All you need to know about condominium charges

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First of all, you need to know that you can calculate your condominium charges, or at least estimate them, if you know the provisional budget voted at the annual general meeting and the tantièmes, which define your share of the contribution. The formula is as follows

Condominium fees for lot X = (Number of units in lot X / total number of units) x Estimated budget

Having said that, we'll remind you of their definition before going into detail about calculating tantièmes and then allocating and optimizing condominium charges.

What are condominium charges?

Condominium charges are expenses incurred to ensure the proper operation of the building. They are divided between co-owners on the basis of the proportion of common areas (tantièmes or thousandths) allocated to each lot.

There are two main types of charges: general charges and special charges.

General charges

These cover the maintenance, upkeep and administration of the common areas (entrance hall, elevator, roof, corridors, green spaces, janitor, condominium manager, etc.). They are apportioned in proportion to the relative value of each lot, expressed in tantièmes.

Special charges

These relate to communal services and equipment, such as the elevator, collective heating or cold water. They are apportioned according to the use that each co-owner may make of them.

How are co-ownership tantièmes determined?

The distribution of general charges is based on the proportion of common areas allocated to each lot in the condominium by-laws. These tantièmes are set according to objective criteria, including :

• Lot surface area,
• Location within the building (first floor, top floor, exposure, view, etc.),
• Use (residential, commercial, office).

An amendment to the condominium by-laws may be necessary in the event of the transformation of a lot (e.g.: division or grouping of lots), subject to a unanimous vote at the general meeting.

How are special charges allocated?

Special charges are calculated on the basis of the presumed use of community facilities by each lot. For example:

• Elevator charges are apportioned according to the floor served. A co-owner on the first floor will pay less than someone on the top floor.
• Collective heating costs may be apportioned according to tantièmes or individual consumption measured by meters.
• Cold water, if collective, can be billed according to the tantième or individual water meter readings.

Who decides how condominium charges are apportioned?

The condominium manager is responsible for managing and presenting the condominium's accounts to the co-owners at the annual general meeting. Expenses are set out in the provisional budget, which must be approved by a simple majority of co-owners.

Work and exceptional expenses

Work not provided for in the provisional budget (e.g. facade restoration, roof repairs) is subject to a specific vote at the general meeting, in accordance with the majority rules set out in article 25 or 26 of the law of July 10, 1965.

How can you optimize your condominium expenses?

There are a number of ways to reduce charges:

• Compare service provider contracts (maintenance, insurance, elevator, collective heating) to negotiate rates.
• Optimize energy consumption: switch to LED lighting, insulate common areas, regulate collective heating.
• Carry out a cost audit to identify superfluous items of expenditure.
• Pool certain services between neighboring condominiums (e.g. caretaking, green spaces).

Find out more about condominium charges with Winter

The calculation of condominium charges is based on rules defined by the condominium regulations and the law of July 10, 1965. Good management and vigilance with regard to expenses help optimize these charges and ensure the smooth running of the co-ownership. As an owner, it's essential to understand these mechanisms to anticipate costs and play an active part in decisions taken at the general meeting.

Do you have a dispute with your co-ownership regulations, or would you like to find out more about them with a view to buying a property? Contact our real estate agency in Nice ! Winter Immobilier is your Côte d'Azur real estate specialist since 1958!