Work with a Previously Financially Distressed OMC, Dublin 8

A significant problem that can emerge if OMC finances are not well managed is that the finances deteriorate. An OMC can run out of cash and may not be able to pay creditors or undertake urgent works (e.g. replace a lift motor). An OMC that is insolvent or ‘struck off’ has serious implications for the sale of properties.

RFPM has turned a number of developments around financially in recent years. This takes focused work over several years. It incorporates tight cost management, working with creditors, rigorous collection of service charges and possibly service charge increases. A key pre-condition is buy-in from the owner-directors for the measures required.

Kilmainham Bank, a development of 103 properties on the banks of the Camac in Dublin 8, is an example of a very successful turnaround. The development moved from being technically insolvent with debts of 60,000 euro to having positive cash reserves of the same amount just three years later (while undertaking several investment projects in the meantime). The development now has solid healthy finances and can pay for site upgrades on an annual basis as they are required.

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