[Article] Non-payment of service charges is a growing problem

Published on: May 19, 2010

A survey by the Society of Chartered Surveyors (SCS) – in conjunction with the Irish Property Facility Management Association (IPFMA) – reported that an increase in the non-payment of service charges in 2009 was recorded by around 90 per cent of property managers. Investors were the largest proportion of those withholding payment.

Around 44 per cent of the developments surveyed suffered from a situation where services had been decreased or withdrawn due to lack of funds. In the years to 2009, 62 per cent of respondents said 80-100 per cent of service charges were paid, yet this dropped to 25 per cent in 2009.

The shortfall in service charges is resulting in more occupiers/investors refusing to pay charges as they do not wish to continue paying for services that are not being delivered. Without funds, properties cannot be maintained.

You can read the rest of this article on the Irish Times website.

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