Property Market Analysis

Addressing rising costs is vital to owners’ management companies

Companies in all sectors are grappling with inflation, including the crucial function of setting budgets. OMCs are no different and, as Finbar McDonnell writes, getting their budget right for 2023 will be key

Inflation and the rising cost of energy, insurance, wages, building materials, professional fees and new services such as electric vehicle charging points means getting the annual budget right is crucial for Owners’ Management Companies

If owners’ management companies (OMCs) – the entities that manage the common areas of apartment complexes and other multi-unit developments, including duplexes or commercial units – haven’t already agreed their budget for 2023, they will need to do shortly. This is to facilitate the sending out of service charge statements.

Key stakeholders are the OMC board and the managing agent as these develop a draft budget for agreement by the property owners. Crucial inputs are: