Q We are living in a ground-floor apartment in Dublin 4. While the building was built within the past six years, with the cold weather approaching our heating bills have increased while the apartment still feels cold.
We recently noticed that the property management company has turned off the heating to the communal areas to reduce their bills. However, as the internal walls of our apartment are uninsulated our heating is essentially leaking out leaving us with a cold apartment and high energy bills.
Is it legal for the property management company to turn off heating like this? As the building was designed to have these areas heated we cannot heat our home to any bearable living standard.
A The Lessor/Owners’ Management Company (OMC) covenants are noted in the lease agreement binding it to its members. You will be able to ascertain the specific obligations the OMC has to you and your fellow members in this section which will then permit you to clarify whether or not a breach of contract occurred. The OMC’s contractual obligations to deliver such services are almost always subject to the service charge being paid.
The plaster board in your apartment is yours and the space and structure of the building thereafter is the common area and the property of the OMC. There are many options to consider regarding the improvement of heat retention in residential properties. One option you have as an apartment owner is to increase the depth of the plaster board in your property which in turn will improve the heat retention but you will have a lower ceiling and less internal floor area if you do this.
Another downside to this choice is that you will need to redecorate. Other costs to consider are the refinishing of sockets, switches, sensors and careful consideration must be given to potentially replacing large furnishings that may no longer fit in any given room. The positive of this remedy is that you may undertake the works with little interference to other OMC members in the process. Another positive to doing this is that the sound transfer to and from other areas of the building, if done correctly, will be reduced.
The Home Renovation Incentive contained in Budget 2014 allows taxpayers to recover 13.5 per cent of qualifying home improvements outlay that exceeds €5,000 – this is capped at €30,000.
SEAI grants are available to buildings constructed before 2006, so unfortunately you do not qualify for those.
Alternatively, the majority of the OMC voting members must agree to the capital investment in the building at a general meeting. It would be worthwhile asking the board of directors of the OMC to place this issue on the general meeting agenda and to be supported with market quotations for improvements prior to making any improvements yourself.
Paul Huberman is a member of the Property and Facilities Management Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie
Q My neighbour and I have the same query in relation to the new Home Renovation Incentive (HRI). Could a homeowner install new windows, insulation and get building work done by direct labour by established companies, pay the companies individually and apply for the grant as a cumulative or does it all have to go through one recognised building contractor?
A The Home Renovation Incentive (HRI) was announced in the recent budget and came into effect from October 25th.
Firstly, in order for the homeowner to qualify for the HRI, the home in question must be owner occupied and the local property tax and household charge must be up to date.
Windows, insulation and general building work all fall under qualifying expenditure, as do extensions, attic conversions, plumbing, plastering, tiling, painting and the like. Items which do not qualify include kitchen appliances, furniture, carpet and blinds.
It is not necessary to go through one builder to claim the benefit – a homeowner can employ several different builders/tradespeople but each must be Vat registered and tax compliant. The minimum total cost of qualifying expenditure is €5,000 excluding Vat, which can be spread across a general builder, plumber, electrician or tiler, for example. Essentially, each trade will be treated as a builder for the application. This expenditure would allow for a tax credit of €675. The maximum amount of relief claimable is €4,050, which is for qualifying works of €30,000 and upwards. The total cost of works can be in excess of €30,000; however no further relief is claimable over €4,050.
All works, payments and claims must be registered electronically. The homeowner can view the Revenue Commissioners’ website to ensure that all their payments made to the building contractor are entered onto the Revenue’s online systems. It must also be noted that there are restrictions where the works are funded by an insurance company or part grant-funded.
Finally, the works must be carried out and paid for after October 25th and before December 31st 2015, at which point the Home Renovation Incentive ceases. Homeowners must pay for the full cost of the work. The tax credit is payable over the two years following the year in which the work was carried out and paid for.
Further information can be obtained at www.scsi.ie and www.revenue.ie
Andrew Nugent is a chartered quantity surveyor and vice president of the Society of Chartered Surveyors Ireland
Q I would like if you could advise me on the costs involved in selling my home, particularly the costs up-front to estate agents.
I know that during the boom years, there were glossy catalogues for even the most ordinary house, but I hope that this has changed. I would like to keep the up-front costs to a minimum as we are talking about a two-bedroom house.
A The amount of up-front costs associated with selling a property can vary. Some costs are unavoidable, for example legislation requires that there is a BER (building energy rating) certificate. This should cost no more than €150 and your agent will recommend an assessor. Most agents will charge up-front for listing the property on websites such as MyHome.ie and for a sign if you are having one put up. Brochures are an additional cost but most agents can provide much cheaper alternatives to high gloss card.
The most important thing is that all outlays are agreed in advance and detailed in the letter of confirmation of instructions. The agent must issue this letter and you must sign and return it before marketing commences. It is reasonable for the agent to ask for an advance to cover all or part of the agreed outlay as carrying the cost of outlay on numerous properties is a huge strain on cash flow.
Sometimes people lose sight of the important factors when choosing an agent. A difference of a couple of hundred euro in outlay or a fraction of a percentage in sales fee is generally much less than one bid on your property so choose the best agent; not the “cheapest” one. Selling your house is probably the largest transaction of your life so choose wisely and don’t focus too much on small cost differences.
You should also ensure the agent is licensed by the Property Service Regulatory Authority and ideally a member of a professional body.
Simon Stokes is a chartered surveyor and estate agent and chair of the Residential Property Professional Group of the Society of Chartered Surveyors Ireland
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Advice given is general and individual
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