Costs & ROI
Who pays for the software: the practice or the condominium
Who should pay for management software, the manager or the condominium? The answer is not single, but depends on how the expense is framed. As a general rule the software is a working tool of the practice, so its cost falls among the manager's expenses and is covered by the agreed fee. In some cases, however, part of the software delivers services directly to owners, such as the portal for viewing documents and payments, and can legitimately be proposed as a condominium cost. Distinguishing the two situations is essential to avoid disputes and to keep the relationship with owners transparent. This guide clarifies the principles to follow, with references to the Italian Civil Code and Italian condominium practice.
The general principle: a working tool of the practice
Like the computer, the accounting software or the phone subscription, management software is one of the tools with which the manager performs the role. As a working tool, its cost is part of the practice's general expenses and is covered by the fee agreed with the condominium at the time of appointment.
This principle has a practical basis: Article 1129 of the Italian Civil Code requires the manager to specify their fee upon acceptance of the appointment, on pain of nullity of the appointment. The fee is therefore the consideration for the entire activity, tools included. Charging the condominium separately for the cost of a tool the manager works with, without having declared it, exposes you to disputes because it would be an unagreed charge.
The exception: services delivered directly to owners
There is, however, a part of the software that is not only an internal tool but delivers a service enjoyed directly by owners. The portal where each owner views statements, documents and the status of their own payments is a benefit to the building and its residents, not only to the manager. In this case it is legitimate for the related cost to be framed as a condominium expense.
The distinction is not formal: it concerns who benefits from the service. If the benefit is the manager's, who works better and faster, the cost is the practice's. If the benefit is the condominium's, which gains transparency and access to its own data, the cost can be the condominium's. Many software packages contain both dimensions, and correct practice is to distinguish the internal share from the one aimed at owners.
How to frame the expense transparently
Whatever the choice, the keyword is transparency. If the software cost is internal to the practice, it should be taken into account when setting the fee, without surprise items charged to the condominium. If part is proposed as a condominium cost, it must be clearly declared and shown in the management budget, which the owners' meeting approves together with the allocation.
- Declare the choice at appointment, consistently with the fee under Article 1129 of the Italian Civil Code.
- If the cost is the condominium's, show it in the budget with an understandable description and put it to the vote.
- Do not charge separately for a working tool already covered by the fee.
- Distinguish the practice's internal share from the one for services aimed at owners.
- Record the resolution in the minutes, so the item is hard to challenge later.
Why correct framing suits everyone
Clear framing protects both the manager and the owners. The manager avoids disputes over undeclared costs and keeps a relationship of trust; owners know exactly what they pay and why. A cost appearing without explanation, by contrast, feeds suspicion and can become a source of friction or of non-renewal of the mandate.
Economically, it is often simpler to include the cost in the fee and highlight the benefits the software brings to the condominium, such as accuracy of accounts, timeliness and transparency, rather than introducing a separate item. AmministraPro is designed to serve both needs, with working tools for the practice and a portal for owners, at a predictable fee: the features and plans are described on the site's features and pricing pages, useful for the manager in deciding how to frame the expense transparently.
Frequently asked questions
Does the management software cost fall on the manager or the condominium?
As a general rule it falls on the manager, because the software is a working tool of the practice, whose cost is covered by the fee agreed at appointment under Article 1129 of the Italian Civil Code. The exception is the part of the software that delivers services directly to owners, such as the portal for documents and payments, which can legitimately be framed as a condominium cost if declared transparently.
Can I charge the condominium separately for the software?
Only if it corresponds to an identifiable service provided to owners and if it was declared transparently, shown in the management budget approved by the owners' meeting. Charging separately for a manager's working tool already covered by the fee, without having agreed it at appointment, exposes you to disputes because it would be an unagreed charge.
How do you distinguish the practice's share from the condominium's?
Based on who benefits from the service. If the benefit is the manager's, who works better and faster, the cost is the practice's and is covered by the fee. If the benefit is the condominium's, which gains transparency and access to its own data through the portal, the cost can be the condominium's. Many packages contain both dimensions, and correct practice is to distinguish them.
Is an owners' meeting resolution needed for the software cost?
If the cost is framed as a condominium expense, yes: it should be shown in the management budget with a clear description, discussed and approved by the owners' meeting together with the allocation, with the resolution recorded in the minutes. If instead it is internal to the practice and covered by the fee, no separate resolution is needed, but the choice should be consistent with what was declared at appointment.
Is it better to include the software in the fee or show it separately?
It is often simpler to include it in the fee and highlight the benefits it brings to the condominium, such as accuracy of accounts, timeliness and transparency, avoiding a separate item that requires explanation. Whatever the choice, it must be made transparent. AmministraPro serves both the practice and owners at a predictable fee, with features and plans described on the site's features and pricing pages.
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