Real Cost of Apartment Block Maintenance
The SCSI Real Cost of Apartment Bock Maintenance report examines the current challenges with setting aside ‘sinking fund’ provisions in multi-unit developments (MUDs) in Ireland.
The focus of the report is to assess the levels of funds being set aside each year by MUDs, and to compare this with estimated costs for repairing, maintaining and renewing ‘common areas’ in apartment blocks (e.g., roofs, lifts, balconies and car parking).
Key Report Findings:
- Approximately 1 in 10 apartment developments do not have a Sinking Fund in place
- The main reason Sinking Funds are not adequately funded is apartment owners’ unwillingness to pay higher charges and lack of knowledge about Sinking Funds
- Case studies in the report show properly financed Sinking Funds require contributions of circa €2,000 per unit per year
- Currently apartment owners are typically contributing between €200 and €300 per unit annually
- SCSI says average annual shortfall of €1,800 per unit owner is not sustainable
- “Apartment owners are facing significant financial risk in the future unless funding gaps in their development’s Sinking Funds are addressed”
- SCSI calls for guide figure of €200 per year as a Sinking Fund contribution in the MUD Act of 2011 to be removed
