Transparency on the Condominium's Common Revenues

A condominium does not only generate expenses, it can also produce revenues: the lease of a common room or space, fees for installing antennas or advertising signs on the facade, interest accrued on the condominium bank account. These proceeds belong to all owners in proportion to their thousandths (millesimi), unless otherwise agreed, and must appear clearly in the annual statement. Transparency on revenues is as important as transparency on expenses: owners have the right to know how much the condominium collects and how those sums are used.

Typical common revenues

A condominium's revenues arise from the economic exploitation of the common parts, decided by the meeting with the required majorities. They are common because they arise from common assets, and therefore follow the rules of joint ownership.

• Rent from common premises, such as the former caretaker's flat or an unused room.
• Fees for installing telecom antennas or third-party equipment on the common parts.
• Income from advertising spaces, such as signs or billboards on the facade, roof or fence.
• Interest accrued on the balances of the condominium bank account.
• Refunds and penalties collected from suppliers or contractors.

The meeting's decision

The economic exploitation of a common asset, such as leasing a space or granting the facade for a sign, must be decided by the meeting with the majorities appropriate to the type of act. A long-term grant, or one that significantly affects the use of the asset, requires higher majorities than ordinary use. The resolution sets the conditions, duration and consideration, and is the title the manager executes.

Recording in the statement

Every item of revenue must be recorded in the accounting register and reported in the annual statement, in the financial summary and in the balance-sheet position. Revenues cannot be kept off the books or opaquely offset against expenses: they must appear separately, so that owners can verify their amount and destination. The proceeds must pass through the condominium bank account, consistent with the duty to channel all management sums into it.

How revenues are distributed

Unless otherwise agreed or provided by the regulations, common proceeds are shared among owners in proportion to their ownership thousandths (millesimi), in the same way as expenses. In practice, the meeting may decide to use the revenues to reduce common expenses, to feed a fund or to credit them to owners at the balancing stage. Whatever the choice, it must be resolved and documented, not left to the manager's discretion.

The tax aspects

Some common revenues have tax relevance. Income from the lease or grant of common assets may be attributed to individual owners in proportion to their shares and included in their own tax return, while in certain cases the condominium acts as a withholding agent. The matter is technical: the manager must handle it carefully and, where needed, with the support of an adviser, to avoid errors in communications to owners and to the tax authorities.

Why revenue transparency matters

Failing to account clearly for revenues is one of the most frequent causes of distrust towards the manager, because it fuels the suspicion that part of the takings has not been properly credited to the condominium. Making the amounts, source and destination of common proceeds evident, with the related supporting documents, protects both the owners and the manager, who demonstrates the correctness of their conduct.

Recording income and expenses in one system

Keeping income and expenses together, with consistent supporting documents and allocations, is easier with software that links accounting, bank account and statement. AmministraPro lets you record common revenues, distribute them according to the thousandths and display them clearly in the statement and in the owners' private area. The features are described on the /funzioni page and the plans on the /prezzi page.