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Service charges for gated communities
Rank: New-farer Joined: 8/7/2012 Posts: 39
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I apologise if this has been tackled elsewhere but I'm dismayed at some f the things estate developers are being allowed to get away with! I have been put in a position where having purchased an apartment I have been ambushed with other misc charges for maintenance. Just to name some- swimming pool- shs.2000, landscape maintenance-ksh.3000, security guards-ksh.3000, security lights-ksh.1000, communal areas cleaning-ksh.2000, standby generator-ksh.2000. Just these add up to ksh.13k per month not to mention county govt wants rates etc. The funny thing is that these guys want to offer the services themselves and they show you some obscure small print in the agreement as your consent for these charges! I bought this apt as an investment and at this rate I feel I'm making more money for the developer than for myself! It's like even as the developers sell these properties and make billions they're still unwilling to let go and they still follow the buyers to strangle them with more charges! Please Wazuans make sure when you buy these so called gated community properties you read the small print to avoid these sharks!
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Is it monthly or annually? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: New-farer Joined: 8/7/2012 Posts: 39
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@dunkang, those charges are monthly!
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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How many shares does each tenant have in he management company?
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Rank: Member Joined: 8/5/2009 Posts: 597
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@Kanjora1 there seems to be a misinformation from the estate management. As from my experience when i bought the apartment paid those charges P.A heck not monthly and this was coz there were no tenants as yet. Starting the 2nd year the service charge is being paid by the house occupants as they are the once who enjoy/utilize them. Sorry if you are owner occupier but still the charges are exorbitant and just seek clarification. Taking a simple maths? Units 200, Per unit pay 13,000.00 Per month income to management=200*13000=2,600,000. Can they account for this??? The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Always read the fine print... possunt quia posse videntur
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Its normal...I pay 12,500 a month for security, common area elec, generator, landscaping, garbage collection, maintenance etc. But I pay to the management company that is run by a committee of tenants... Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 7/28/2006 Posts: 30
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Geez you peeps pay quite a tidy sum for services. At my hood (dense populated) we pay 1.5k (security, garbage and common areas lighting & cleaning). However on purchase, developer insisted on 1 year payment in advance (fine print). Recently residents kicked out developer in hostile takeover of management company and changed service providers. However, we are still waiting for long overdue AGM to determine if new committee is benefiting or we will get a reduction in rates following change of providers.
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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Your service charge = rent is some equally decent neighbourhishoods. Aish dunia ni duara kweli.... Thieves
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Rank: New-farer Joined: 8/7/2012 Posts: 39
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I think I'll soon float the idea of having our own management company with my neighbours to see whether we could kick out the sharks! I can't see how you can legally sell a property and then insist on being its manager at extortionist rates!
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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The developer may have representation, but services should be tendered by tenants, at market prices. Ours works very well, they kick out lousy vendors and are always making improvements. Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 8/16/2012 Posts: 660
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mwasjd wrote:Geez you peeps pay quite a tidy sum for services. At my hood (dense populated) we pay 1.5k (security, garbage and common areas lighting & cleaning). However on purchase, developer insisted on 1 year payment in advance (fine print). Recently residents kicked out developer in hostile takeover of management company and changed service providers. However, we are still waiting for long overdue AGM to determine if new committee is benefiting or we will get a reduction in rates following change of providers. *Key* @kanjora Small print Vis-à-vis Management company compositionLive and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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Service charge depends on the number of units, the less the units, the more the cost. The developer cannot force a home owner to pay service charge or to manage thhe same on their behalf. The ideal situation is if you buy an apartment, there should be a company set up to own the land and a share in the company should be linked to owning a unit of apartment. This company should then double up as the management company and control the service delivery to the residents. You set up a committee that reviews the cost and quality of services the residents wants and agree on the monthly service charge meant to meet the same costs. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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Obi 1 Kanobi wrote:Service charge depends on the number of units, the less the units, the more the cost.
The developer cannot force a home owner to pay service charge or to manage thhe same on their behalf.
The ideal situation is if you buy an apartment, there should be a company set up to own the land and a share in the company should be linked to owning a unit of apartment.
This company should then double up as the management company and control the service delivery to the residents.
You set up a committee that reviews the cost and quality of services the residents wants and agree on the monthly service charge meant to meet the same costs. if the house is an investment who pays landlord or tenant? also who are the ac signatories and how are they chosen I may be wrong..but then I could be right
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Rank: Member Joined: 5/8/2013 Posts: 386 Location: Nyali mombasa
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Very nice idea, all the buyers of the apartments should own shares in the company giving or buying the services, they should do an audit of services and their costs per month, and then share the cost equally among the share holders, once the developer has sold the units he should not hang around benefitting from the service charges, a security guard is paid 10k, cleaning lady/man 10k, commmon elect and water pm is around 20k so around 50k should be enough for around 20 units.
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Rank: Member Joined: 1/14/2014 Posts: 178
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The only reason the developer should be around controlling things is if there are units that remain unsold as this is the mandate of the developer to ensure that they're sold and not the residents. Once all the units are sold, the developer should clear and close the door behind themselves. Some developers may even cede control of the management company when a substantial majority of the units are sold. With 100% control of the management company, the residents can then set and control the service charge appropriately. Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it – Peter Lynch
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Nera is currently eyeing to create an owners company, they scheduled a meeting on 11th of this month for owners of Nyayo embakasi be very careful.....open your eyes
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