The property charges represent an essential aspect of managing a condominium. They include various expenses necessary for the proper functioning and maintenance of the property. These charges are distributed among all owners based on their share. Thus, each co-owner financially contributes to the preservation and improvement of the building, to ensure a pleasant and secure living environment for all residents.
These expenses may include costs related to the maintenance of common areas, collective services, building equipment, as well as other aspects necessary for the proper management of the condominium.
In the case of a rental investment, the landlord has the option to recover part of these charges from the tenant. These recoverable charges, also known as rental expenses, are the costs incurred by the owner for which they can request reimbursement from their tenant. The list of recoverable charges is established according to decree no. 87-713 of August 26, 1987.
Elevator and freight elevator: expenses related to operational electricity and expenses linked to the operation and maintenance of the elevator
Cold water, hot water, and collective heating for private and common areas: expenses related to consumption, operation, and maintenance
Individual installations: expenses related to heating, hot water production, and water distribution in private areas
Indoor common areas: electricity, supply of cleaning products (brooms, disinfectants, etc.), repair of cleaning devices (vacuum cleaner, etc.), maintenance personnel costs
Outdoor spaces: operating and maintenance expenses for roadways, parking areas, surroundings, green spaces, and playground equipment for children
Taxes and fees: household waste collection tax, street cleaning tax, sanitation fee
Guardian's salary: the salary paid to the guardian can be recovered from the tenant up to 75% if the guardian performs cleaning of the common areas and manages the garbage bins, and up to 40% if they only perform one of these two tasks.
The rest of the charges, which do not directly benefit the tenant, cannot be recovered. Non-recoverable charges notably include the property manager's fees, building insurance premiums, and expenses incurred due to the obsolescence of the building or its equipment (facade renovation, roof maintenance, bringing the elevator up to standard, etc.)
Depending on the type of your lease, payment of rental charges can be made as a lump sum or in advance.
Recoverable charges and their role in rental
Recoverable Charges as Re-invoiced Expenses to the Tenant
Recoverable charges correspond to the expenses incurred by the landlord that directly benefit the tenant in the daily use of the housing. They include maintenance of common areas, the supply of energy for lighting corridors, the operation of collective heating, or the production of hot water when centralized. These expenses are not incidental: they reflect the actual cost of operating a collective building and allow the tenant to enjoy a safe and well-maintained living environment.
They are generally collected in the form of provisions for charges, paid through a monthly provision and adjusted through annual regularization. This mechanism balances the actual expenses and the amounts paid by the tenant, ensuring the transparency that is essential in the management of rental charges.
Distinctions Between Recoverable and Non-Recoverable Charges
The distinction between recoverable charges and non-recoverable charges is based on a principle of responsibility clearly defined by the article 23 of the law of July 6, 1989. The tenant reimburses the rental charges related to the use of the housing, while the landlord remains responsible for structural work, major repairs, and management fees.
Thus, minor repairs or energy consumption in common areas are recoverable, unlike facade restoration, the replacement of a central heating system, or the syndic's fees.
This distinction, reinforced by the Alur law, helps avoid frequent confusions when certain expenses in the co-ownership budget mix with the costs re-invoiced to the tenant. Understanding this separation prevents mixing co-ownership charges and rental charges, a common pitfall that sources many disputes.
The Legal Framework Defined by the 1987 Decree
The decree of August 26, 1987 is the essential legal reference for identifying recoverable charges. This text sets out an exhaustive list of these expenses, including, for example, the maintenance of parking areas, cleaning of traffic areas, the street cleaning tax, the provision of cleaning products, or the household waste removal tax.
The limiting nature of the decree protects both tenant and landlord: no unforeseen charges can be added. This regulatory framework ensures fair management of expenses incurred in collective buildings by clearly specifying what can or cannot be included in recoverable rental charges.
The elements that make up recoverable charges
The expenses related to services rendered to the tenant
The services rendered to the tenant cover all the daily services necessary for the operation of the collective building. They include, in particular, the supply of cold water via the general meters, any production of hot water when it is centralized, and the provision of energy for the lighting of halls and corridors.
