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Condominium Administrator Costs: How to Read Quotes and Results?

Condominium Administrator Costs: How to Read Quotes and Results? - Each year the condominium administrator must draw up the final and budget budget to be approved in the assembly for the distribution of expenses.

Condominium Administrator Costs How to Read Quotes and Results

When you own a house in a condominium you should always relate to the other condos in order to decide what are the most appropriate choices for the administration of the building and the common spaces.

All condominiums, in fact, are required to manage the common property and to deliberate the expenses to be incurred, related to routine maintenance, such as:
  • cleaning of stairs and passing environments (entrance hall, courtyard, landings, etc.)
  • payment of condominium utility bills (water, light, autoclave)
and extraordinary maintenance, such as:
  • Renovations
  • makeover of facades
  • energy efficiency interventions
For this very reason, the figure of the condominium administrator, who is responsible for condominium management and any other duties relating to the convocation of the assembly and the execution of the decisions decided there, is envisaged.

Among the most important tasks of the administrator is the drafting of budgets relating to the preventive and budget costs to be approved each year in the assembly.

These documents include the various expense items that affect condominium living and the criteria for cost-sharing between condominiums.

What is the budget drawn up by the condominium administrator

In the budget, in general, the various items of expenditure are reported, usually divided into ordinary expenses and extraordinary expenses.

The budget, in particular, shows the indication of the preventive costs that are expected and it is assumed that they will be addressed during the year ahead.

According to this forecast, a special breakdown of the costs of the various owners is drawn up, with reference to the values of each apartment found in the thousandth tables.

In the budget, for example, the costs related to ordinary expenses to be incurred, such as the bills of condominium utilities necessary for the lighting of the common spaces or the supply of water to the various floors of the building, will be provided and counted.

In this case, the expense forecast will be roughly in line with the costs that will actually be incurred, since the condominium administrator can rely on the bills received already the previous year. The same applies to the costs of the routine maintenance of the elevator, where present, or the costs to be recognized to the cleaning company that deals with the sanitation of stairs and common spaces.

More approximate, inevitably, will be the forecast for any extraordinary expenses to be incurred within the year.
For example, the administrator may suggest that the facades of the apartment building should be redone; However, while waiting to address the matter in detail at a later meeting, complete with analysis of company estimates, it will only be possible, in the budget, to assume a maximum figure that will be spent by each condominium.

In order to ensure that each condo is spent only as much as it is, at the end of each financial year, expenditure is adjusted, in the final budget, on the basis of the sums actually paid during the year.

The expenditure variances are thus checked as follows: if the sums paid by a condo as a result of the approval of the budget are higher than those found in the final budget, he will be entitled to the reimbursement of what is paid in excess; on the other hand, if you have spent more than budgeted, each condo will have to supplement what you have already paid previously.

How to read the administrator's final report

The final budget consists basically of two parts:
  • one relating to the situation of the condominium fund and therefore relating to the sums that were actually paid or expenses during the year
  • another related to the balance sheet, i.e. the existence of any debts and debts that affect the condominium
For example, if a single condomino is bad for paying what is owed by him, the sums he has yet to pay will be counted in the prospectus for the balance sheet and not in the cash flow worksheet.

The administrator is also required to attach an explanatory note to the statement, in order to make clear and complete the information to be provided to the condominiums.

The drafting of these documents is provided directly by law: in fact, art. 1130-bis of the Civil Code stipulates that, in addition to the accounting register and the financial summary, it is also necessary to draw up an explanatory summary containing, among other things, the indication of ongoing reports and outstanding issues.

It should also be remembered that each condominium has the right to view and extract copies, at any time, of the supporting documents of expenditure. The latter, however, must be kept for ten years.

Condominium bonds and the purchase of a house

When buying a house in a condominium building it is important to learn about the latest approved budgets, to know if the seller has any slope towards the condo.

It should be known, in fact, that the buyer, by law, is obliged to solidly with the seller for the contributions due for the current year and for the previous year.

This means that the administrator could demand from the buyer the payment of past debts attributable to those who sold him the apartment.

Of course, if these are expenses approved before the sale, the buyer will have the right to have the seller reimburse the price of the condo, but it is still a problematic situation that would be preferable to avoid (the aspects just examined are reflected in the civil code, Article 63 of the implementation provisions, commi 4 and 5).

Buying a house with online auctions

If you are thinking of buying a house, then, also pay attention to the aspects examined above.

And if you are looking for a way to save on the purchase price of your new home, discover the offers you find on Real Estate Discount, the reliable and secure online auction portal, where you can find the most affordable bargains, coming from court procedures all over Italy.

With Real Estate Discount you can consult from the comfort of your PC or smartphone the description, photographs and all the historical and land records related to each property, to choose the right house for you.

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