Odalys - Avoid like the plague

hi, 

Its hard to give definitive advice because every development is different. In our case odalys offered a 25% reduction in rent to renew the lease. they didnt get enough peopleto accept the offer so they ended the lease. they gave the usual notice so on 30th of september they will pull out. As you can imagine this is going to cause chaos...no reception, no-one to mind the swimming pool, no TV, no Internet etc etc.. So we are all trying to figure out what to do.

I went to the co-prop meeting last week to try and understand what is going on. the co-prop uses SGIT Gestion to run it. There was an Odalys rep present. He said that Odalys was for sale for some time now.

What i hadn't realised is that the co-prop has to appoint a management company to run the complex (the syndic) and that the co-prop can replace the syndic with a majority vote.

So at the meeting SGIT got the boot and a new syndic will be in place from September. They will then do the basics you need after Odalys leave, a letterbox, indivudal water meters, telephone and internet etc. the syndic charges around 10K PA for 70 apartments to provide the basic service/ the runing costs for our 70 apartments is around 110K. So about 1.5K each

As owners we are all looking to see who can rent our apartments and whether we have to repay VAT. At the moment there are 2 or 3 local agencies who will rent the apartments for 20% - 25% of the rent. The current advice we are getting says that as long as we continue to rent out and provide 3 out of the 4 services we wont have to repay the VAT break we got at the start. ( we are 9 years in so 55% due back)

So we will wait and see what happens in September, try and get someone to rent the apartment and hope for the best next year.

rgds

Woody

Hi

Things have moved on a fair bit

The main thing I learned in the last year was the difference between the "syndic" which manage the complex itself and the management company (Odalys) 

You can evict the syndic fairly easily at the AGM of the co-prop..Most towns have companies who will run a block of apartments. In our case we found a local one who will do it

cheaper than the SGIG Gestion puppets that Odalys have put in place who while legally compliant were always acting on Odalys's behalf..

Co-props are extremely well legislated for in France...all well defined etc

The management company Odalys  can I think be replaced by just about any company who can offer 3 of the 4 services needed to keep the VAt....reception, breakfast, cleaning etc

We have gone with a local company and will see how we get on. They will rent our apartment in return for 20% - 25% of the rent they can get

The risk is whether they manage to rent it or not...and clearly they will never of the marketing spend of Odalys... for me if I can get it rented for 4 - 6 weeks to pay the co-prop fees that will do but if you have a mortgage to pay i cant see it being enough unless your apartment is in a very desirable location

Finally when you get rid of Odalys there are lots of practical issues and costs to address... electricity, water, insurance, etc whih you suddenly have to worry about.. the syndic will look after the pool and the grounds but you have to look after your apartment....upgrade furniture etc

All will become a lot clearer on Oct 1st when we get the keys back from Odalys

Woody

Hi

from what I can see Odalys pay whoever they have to pay first and it's all about cash flow. 

if you send a CDP via a bailiff they will almost certainly pay you very quickly.

i believe that Sheamus who runs this site offers a service for this.

There is an interim step where you send them a registered letter.  This may or may not work. I got paid

after I sent one but I couldn't be sure this was the reason .

I would always be concerned that they will go into some sort of liquidation to escape their debts. They must be very well connected

with powerful people in France to get away with this.

D