Condominium expenses between tenant and owner: the split

The split of condominium expenses between tenant and owner is one of the most frequent questions when an apartment is rented out. The basic rule is simple: ordinary expenses, tied to use and daily operation, are borne by the tenant, while extraordinary expenses remain with the owner. Behind this distinction, though, lie many concrete cases worth knowing to avoid disputes. Let us see how condominium expenses are really split between tenant and owner.

Condominium expenses between tenant and owner: the principle

The guiding criterion distinguishes ordinary maintenance from extraordinary maintenance. Ordinary maintenance means the periodic and predictable works needed to keep the common parts efficient and to repair wear due to use. Extraordinary maintenance, by contrast, concerns non recurring works that affect the value or structure of the property. The Civil Code, in art. 1576, places extraordinary repairs on the landlord and leaves minor maintenance to the tenant.

What the tenant pays

The tenant, as the user of the property, bears the expenses tied to the enjoyment and current operation of the common services. Typically among the charges on the tenant are:

• the cleaning of stairs and common areas;
• the electricity of the common parts and lighting;
• the consumption of water, gas and heating;
• the ordinary maintenance of the lift and its operation;
• the ordinary maintenance of garden, intercom and small recurring repairs.

What the owner pays

The owner, as holder of the property, bears the expenses concerning the preservation and value of the property and the common parts. Typically on the owner are:

• the renovation of the roof, facade and structures;
• the installation or replacement of the lift;
• the replacement of the central boiler or heating system;
• the works to upgrade and bring the systems up to standard.

The items that are split: lift and heating

Some items split precisely because they contain both an ordinary and an extraordinary part. The lift is the clearest example: ordinary maintenance and electricity consumption are the tenant's, while installation, replacement and major repairs are the owner's. The same applies to heating: fuel and the boiler's ordinary maintenance are borne by the occupant, replacement of the system is the owner's.

The administrator's fee

The administrator's fee falls among the building's ordinary management expenses and, according to the most widely used allocation tables, is placed on the tenant. Different is the fate of exceptional extraordinary expenses or of consultancy tied to major works, which follow the main item they refer to and therefore tend to fall on the owner.

Who pays the condominium and who reimburses whom

A point often misunderstood concerns dealings with the condominium. Towards the condominium, the party liable for paying the expenses remains the owner, who is the member. The split between ordinary and extraordinary operates in the internal relationship between landlord and tenant: the owner pays the condominium and then obtains reimbursement from the tenant for the share due. For this reason the administrator, as a rule, requests the sums from the owner.

Can the contract depart from this?

The parties can agree otherwise in the tenancy contract, but with a clear limit: extraordinary expenses, which by law fall on the owner, cannot be placed on the tenant. Agreements that reasonably redistribute the ordinary items, or that refer to the allocation tables attached to the contract, remain valid and are a useful tool to prevent disputes.

When the tenant does not pay the charges

Since the owner is the one answerable to the condominium, the tenant's failure to pay the accessory charges is a problem that falls first of all on the landlord. The tenancy law, however, offers protection: failure to pay the accessory charges, when the unpaid amount exceeds two months of rent, can be grounds for terminating the contract. It is therefore in the owner's interest to request reimbursement regularly and to keep the allocation statements that document the sums due. A clear and justified request, backed by orderly accounts, is also harder for the tenant to contest.

Why clear accounting avoids disputes

Much of the friction between tenant and owner arises from unclear allocations, where it is not obvious which share is ordinary and which extraordinary. A financial statement that precisely distinguishes the items and assigns them to the correct table makes calculating what each party owes immediate and nips disputes in the bud.

AmministraPro lets the administrator produce allocations that distinguish ordinary from extraordinary expenses and provide the owner with a clear statement to pass on to the tenant for reimbursement. You can see how allocations and statements work on the features page and assess the plan suited to your firm in the pricing section.