there's a good sinking fund and reserve
fund to carry out repairs necessary repairs and so on so be careful if you're a management or an
apartment owner other or if you have perhaps a house maybe a duplex maybe some sort of a
terrace house in a multi-unit development and you're supposed to pay the management
company fees and you're not paying the management company fees and you think this is a good idea
then think down the line think three years ahead think five years ahead and think about selling
the property because when you go to sellers if the management company is under its accounts is
a hot mess then the value of your property is going to be diminished and that is something
obviously that you'll want to avoid but you can avoid it by paying your management company fees
and agitating them or making representations at the annual general meeting and so on to try to
ensure that the thing is done properly that there's a good managing agent appointed and
so on but it's a self-defeating exercise to just down tools stop paying the management company fees
because that will actually make things worse and it will ensure that later on if you decide to
sell your property you're going to be in great difficulty because you might have difficulty
getting a buyer and if you do get a buyer he's one who may be looking at the management company
and saying this is a potential nest of vipers i'm going to go somewhere else hope you find
the video useful if you do i would appreciate if you gave it the thumbs up down below thanks a lot
you