The Financial impact of Property Management Companies on the Sales Price of Real Estate Dwellings in Ireland - Assignment Example

1 Topic that is being Investigated The financial impact of Property Management Companies on the Sales Price of Real E Dwellings in Ireland. 1.2. Research Question : Do Property Management Companies affect Sales Price of Real Estate Dwellings in Ireland ? 1.3. The Methods of Research : For the purpose of our Research, we would be employing the following Methods of Research in order to arrive at the correct results: 1. Through Questionnaires Methods 2. Through Structured Interviews with Directors/Owners of Property Management Companies and other concerned personnel 3. Through Case Studies 4. Through Internet Searches of Authentic websites relating to the area of research. 5. Through Published data on the subject gleaned from reliable Government and Non- Governmental sources. Through Questionnaires Methods : Printed questionnaires need to be circulated to the Owners/Directors of Property Management Companies and the Management Agents appointed by them for the operational aspects of the various dwelling Houses. A sample Questionnaire to be circulated and answered by them 1. The findings of this Questionnaire is important since they form the core group of this research. Again, a similar Questionnaire needs to be circulated to the Tenants/ Flat Owners/ Auctioneers, 2. The views of these communities are important since their viewpoints regarding the management and functional aspects of the Property Management Companies form the backbone of this Research Study, and this would help gain a valuable source material for arriving at a consensus in this Study. The Questionnaires submitted to the Directors/Owners of the Property Management Company would be schematically different from that circulated to the Owners/Tenants since the scope of reference is different in each case. However, for the purpose of this Research, both these types of information are very necessary 2. Through Structured Interviews with Management Agents of Companies .This would gain an insight into the inside workings of the Complexes the area in which advantages and disadvantages accrue and the ultimate role of Property Management Companies in the determination of Sale Prices. The interviews would also focus on the incidence of liquidation of certain PMCs and the reasons thereof. Also adequate internal measures need to be considered for avoiding such occurrences in future. 3.Actual case studies need to be taken up with regard to the topic of Research to substantiate the claims mentioned in the Study. The case studies would reflect the Statututory compliances with regard to Corporate Laws pertaining to Accounts and Audit and how PMC function in these areas and, since the results of non-compliances would mean that ” the management is subject to penalties, fines and indictment as per existing Law..( Source : The Company Law Review Group Position Paper: July 2006 )(National Consumer Agency Publishes Report into Property Management Companies : National Consumer Agency 2006) ( www.nca.ie ) . 3. Internet Research Information regarding the Scope of studies from validated and authenticated websites delineating the information required. The important Websites would include Companies’ Registration Office (CRO), Website of Department of Health (DH) and other legal matters impinging the functioning of PMCs. The data that would be collected would be as follows : 1. The number of Property Management Companies in Ireland – their capital structure, composition of their Board of Directors and financial statements for last several years and profitability studies. 2. The relevance of Service Charges paid for maintenance work and its composition and how arrear and delinquent service charges are realized from apartment owners, and if not realized, suitable measures need to be set in place for their realizations.. 3. Incidence of Sinking Fund allocations and their receipts and utilization as per company’s policy.. 4. Whether PMC have ever been struck off by the CRO and why- detailed analysis. 5. The incidence of liquidation of Property Management companies in Ireland, arrived by geographical distribution. 6. The problems faced by Owners/ Directors of PMC and how they are being tackled. 7. The difficulties envisaged by Tenants/ Owners/ Lessees of Ownership apartments. 8. How the imminent legislation making Registration of Property Management Companies mandatory would underpin its future performance and accountability. 9. How structural changes in the constitution of PMC’s could enhance efficiency and transparency in their accounting methods. Activity Persons involved Timeframe Circulation of Questionnaires and replies Managing Director/ Owners/Tenants/auctioneers 16 weeks Structured interviews and feedback from respondents Management Agents/ Owners/lessors/ tenants 24 weeks Case studies Present Scenarios 12 weeks Internet Searches Websites 10 Weeks Secondary Sources Journals/ Govt. Publications 8 weeks 1.4 TIME TABLE : Research on Property Management Companies. 1.5 Problems connected with the Research ACCESSIONAL PROBLEMS The position of PMC’s in Ireland is an unregulated market and devoid of legal bindings. Moreover, effective legislature for monitoring its activities are still being fully implemented.Since the research undertaken is for assessing the scope and functionality aspects of PMC’s, a thorough study would be required using the above methodology. There may be bottlenecks relating to availability of respondents and their inclination to provide the needed information for the purpose of this research. Further, information likely to compromise the position of the Management Company may not be easily forthcoming. Since the PMCs work in as highly competitive environment, sensitive information may not be readily available. Therefore, it is necessary to exercise care and diplomacy in eliciting required information from them. Since the objective of Research is to improve and sustain the performance of PMC’s, the collection of Data should aim at presenting the correct position and evaluating of its results accordingly. ETHICAL ISSUES The subject of ethical issues remain important because PMCs may have reservations about sharing crucial and confidential information about their workings with outsiders and it may be considered a breach of breach of confidentiality to disclose company matters to 3rd parties. However since the issues in hand are of a specific nature and do not seek privy into confidential information, it may not be considered as falling within the ambit of breach of confidentiality. Moreover, the information outsourcing applies with similar effect to nearly all functioning PMC’s, and the final result of the research would reflect the findings of totality of the study, and this would not cause any detriment to any particular individual or organization. MOTIVATIONAL ISSUES The motivational issues connected with this Research is the acquisition, dissemination and utilization of information relating to the functioning of PMC’s and how its functioning would effect sale prices-thus the performance of PMC,s have to be critically evaluated and analysis rendered devoid of bias or errors The effect of good management companies is that investors have no difficult in letting their properties’ [National Consumer Agency Management Fees and Service Charges Levied on Owners of Property in Multi Unit Dwellings October 2006 ] http://www.consumerconnect.ie/eng/Hot_Topics/Campaigns/management_companies_report_final.pdf A study on this aspect would promote the efficiency ,efficacy and effectiveness of PMC’s on a long term basis since a holistic approach to the entire matter would be undertaken along with its financial implications and how they serve to affect sale prices. The cost and revenue factors governing PMC’s also need to be considered and evaluated. Then only the correct and authentic motive of the research could be said to have been truly accomplished. Works Cited Source : The Company Law Review Group Position Paper: July 2006 )(National Consumer Agency Publishes Report into Property Management Companies : National Consumer Agency 2006) www.nca.ie National Consumer Agency Management Fees and Service Charges Levied on Owners of Property in Multi Unit Dwellings October 2006 ] http://www.consumerconnect.ie/eng/Hot_Topics/Campaigns/management_companies_report_final.pdf Read More