Dear Owner,
We have now had the opportunity of meeting with many Building Presidents to discuss the way forward for HR. We are now able to share the information with you as you will get the opportunity to vote on whether you want your Building to also have your admin service provided by our inhouse team, or whether you want to pay for an external company to do it. All the BP’s, we have spoken to, with one exception who wanted a bit more information, have agreed that it is the best way to go.
The following are the main benefits in moving to Self-administration.
1. To improve the service
a. By having a dedicated team working solely for HR the service will inevitably be quicker and more efficient.
b. They will be able to get more involved in managing major projects which will mean less work for the Building President and the Board.
c. Personal involvement in dealing with building queries.
e. A Dedicated Resort Manager.
2. Legal Service
After interviewing several legal companies we have appointed Imont lawyers in San Javier as our legal advisors on an annual retainer basis to cover any legal advice we need clarification on. This includes any building problems but not personal ones. It also includes auditing our accounts and dealing with payroll for our employees. The fee is 23,000€.
3. Costs
a. Resortalia’s current administration costs are 210.112, 67 €. Their proposal for another 3 years contract shows an increase of 80,362.62 to 292,475.29 in the first year rising to 306,047 in year 3. This included amounts for a part time Resort Manager, handling your insurance claims in addition to what they have been doing for the last 12 years.
b. Self-administration costs for 2021 will be 149.405, 26 €, which shows a saving of 60.707, 41 € on Resortalia current admin cost and 141,070.03 for their proposal in 2021. This shows a saving of 75,68 € per apartment.
c. Your administration fees are split into two payments, one payment to your building’s budget and one to the General Community budget. This is not the most efficient way of doing it so to reduce our admin team’s workload in 2021 it will be one payment into the General Community budget where almost all the work and expenditure take place. It will save about 5 hours work a month.
4. Insurance
As a result of Resortalia telling us they were no longer able to provide the insurance service claims procedure they had been giving us for free, they would have to charge for it in future. To do this they quoted a minimum of 30,250€ up to a maximum of 48,000 depending on which Insurance company we appointed. We will be using a different broker who will do this without charge. We have also found that our insurance cover is nowhere near enough and it would only have covered 16% of the resort (12 buildings). As we are in an earthquake area, we feel we need to provide full cover in the event of losing all our buildings.
Your Building President is supporting self-administration so please support him/her by either attending your building’s EGM in person at El Casón or completing a proxy form nominating either Gordon Hutchinson or Pepa Perez to vote on your behalf.
Thank you,