Condominium Fees: Everything You Need to Know to Better Manage Them
Our real estate agency in Paris's 16th arrondissement explains clearly how they are calculated, distributed, and paid, as well as possible solutions in the event of a dispute.
What exactly do condominium fees cover?
Condominium fees consist of all expenses necessary for the maintenance, operation, and management of a multi-unit building. They are generally divided into two main categories:
- General expenses: These cover the maintenance of common areas (lobby, hallways, stairwells, roof, exterior walls, and green spaces) as well as day-to-day management costs (property manager’s fees, building insurance, and administrative expenses);
- Special charges: These are related to the use of certain common facilities, such as the elevator, central heating, air conditioning, security services, and parking.
How are condominium fees calculated?
The calculation of maintenance fees is based on the proposed budget approved at the general meeting of co-owners. This budget is prepared by the property manager based on the estimated needs for the coming year.
All expenses are budgeted in advance: maintenance, utility bills, routine repairs, professional fees, etc. The co-owners then pay their share based on their ownership interest in the condominium.
The projected budget is adjusted each year, and the final accounts are settled to reconcile the balance: if the provisions paid exceeded actual expenses, the co-owner receives a refund; otherwise, the co-owner must pay the difference.
How are the expenses divided among the co-owners?
The allocation of expenses is based on co-ownership shares—expressed as tenths or thousandths—assigned to each unit (apartment, storage unit, parking space) according to its size, location, and function within the building.
- General expenses are allocated in proportion to the value of the lots;
- Special charges are based on the principle of “use”: for example, a co-owner on the ground floor does not pay for the elevator, or pays much less than an owner on the top floor.
This system ensures equitable distribution, although it is sometimes a source of debate in general meeting.
Who is responsible for paying the condominium fees?
The owner of the unit is legally required to pay the condominium fees. However, in the case of a rented property, the owner may recover a portion of the rental expenses known as “recoverable” from the tenant (for example: cold water, central heating, elevator, maintenance of common areas).
Good to know: Non-recoverable expenses, such as property manager fees or structural work, remain the sole responsibility of the landlord.
