Galway Bay Cottages IRE - Help with sudden increase in maintenance fee

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

There are 408 weeks in this resort from what I understand. Some are owned by the "Vendor" still, which is the Management Company. Most are owner owned by people like me.

Also, the management company is Plc in my contract, but I notice they have switched to an LLC. Not sure what that is all about.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

As to the budget:

Most resort budgets I have looked at show you the previous year's actuals by line item along with the coming years projections. That absence is a red flag.

Most budgets also give the number of owners so that you can do the math to see the calculation.

The euro is actually cheaper right now than it has been in past years.

There does not seem to have been provision for reserves in the past, which is major mismanagement. It also contributes to fee increases as this juncture.

Management costs seem high.

The advertising for rentals, is this for members weeks or for developer owned weeks? If the latter, this should not be an member expense.

The absence of the income side is also telling. There is usually some income other than the M/F itself, such as interest income, late fees, etc. How is that accounted for?

What is done with delinquent weeks? Are these foreclosed upon, and if so who buys them?

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

This is the first year I think they sent a budget out, AFAIK. I really didn't pay too much attention to it previously, just paid it.

They cited the RISING euro as a major contributor to increasing the fee.

There are 408 weeks. Most are sold. Some are still available for sale.

The management costs seemed very high to me too. There were 4 heirs to the management company. So now it's four splitting profits (which I imagine are small to none) vs just 1. I spoke to one of the heirs and he said they pretty much do not have an interest in running a timeshare company as they have jobs, family, etc. I understand that as I have the same but they should sell it or step aside if it's not worth anything.

Re advertising they have a small website and do no advertising that I am aware of.

Re the delinquent weeks, they said they do not foreclose as it is too expensive.

I need to scan and post my contract and certificate of ownership.

That's about what I know for now.

Any help is very welcomed.

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

There are 10 units that are timeshare and 2 that were owner owned. I know that the two that were owner owned had been for sale in the entirety...I found a real estate listing for them on an Irish Realty Site but don't remember which one as it was a few years ago.

We never before received a budget, nor a P&L. I also saw listings for http://www.vrbo.com/351583 and found this http://www.daft.ie/galway/short_term...odation/barna/ http://medresorts.net/resortdetails.aspx?id=1685 and another here this is one of the cottages pictured that is timeshare. The wholly owned units are single story.

FOR SALE - FORRAMOYLE EAST, BARNA VILLAGE, CO.GALWAY


BUNGALOW NUMBER 9. BUNGALOW NUMBER 10.

TWO 2 BEDROOM COTTAGES, WITH SEA VIEWS.

Two excellent semi-detached two bedroom cottages to be sold as one property. Set in a fabulous location overlooking Galway Bay, and the Hills of Clare, close to Barna Village, with its Shops Schools Beach and with Barna Golf an Country Club in the area. This is a prime investment opportunity for investors or owner-occupiers who wants to acquire a superb property in the Barna Village area. Each cottage will be sold fully furnished
Bungalow No. 9 Comprising: Living Room /Dining Room, Kitchen, Bathroom, Two Bedrooms. (one en-suite) Outhouse, Storage fired central heating and Solid.
Outside: Tarmacadamed Car parking area, Gardens to the front and rear

Bungalow No. 10 Comprising: Living Room /Dining Room, Kitchen, Bathroom, Two Bedrooms. (one en-suite) Outhouse, Storage fired central heating and Solid.
Outside: Tarmacadamed Car parking area, Gardens to the front and rear.

Price: €295,000 (For The Two Cottages) SOLD

Here is the link,
http://www.barnaestates.com/residential.htm

scroll down the page.



And so the 2 wholly owned units have been sold...no wonder they want out of the timeshare business,

Joy

[elgato15 Junior Member Find all posts View Profile Close elgato15]

I also own one week there and my brother owns 2 weeks. I know that when we bought many years ago at the beginning Bill told us they owned the cottages outright and not by mortgages. I notice that it doesn't mention what the new owners get for rental income! You can rent a week cheaper than owning one. At this point I just want out of there. Being retired we can not afford to pay these rates.

[elgato15 Junior Member Find all posts View Profile Close elgato15]

My brother and I would be willing to sell our combined primetime 3 weeks for $1.00 each effectively immediately. I emailed & left a phone message to them indicating that but have heard nothing. If I sold it on ebay for $1.00, buyer would have to pay the maintenance and closing fees, how would I go about transferring the deed?

[elgato15 Junior Member Find all posts View Profile Close elgato15]

You would think that they would want to accept that deal since they can get that a good amount just from renting the weeks.

[Irishlass Junior Member Find all posts View Profile Close Irishlass]

Also own a week at GBC and have received maintenance bill. Also noticed no income figures in the projection statement. If Cottages 9 and 10 have been sold (as seen on Internet) where has this $295,000 euro gone to? Should that not be used to some extent in updating the property? The current owners may have inherited this from Bill but that is all they seem to have inherited. If they want out, why not sell instead of saddling current owners with extravagant maintenance fees.

