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Accounting

Financial statements, budgets, cost allocation, the condominium bank account and arrears recovery. Practical guides to keep transparent, compliant accounts, from recording transactions to the summary management note.

37 articles

Condominium expenses between tenant and owner: the split

Condominium expenses are split between tenant and owner along the ordinary versus extraordinary line. Here is who pays what, from the lift to heating, and what the tenancy law says.

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Legal expenses in an Italian condominium: how they are split

When a condominium sues or is sued, legal costs generally follow the ordinary allocation rules, except for the specific protection granted to an owner who dissociates from the litigation. Here is how the split actually works.

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How to Draft Millesimal Tables for an Italian Condominio

Drafting the millesimal tables of an Italian condominio follows precise technical criteria, from measuring surface area to applying corrective coefficients. Here is who prepares them, how they are approved, and why they become part of the bylaw.

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The Italian condominium financial statement: what it is and how to prepare it

The rendiconto condominiale is the yearly financial statement an administrator presents to the owners' meeting to account for the management. Here is what it contains, how it is structured and what article 1130 bis of the Italian Civil Code requires.

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Repairing the Shared Roof Terrace in an Italian Condominium

When the roof terrace, or lastrico solare, belongs to all unit owners, repair costs follow different rules than when it is reserved for the exclusive use of just one owner. Here is how the cost split works and where the distinction between the two situations lies.

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Special Fund for Major Works: When It Is Mandatory

The condominium special fund for major works is mandatory for significant extraordinary maintenance projects. Here is when the property manager must set it up and how to manage installments linked to progress reports.

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Selling a Condominio Unit: The Certificate Clearing Condominium Fees

When selling a unit in an Italian condominio, the law requires the administrator to issue a certificate on outstanding fees that protects both buyer and notary. Here is how this clearance works, the limits of joint liability, and the timing to respect.

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Cash fund and special fund in a condominium: what they are for

The condominium cash fund covers the ordinary running expenses, while the special fund finances the extraordinary works resolved by the meeting. Here is the difference, how they are set up and the rules of article 1135 of the Italian Civil Code.

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Injunction order for condominium expenses: when and how to request it

The injunction order (decreto ingiuntivo) is the tool administrators most often use to recover expenses unpaid by a defaulting owner. Here are the requirements, article 63 of the implementing provisions of the Italian Civil Code, immediate enforceability and the time limit for opposition.

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Millesimal tables: what they are, how they are calculated and when they are revised

Millesimal tables express the proportional value of each unit relative to the whole building and are used to allocate common expenses. Here is what they are, how they are calculated and when they can be revised.

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Allocating condominium expenses: criteria, tables and examples

The allocation of condominium expenses follows the criteria set by articles 1123 and following of the Italian Civil Code. Here is how millesimal tables apply, when the proportional criterion can be waived, and how stairs and lifts are shared.

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The condominium budget: a practical guide for the administrator

The condominium budget is the estimate of the year's expenses that the administrator presents to the owners' meeting. Here is what it contains, how to prepare it, the majorities needed to approve it and why it is the basis for collecting the instalments.

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How Long to Keep Financial Records for an Italian Condominium

Invoices, meeting minutes and accounting registers of an Italian condominio cannot be discarded after a few years: retaining condominium financial records follows specific timeframes, tied to the statute of limitations and the manager's duties.

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Budget and Final Statement in an Italian Condominium: How They Differ

The preliminary budget and the final statement are the two pillars of condominium bookkeeping in Italy: one looks forward, the other looks back. Here is how each is built, how to read them, and what happens when the numbers do not match.

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Garden Maintenance Costs in an Italian Condominium: Who Pays What

The shared garden of an Italian condominio is a common part like any other, with one twist: its upkeep follows its own seasonal rhythm and often coexists with areas reserved for exclusive use. Here is how the costs are allocated in practice.

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Doorman and Concierge Costs: How They Are Split in a Condominium

Concierge costs cover the doorman's salary, social contributions, and sometimes housing, and are split with specific criteria that differ from general rules. This article explains allocation criteria and how to manage the service's discontinuation.

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Splitting Elevator Costs by Floor in an Italian Condominium

Article 1124 of the Italian Civil Code sets a double criterion for elevator costs: half by ownership share and half by floor height. This article explains how it applies in practice and which costs are covered.

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Late Payment Interest for Condominium Owners in Arrears

Late payment interest on condominium fees is not automatic under Italian practice: it needs a basis in the bylaws or in an assembly resolution. This article covers when interest starts accruing, how it is calculated, and practical limits for the manager.

