There are three common ways a committee will calculate each unit’s Communal Fees: But only one way is the legally accepted way.
How to calculate each apartments communal fees?
Communal buildings cost money to operate. Whether it’s a simple apartment block with a single stairwell, or a 5* resort complex with reception, pool, restaurant and spa. A committee is elected to organize, administer, manage and maintain these ‘communal areas’. One of its duties is to set a budget to cover these expenses and then calculate each unit’s contribution amount.
There are three common ways a committee will calculate each unit’s ‘Communal Fee’:
1. Flat rate: Every unit pays the same amount regardless of size or number of bedrooms.
2. By number of bedrooms: A 1 bed would pay XX, a 2 bed would pay XY etc.
3. By the m2 size of each unit: Each unit pays a different amount based on size.
However, under the Communal Property Law (The Regulations), there is only one legally accepted way of allocating communal fees and that is option 3 above - by the m2 size of each unit. Each unit pays a different amount based on size.
To do this calculation you need each unit’s size, which is measured in meters squared (m2), and the annual budget that has been set by the committee.
Step 1) Add every unit’s meters squared (m2) together to find the [TOTAL m2] for the entire building or resort.
Step 2) Take the [Annual Budget Total] divide it by the [TOTAL m2] and that will give you the [Annual M2 Price].
Step 3) Take the [Annual M2 Price] and multiply it by each unit’s individual m2 size and this will give you each unit [Annual Contribution Amount].
If you do not have the m2 for each unit, you can request a document from the land registry detailing each unit’s owner, official value and size. You can also request this from your developer, or find it in the sales documentation, but be aware these are not always accurate and the land registry records are considered the primary records.
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