The property management industry should be regulated to protect the consumer according to a new report published by the National Consumer Agency (NCA).
As part of 25 recommendations for the industry the report also called for qualifications for those working in the sector and protective measures for consumers relating to transfer of control of the management company to the consumer.
Ann Fitzgerald, director of Consumer Affairs said research showed that young people who bought apartments or homes in multi-unit developments were unsure of their rights or how the management company and agent system works.
"With an estimated half a million multi-unit dwellers in Ireland, we believe the time has come for transparency in the market and for the Government to prioritise legislation to regulate the area. The industry itself also needs to set standards which protect consumers and enhance its reputation," said Ms Fitzgerald.
Independent TD for Kildare North and campaigner for property management regulation, Catherine Murphy welcomed the report's recommendation for regulation of the industry.
"Most people when they look at an apartment are only asking the question is it south facing. This is much more important than that. This is [property management] a very complex issue.
"Primary legislation of the sector is urgently needed," Said Ms Murphy.
Ms Murphy added that there should be an obligation for solicitors to advise buyers in detail on any property management structure associated with their purchase.
She also welcomed the NCA's information booklet advising on the current situation with property management.
The key recommendations contained in the report include:
- The National Property Services Regulatory Authority Bill should be prioritised
- The regulation of management companies should be a matter for the National Property Services Regulatory Authority
- Service charges should be determined by a professional quantity surveyor and the obligations set down in the lease between the buyer and developer
- To alleviate confusion between management companies and management agencies, once the developer has handed over control of the complex to the owners, there should be a name change from management company to Owners' Company
- Transfer of control of the development should take place within three months of the completion certificate being produced and planning authorities should ensure speedy transfer of control through the planning system
- Voting rights should be restricted to one per household, irrespective of tenure