Calculating condominium fees is a fundamental aspect of condominium management: this operation determines the division of common expenses among the owners of the units. Understanding how condominium fees are calculated, with practical examples and clarifications on the regulations, can avoid misunderstandings and disputes between condominium owners. In this article, we will analyze the calculation of condominium fees in detail, illustrating the basic principles, how condominium fees are divided, and the circumstances in which the table of fees can be modified.
What are condominium thousandths?
Condominium shares (thousandths) are a unit of measurement representing each condominium owner’s share of the entire building. A condominium, considered a single entity, is divided into 1,000 units, and each owner holds a certain percentage of these units, expressed in thousandths.
The allocation of thousandths is determined by taking into account various parameters related to each property unit, such as surface area, floor, exposure, and other factors that can influence its value. The thousandths are then used to apportion condominium fees: each owner contributes based on their share of ownership, expressed in thousandths.
The thousandths table
The calculation of condominium thousandths is summarized in a table called the thousandths table, which indicates the percentage of each real estate unit’s share of the entire building. The table is usually prepared by a specialist (such as a surveyor or engineer) and approved by the condominium assembly.
How are condominium fees calculated?
The calculation is based on various criteria, designed to reflect as closely as possible the true value of each unit compared to the entire building. There is no single formula applicable to all condominiums, as the calculation depends on multiple factors related to the specific characteristics of the building and the individual properties. Generally, the thousandths are calculated based on the following parameters: unit surface area; floor height; exposure and orientation; technical characteristics; and use of common areas.
One of the main factors in calculating the thousandths, in any case, is the floor area of the apartment or unit. The larger the surface area, the higher the property’s value in terms of thousandths. The floor on which the unit is located also influences the calculation of the thousandths: apartments on higher floors tend to have a higher value, especially if the building has an elevator.
A property with good sunlight exposure or a panoramic view may see an increase in the thousandths, while other factors, such as the presence of balconies, terraces, or private gardens, as well as the unit’s thermal and acoustic insulation, can influence the calculation of the thousandths.
Finally, in some cases, the division of the thousandths may be affected by the different use of common areas. For example, an underground garage or a cellar may have a different impact on the thousandths than the actual apartment.
Example of calculation of condominium thousandths
To better understand how the thousandths calculation works, let’s look at a practical example, imagining a condominium with four apartments:
- Apartment A: 120 sq m, located on the ground floor
- Apartment B: 100 sq m, located on the first floor
- Apartment C: 90 sq m, located on the second floor
- Apartment D: 80 sq m, located on the third floor
To simplify the calculation, let’s assume that the only factor influencing the thousandths is the unit’s surface area. We then proceed by calculating the relative value of each apartment compared to the total surface area of the building.
Total surface area of the building = 120 + 100 + 90 + 80 = 390 sq m
Now let’s determine the percentage of each apartment compared to the total:
Apartment A: (120/390) x 1,000 = 307.69 thousandths
Apartment B: (100/390) x 1,000 = 256.41 thousandths
Apartment C: (90/390) x 1,000 = 230.77 thousandths
Apartment D: (80/390) x 1,000 = 205.13 thousandths
In this example, the division of the thousandths was based on the apartment’s surface area. However, in reality, as already mentioned, other factors (exposure, floor, etc.) are also considered, making the calculation more complex.
Calculating condominium fees based on thousandths
Calculating condominium expenses based on the thousandths of the property is governed by Article 1123 of the Civil Code, which states: “[…] The expenses necessary for the maintenance and enjoyment of the common areas of the building, for the provision of services in the common interest, and for innovations approved by the majority are borne by the condominium owners in proportion to the value of each property.”
General expenses concern the ordinary management and maintenance of common areas, such as the garden, elevator, building facade, stairs, and roof. They are distributed based on the thousandths of the property, i.e., in proportion to the value of the real estate units compared to the entire building. Special expenses, on the other hand, concern goods and services that only a portion of the condominium owners benefit from (for example, elevator costs will be shared only among the owners of apartments on the upper floors).
Example of distribution of condominium expenses
Suppose the condominium in the previous example incurs an expense of €10,000 for the maintenance of the shared garden. Since this is a general expense, it will be divided based on the thousandths:
Apartment A: (307.69/1,000) x 10,000 = €3,076.90
Apartment B: (256.41/1,000) x 10,000 = €2,564.10
Apartment C: (230.77/1,000) x 10,000 = €2,307.70
Apartment D: (205.13/1,000) x 10,000 = €2,051.30
In this way, the condominium expenses are divided proportionally to the thousandths share of each apartment.
Is it possible to modify condominium thousandths?
Changing the condominium thousandths is possible, but only in certain specific cases, especially when situations arise where the thousandths table no longer accurately reflects reality. In any case, changing the thousandths requires unanimous approval by the condominium assembly, as established by Article 69 of the implementing provisions of the Civil Code.
There are two specific cases in which the thousandths can be changed without unanimity, but with a qualified majority: if an error is found in the initial calculation of the thousandths table; or if one or more real estate units undergo significant modifications (for example, the expansion of an apartment or the creation of new units).