Dear OH5 Owners
We take this opportunity to inform you that Demorilo will cease all services at the end of the current contract (end of September 2013). According to Demorilo’s own accounts the OH5 debt reached just over 2,900 euro and they feel that it’s unsustainable to manage the complex, as so many owners were not paying.
While some owners in our complex have taken issue with Demorilo in the past, they remain popular locally and manage 11 complexes. We have spoken to the Committees of many and they are satisfied. The facts of the matter means that in the current economic crisis with Demorilo out of the picture, it will be very hard to find another professional management company willing to take on the complex and even individuals will show caution. Moreover, individuals either demand money up front or paying exactly on time, which is something we have not been able to do until now due to the volume of non-payers.
As the debt is mounting we are forced to start limiting services. Demorilo have been financing our complex for the past few months, so to avoid more mounting debt, we negotiated cheaper prices for August / September 2013 at 800+ euro per month (including sewage, pool maintenance, gardening, basic admin and cleaning) instead of 1480+. Considering that the cost of the sewage disposal is now 400 euro per month alone due to the forced new system involving an increased frequency of disposing sewage we had to adopt, which includes stamps from Nicosia, the rest of the services are in reality being subsidized. The temporary fee will however mean we will receive limited and reduced services.
As a Committee, we gave strong warnings to all owners on the Blog and by email in July. Moreover, a number of owners were contacted individually and sadly the response was not as good as we hoped for regarding payments. We did however get a positive response from the usual core of responsible paying owners, but this was unfortunately not enough to pay the debts. Apart from a list of regular persistent non-payers, which has always caused the maintenance challenges (Quality, Palm View, Absolute all in debt), a new set of owners started not to pay (some are even resident in the complex) and this has of course caused the extra damage, which may affect all of us. This lack of funds in turn also meant that we could not start the sewage repairs that were voted on at the AGM in May 2013.
At this juncture, all Committee members will discuss this new development as a matter of urgency. Owners should be aware that services might well be affected as a result. There are only limited funds to work with at present, however all incoming funds will be used to cater for critical services such as the sewage (now more expensive than before) and the Swimming Pool. The last Electricity Bill was paid by Grant Holmes and we still have a few weeks before the next one.
We welcome the individual input from fully paid owners that have supported the OH5 community until now, as we are in a critical situation and they have the right to influence what happens from here on.
We advise all owners not to pay any money into the Demorilo Account any more.
Currently we have no funds and debts to Demorilo (mentioned above), Insurance and water Irrigation. Utility bills will come in soon and we risk even Demorilo stopping services sooner if we cannot pay at least something towards the debt.
Despite what may have passed, this is an opportunity to clear the decks, let bygones be bygones and come together as a community of caring owners. All owners with outstanding debts now have an opportunity to show their good will to the community by depositing into the Committee Account (details attached) by 1st of September 2013. As bank transfers take a few days, simply send details of your deposit to this email address. For owners with large debts a minimum deposit of 500 euro is expected, thereafter we can create a payment plan. Owners with lower outstanding payments, we just ask to bring your account up to date until the end of August. If you are experiencing financial difficulty please make contact with us and we will arrange something, however in all cases we need to see a token of good will.
Owners that do not show a token good will and have outstanding debts, will be placed on a list of non-payers, then contacted by someone from the Committee or a Credit Agency. The list will be shared with all fully paid owners owners, as everyone paying regularly has the right to know who is causing such harm to our complex.
In closing, please act quickly, as this is a matter of urgency.
OH5 Committee
