Appearances do count and preening an apartment development to it's full market potential takes more than slapping a few coats of paint over the cracks and hoping for the best. A consultant can open people's eyes to the subtle use of colour and it is worthwhile consulting a good landscaper because in the end it is all down to first impressions. Ship-shape common areas are another indication of a well-run block. Good quality carpets that are cleaned on a regular basis or are fibre-sealed or treated with Scotchguard to minimise stains are important. It may well be worthwhile employing the services of a colour consultant, says Macken. "Otherwise it can end up with a really boring scheme of beige carpets and magnolia walls. If you ask eight people on a management committee to choose a colour scheme, the likelihood is that nobody will want to cause offence and they will opt for what is safe. A consultant can open people's eyes to the subtle use of colour."
Attention to detail is also important. In the common areas, automatic door closers are a good security precaution, light bulbs should be replaced and the lifts should be regularly serviced, which entails having a reliable service contract in place. Some older blocks are now installing security gates which come in hydraulic, sliding and dual gate form and cost from £4,000 to £8,000 (#5078-10,157). While not foolproof, they act as a deterrent to intruders and can be combined with intercom systems and security cameras.
The complex may need to be repainted every five to seven years, depending on its location and the type of facade. If it's brick, the maintenance costs will be less than for a rendered building that needs to be repainted every couple of years. Wooden windows should be properly treated and the roof should undergo regular checks as should gutters and drainpipes. Older blocks may need to consider window replacement.
Macken believes that people who move into apartments are often unaware of the amount of money constantly ploughed into the scheme for its upkeep.
A well-managed sinking fund can spare residents that equally sinking feeling of being billed for a big maintenance or repair job. Efficient backroom administration is crucial if a development is to look its best, says Shane Daly of Gunne Residential.
In the usual scenario, an apartment development is sold, the freehold is handed over to the management company and supervised by a committee of residents, a management agent is chosen and it collects fees and carries out administration for the development under the direction of a newly formed company. Some smaller blocks bypass the need for a professional management agent and have taken responsibility for the maintenance and administration of the scheme themselves. The advantage of apartment owners doing it for themselves is that they save on the management agent's fees and can economise by sharing tasks such as tending the gardens and keeping accounts. But the intricacies of running an efficient block can be a headache, such as organising insurance, policies, observing fire and safety regulations and making prompt annual returns to the Companies Office.
To give an idea of how a management company budgets, we can take the example of a block in Harold's Cross in Dublin 6W which has an annual service charge of £360 (457). For a scheme of 48 apartments which amounts to £17,280 (21,941), the management agent will take a fee of £520 per month (660) which will amount to a total of £6,240 per year (7,923). The rest is spent on insurance which amounts to approximately £3,000 (3,809), and ongoing repairs and other expenses such as electricity, carpentry, legal and auditing fees which amount to £5,000 per year (6348) which is transferred to the sinking fund.
