Paudge Connolly (Cavan-Monaghan, Independent)

The Residential Tenancies (Amendment) Bill aims to provide a regulatory framework for property management companies and management agencies. Apartment and home management companies have proliferated in recent years and have radically altered the implications of home ownership. It is becoming an additional payment burden alongside the mortgage repayments for new home owners. Often, it is a substantial amount which young home owners cannot afford.

These companies generally accept responsibility for common areas such as gardens, open areas, lifts, etc. Often, it can be two years into a tenure before it is realised work is not being done and contracts are not being maintained. For many new homeowners it is often too late. At that stage the management company does not care as it has received its fees. Management companies often do not file returns to the Companies Registration Office. There can be a charge against the estate management company which has a knock-on effect when people try to sell their homes.

It can also have a negative knock-on effect on the price of the property. When a starter-apartment owner attempts to sell on the property, the value may have dropped because the area it is located in is not maintained. Most first-time buyers will start off with an apartment. Nationally approximately 40% of building applications are for apartments while it is 70% in Dublin. It is a new way of life which we have been used to seeing in Canada and America. Problems will emerge down the road on this issue if it is not addressed soon.

I know of one situation where the ESB was owed €45,000 by an estate management company. The ESB would have been within its power to switch off the electricity supply. It left the homeowners in an awful situation. Legislation is urgently needed in the area. I compliment the Members who introduced the Bill.

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