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

Anyone know when these two cottages were sold? Why wouldn't that money remain in the management company?

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

I don't know when the cottages were sold. Quite some time ago, after the developer died I was looking at property and found the listing. It must have been over 2 years ago. I remembered seeing it when this discussion regarding the huge fee incrrease occured. I would think that the monies from the two cottages should go to the management company, but since I do not know HOW they were deeded I can only speculate that the monies were placed elsewhere.

Let's face it, that sum would pay for all the necessary items and more.


Joy

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

Today I sent the following email to the "management" let's see if I receive an answer.

Does the following exist for the Galway Bay Owners Association? If so please provide in a timely manner.

1) Constitution or other governing instrument
2) List of officers
3) Minutes of meetings (and when and where those meeting were held and if notification was sent to owners)
4) The number of owners by status (current, delinquent)
5) Contact info for all members of the association
6) Full balance sheet (not just the projected expenses for the coming years)
7) Listing of available weeks for sale and how those units are being marketed
8) Resort management contract 45K Euros...to whom is that paid?
9) Auto expenses of 1K Euro...I was unaware the cottages had a vehicle available...to whom is that paid?

In regard to the 2013 budget, do you have the previous years actual balance sheets by line item (maybe a tax filing for the Association)? The 90K Euros...is that a one time expense (Sewer, roofing etc since you are showing the total cost as 180K Euro) or is that expected to continue as yearly expenses?

After this huge maintenance fee payment to cover these additional expenses, will the fees return to more palatable rate?

Also, an accounting of all income sources besides the M/F, such as unit sales, rentals, interest income, late fees, including what happened to the monies from the sale of the 2 units that were listed for sale through Barna Estates LTD (and shown as sold).

I am unable to make a determination if I want return the unit to the Association, or pay the fees until these questions are addressed. To be frank, your accounting does not add up. Without a balance sheet, and documentation this huge increase in fees appears to be a tactic to have owners default and the Association take possession of the defaulted units.

Best regards,

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Good move, Joy. That is exactly what is needed.

Another European group that may be helpful is TATOC (The Asssociation of Timeshare Owners Committees) at www.tatoc.co.uk I don't know how much they might get involved, but it is worth a shot.

I think more exposure of this issue of the European board www.timesharetalk.co.uk might also bring out some insight into Irish law that might be helpful. I know that there are some active or retired lawyers who post there. The important thing here is to get all the solid info you can as to your options.

[senorSamba Junior Member Find all posts View Profile Close senorSamba]

I sent a similar letter over a week ago and have yet to receive a response.

I sent a followup this AM.

I wonder if it's time to contact the State Attorney in MA?

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

I received a long reply from the current owners that has helped me to understand what has really happened over the years. I truly believe that the heirs are doing their best and more to try to make a go of this.

The funds received from the sale of the two cottages went to the benefit of the other cottages and if not for the failure of the septic and repairs due to age the fees would likely be more in line with what we have paid in the past.

It seems Kevin is working his hardest to right as many of the short falls as possible and is thinking that once this large bill is paid and this budget funded and the sewer connected and the structures re-roofed (is that a word?) then the worse will be over.

I am willing to pay and see how this goes. I have stayed at the cottages once several years ago and found them comfy, but I could see then that work needed to be done and that was at least 5 years ago.

Other owners, please add your thoughts.

Joy

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Hopefully, this is accurate. If so, the big failure here is communication. Why did they not lay that out in detail in their first letter? I was on a timeshare board that had a special assessment in the first few months I was on it. We laid it out in detail for the members, with the reasons for it. In our governing instruments, we had to get a majority vote from the membership, and we ended up with a unanimous vote. It is all about communication. Also, much of this should have been set out as a special assessment, not rolled into the maintenance fees. As a special assessement, members can see that it is a one-off charge for a special emergency purpose. As a maintenance fee increase, they fear it will be permanent.

Even if the ifnances are squeakly clean, that is an area there needs to be complete communication with members, and every year, not just when there is an emergency.

Then there is governance. Even if the management company is the second coming of Mother Theresa, there simply needs to be a homeowner committee with its hand in the process. That is democracy, but it is also good timeshare management. An elected board putting its stamp of approval on these emergency expenses would go a long way to increasing the comfort level of members.

I received a long reply from the current owners that has helped me to understand what has really happened over the years. I truly believe that the heirs are doing their best and more to try to make a go of this.

The funds received from the sale of the two cottages went to the benefit of the other cottages and if not for the failure of the septic and repairs due to age the fees would likely be more in line with what we have paid in the past.

It seems Kevin is working his hardest to right as many of the short falls as possible and is thinking that once this large bill is paid and this budget funded and the sewer connected and the structures re-roofed (is that a word?) then the worse will be over.

I am willing to pay and see how this goes. I have stayed at the cottages once several years ago and found them comfy, but I could see then that work needed to be done and that was at least 5 years ago.

Other owners, please add your thoughts.

Joy