Luxembourgers on the lookout to buy their own property should do their homework when it comes to the role of property management companies. That’s according to two apartment owners who spoke to RTL Today about their concerns with delays in getting essential repairs and maintenance carried out on their building, advising potential buyers to do their due diligence before taking the plunge.
Experiences with property managers, also known as syndics, can range from extremely positive to mild inconvenience to downright frustration, according to discussions on Luxembourg expat forums. Common complaints often include a lack of communication, repairs not being carried out in a timely manner, and whether the service offered represents value for money.
Andrea*, an expat who has been living in the Grand Duchy for the past six years, said she has not had a positive experience with the property management company at her apartment complex.
After buying her one-bedroom home last year, located 30 minutes from Luxembourg City, she said she had a rude awakening on realising the struggle she faced in getting repairs and maintenance addressed and completed to a satisfactory standard.
Calling it “a hopeless situation”, she describes the level of responsiveness and service as “mediocre at best.”
Earlier this year, maintenance needed on the building’s lift, which had gone “on the blink”, was not addressed in a prompt manner, leaving residents without the essential service, she said.
Living on the second floor, Andrea was particularly worried given the fact that she has an ankle complaint and surgery is expected down the line. She requires a “reliable, working lift” or else faces being immobilised, she says.
Another issue was an electric garage door connected to the apartment block that was not closing properly raising a security concern for residents. Also a leak on Andrea’s balcony that was causing damage to a neighbouring unit was not addressed promptly, she adds.
A log of her correspondence with the property manager and contractor in relation to the balcony problem, which she shared with RTL Today, shows a timespan of six months since the complaint was raised, with no resolution.
A further concern coming into the winter is the heating system, which is not functioning correctly. Again, Andrea states, there has been an unsatisfactory response from the building manager.
The frustration continues as even once carried out some repairs have ended up needing to be redone, hitting the co-owners in the pocket. “There are no service level agreements (SLAs) and we are repaying to get repairs done after they are not carried out correctly the first time.”
Another resident at the apartment complex expressed his dismay at the lack of engagement from the syndic. Tom*, who is also an expat and in his 40s, bought his apartment in 2013. He said the incumbent syndic is the third that has been in place since he moved in.
He describes how the syndic had been mandated to install new railings on some of the balconies of the building.
Tom provided email correspondence, showing where the issue was raised and subsequent requests for updates. “They showed no desire to find a company to do this work, even though the balconies were not compliant, so I found a company myself and followed up with them.”
He continues: “We had several garage door problems, a company came to carry out the repairs and it seems that these repairs did not last. The syndic did not take the trouble to question about the warranty or ‘challenge’ this company and did not offer other companies or a solution to this problem.”
Andrea, for her part, feels “as if apartment owners are second class property owners, not rich enough to buy standalone homes.” She says she is always in fear of what’s going to break next, anticipating the “hassle and anxiety” of the process to get things fixed.
“You have to manage everything as an owner. We’re not getting our money’s worth from the syndic. They are inundated with clients, inundated with bureaucracy. They just don’t have the time to respond. There needs to be a limit on the number of properties they manage.
This is a Luxembourg-wide problem. We need to give a voice to the middle-of-the-road homeowners. People don’t speak up about it, they don’t do anything about it. They just accept the status quo.”
Despite living in an ideal and peaceful countryside location, Andrea says on reflection she would have thought more carefully about becoming a co-owner in an apartment complex.
“If I had only known in advance the issues I’d run into. Looking back, I wouldn’t have bought here. In hindsight I bought in a hot market. There was competition to find a place and I didn’t think to ask about the syndic situation. It’s been a big learning experience.”
Andrea has this advice for people looking to purchase as a co-owner in an apartment building: “Buyers need to ask potential sellers ‘what is your relationship with the syndic?’ This is very important. Also factor in the cost of the syndic – be clear on the monthly fees.”
Tom, drawing from his own experience, offers these words for those considering buying: “I’d request the cost split and budget use of the common areas because we usually receive that info after buying an apartment. I’d request the last two to three ‘rapports de gestion’ (‘management reports’). I’d ask for the contract between the ‘copropriété’ (‘co-owner’) and the syndic and I’d try to talk to other co-owners in order to have their feelings on the matter,” he adds.
According to the Real Estate Chamber, which represents the professions of syndics as well as of real estate agents and promoters, its disciplinary and mediation committee can intervene to resolve any dispute between a Real Estate Chamber member and a client.
This mediator, it says, acts as a trusted third party, ruling in a completely impartial manner, which constitutes an additional guarantee for the client. In the event of proven misconduct by the professional, the committee may take sanctions against them, up to and including exclusion from the Real Estate Chamber.
In the event of serious misconduct, the offence can be brought to the attention of the Ministry for Small and Medium-Sized Enterprises, which can also sanction the unscrupulous professional, even withdrawing their authorisation to carry out their activity.
An advisor at the Luxembourg Confederation emphasised that any consumer observing a breach of the obligations of a real estate professional (trustee in this case) can file a complaint accompanied by supporting evidence to the disciplinary and mediation commission of the Real Estate Chamber.
The syndic responsible for Andrea and Tom’s building was contacted, but declined to comment.
*Names have been changed.