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Petty Cash for Small Expenses in Italian Condominiums: Management and Limits

Petty cash is the practical tool that lets an administrator cover minor, urgent expenses without triggering the full ordinary payment procedure every time. This article looks at how it is set up, what limits are advisable, and how it should be reported to stay transparent toward the assembly.

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Delinquency Reserve Fund in Italian Condominiums: What It Is and How to Set It Up

The delinquency reserve fund is a tool an Italian condominium assembly can approve to advance expenses when one or more owners fail to pay on time. This article looks at its legal nature, how it is set up, how it is allocated among compliant owners, and what happens once the delinquent owner settles the debt.

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Allocating Centralized Heating Costs and the UNI 10200 Standard

Allocating centralized heating costs in Italian condominiums now follows an actual consumption logic, set by the UNI 10200 technical standard. This article explains how the fixed and variable shares are calculated, when heat metering is mandatory, and what room the assembly still has to adapt criteria to the building's characteristics.

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Condominium Financial Statements: Cash and Accrual Basis

The condominium financial statement combines two different accounting criteria in a single document: the cash ledger that follows actual money movements and the balance sheet that captures receivables and payables. Understanding how they fit together helps managers and owners read the annual accounts correctly.

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Overhanging and recessed balconies: who pays condominium expenses

Not every balcony is treated the same way when a repair bill arrives. An overhanging balcony belongs to a single owner, while a recessed balcony can follow the logic of shared floor slabs. Here is how they differ and when the front edge and underside become a shared expense.

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Terrace at floor level in Italian condominiums: who pays for repairs

When a terrace at floor level also covers the apartments below it, repair costs are not simply charged to whoever uses it. Here is how article 1126 of the Italian Civil Code applies and how the expense is split between the exclusive user and the owners underneath.

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Roof Terrace for Exclusive Use in Italian Condominiums: Who Pays the Costs

When a rooftop terrace, or lastrico solare, is granted for the exclusive use of one unit owner, repair costs are split under Article 1126: one third to the exclusive user, two thirds to the owners below who rely on it as roof cover.

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Recovering debts from the previous management in a condominium

When an administrator takes over, they often inherit arrears that arose under the previous management. Here is who has standing to act, which documents are needed and how to recover the sums due.

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Charging personal expenses to a single condominium owner

The owners' meeting cannot load an expense onto a single owner at will: common expenses are shared by law. Here is when charging personal expenses is actually possible and when the resolution becomes void.

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Positive and negative management balance in an Italian condominium

Every financial year closes with a balance, positive or negative. Here is what the condominium management balance really expresses, how the conguaglio arises and why holding cash does not always mean holding a surplus.

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The explanatory note of the Italian condominium financial statement

The explanatory note is one of the three mandatory parts of the Italian condominium financial statement required by article 1130 bis of the Civil Code. Here is what it must contain, what it is for and why its absence makes the approving resolution voidable.

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The condominium reserve fund: what it is for and how to set it up

The condominium reserve fund is a set-aside that gives the building immediate liquidity for current expenses and unexpected costs. Here is what it is for, how it is set up and how it differs from the special fund for extraordinary works.

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Splitting metered water costs in an Italian condominium

When a condominium has individual water meters, the cost is split with a mixed system: a fixed share and a share tied to real consumption. Here is how to set up a fair, verifiable allocation.

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Reimbursement of expenses advanced by the condominium administrator

When an administrator pays suppliers and utilities out of pocket, they are entitled to reimbursement. Here is when the right applies, what documentation is needed and how long there is to claim it.

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The condominium statement of financial position explained

The condominium statement of financial position is the snapshot of the accounting balances at year end. Here is what it contains, what article 1130 bis of the Italian Civil Code requires and how to read it within the annual report.

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The condominium accounting register: what it must contain

The condominium accounting register is one of the administrator's mandatory documents. Here is what it must contain, by when movements must be recorded and why it is the backbone of the financial statement.

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Condominium expense adjustment: how to calculate it

The condominium expense adjustment is the difference between what owners paid in advance under the budget and what the building actually spent under the final accounts. Here is how it is calculated and who owes it.

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Cash or accrual basis in Italian condominium accounting

Condominium accounting on a cash or accrual basis is one of the choices that most affects the clarity of the financial statement. Here is the difference between the two bases and why case law requires a mixed system.

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The condominium account statement: how to read and check it

The condominium account statement is a snapshot of each owner's financial position: what they owe, what they have paid and the balance at the end of the period. Here is how to read the condominium account statement and check its items.

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