Rental expenses: What do they include, and who is responsible for paying them?
With our real estate agency in Paris's 16th arrondissement, CENTURY 21 Auteuil Immobilier: Find out everything you need to know about what they are, how they're calculated, and the division of responsibilities between landlord and tenant.
What are rental charges?
Rental expenses include all costs associated with the use and routine maintenance of the dwelling. They are initially paid by the landlord, who is then reimbursed by the tenant. This allocation is based on the list set forth in the Decree No. 87-713 of August 26, 1987.
The reimbursement mechanism is designed to cover the ongoing expenses necessary for the proper maintenance of the dwelling and common areas. This system ensures that costs are fairly shared between the property owner and the occupant, with each party covering the expenses for which they are responsible.
What expenses can a landlord recover from a tenant?
The landlord may recover from the tenant various types of expenses related to the tenant’s occupancy of the dwelling. These are primarily costs associated with services from which the tenant directly benefits.
These recoverable expenses include costs associated with essential services such as water, the elevator, and central heating. Expenses for maintenance and minor repairs to common areas are also included, provided they do not result from construction defects or structural flaws in the building.
The tenant must also contribute to communal services such as household waste collection and sanitation. Specifically, these charges include the maintenance of elevators and freight elevators, the supply of hot and cold water, central heating for private and common areas, as well as the maintenance of interior common areas and green spaces. The salaries of the building staff or the superintendent (in part) are also included in these recoverable charges.
What expenses are the owner still responsible for?
Certain expenses are the sole responsibility of the owner. These expenses relate to major maintenance work and improvements to the building. Here are a few examples:
- Major repairs: replacing the boiler or windows, or renovating common areas;
- Improvement projects: such as creating green spaces or renovating building facades;
- Management expenses: including property tax and fees for condominium management.
The owner must also cover the costs of installing and replacing common-area equipment, as well as repairs resulting from construction defects or the deterioration of the equipment.
How are rental charges calculated?
The calculation of rental charges is based on the most recent statement of condominium fees. This document is provided to the co-owners each year following thegeneral meeting. This breakdown allows you to determine your individual share of the expenses, based on your housing unit and the various shared services.
Recoupable expenses average between 70% and 80% of total expenses. If the property manager includes a “recoverable expenses” column, you’ll find the annual amount listed there. Otherwise, you’ll need to calculate it based on the allocation of expenses according to co-ownership shares.