When the building has a caretaker, part of their duties can be charged back when it concerns the disposal of garbage or daily cleaning. These services are included in recoverable charges because they allow the tenant to enjoy a clean and functional environment, without having to bear the administrative management costs that remain non-recoverable.
The ongoing maintenance costs of common areas
The maintenance of the common areas represents one of the most important aspects of rental charges. It encompasses the cleaning of halls, stairwells, internal circulation routes, outdoor spaces, and household waste storage areas. These interventions promote hygiene and safety within the collective building and directly address the needs of its occupants.
Small maintenance operations, such as replacing a light bulb or cleaning accessible windows, also fall under recoverable minor repairs. Conversely, larger works, such as renovating a hall or repainting, cannot be recovered as they constitute capital expenses borne by the landlord.
The operating costs of collective equipment
Collective equipment, such as collective heating, elevators, intercoms, or automatic doors, incurs operating expenses that fully fall under recoverable rental charges. The elevator maintenance contract, periodic inspections, the provision of energy for central heating, or the production of collective hot water are part of these charges.
On the other hand, heavy works, such as replacing an elevator motor or modernizing a central heating system, remain the responsibility of the owner. This distinction is based on the concept of actual expenses related to current operations. It protects the tenant from being charged for costs that pertain to the real estate asset.
The specifics of recoverable charges in furnished rentals
In a furnished rental, recoverable charges can be calculated via a charge flat rate, a peculiarity that simplifies payment but removes the annual adjustment. However, this flat rate must correspond to the actual expenses incurred by the landlord; otherwise, the tenant could legitimately contest its amount.
When the furnished rental operates through advances, the adjustment of charges then applies in the same way as in an empty rental.
The calculation, the regularization, and the supporting documents
The calculation of provisions or the flat rate for charges
The calculation of recoverable charges is based on the provisions for charges set from the expenses incurred in the previous year. These provisions are paid each month along with the rent, which helps to smooth costs and avoid abrupt variations related to water consumption, energy supply, or maintenance of common equipment.
When the lease provides for a flat rate for charges, it replaces the monthly provision and is not subject to annual adjustment. However, its amount must remain consistent with the actual functioning of the collective building to avoid any financial imbalance or suspicion of overcharging.
The annual adjustment of recoverable charges
The annual adjustment is an essential moment: it compares the provisions paid with the actual expenses that appear in the charges account. This reconciliation allows for adjustments to payments, whether by a supplement due from the tenant or by a refund from the landlord when the provisions were too high.
This regulated process ensures a perfect correspondence between the amounts paid and the expenses incurred. It applies both to empty rentals and furnished rentals when the provision system is retained. A clear and detailed adjustment of charges helps avoid tensions and maintain a peaceful rental relationship.
The mandatory justifications provided by the landlord
The landlord must provide the tenant with the supporting documents used to establish the charges account. These documents may include maintenance invoices, maintenance contracts, general meter readings, fees related to the household waste tax, or documents from the property manager related to shared ownership charges.
The review of these supporting documents for the charges enhances transparency. It allows the tenant to verify the consistency of the expenses incurred and to contest, if necessary, any item that does not correspond to the recoverable charges.
Disputes and good management practices
Common Errors in Billing Charges
Disputes related to rental charges often arise when non-recoverable expenses, such as management fees, certain works, or structural interventions by the condo association, are mistakenly added to the charge account. These confusions frequently stem from a poor distinction between condominium charges and recoverable charges.
Another common error lies in the lack of distinction between expenses incurred for regular maintenance and heavy works. Regular cleaning is recoverable, but a complete restoration of outdoor spaces or circulation paths falls under property investment. Inaccurate billing quickly leads to justified disputes from the tenant.
Recourse in Case of Disputing Recoverable Charges
In the event of disagreement over recoverable rental charges, the tenant may first request the communication of supporting documents in order to verify each expense. If the discussion with the landlord does not yield results, a mediation before the departmental commission can be initiated, often allowing disputes to be resolved without legal proceedings.
If the disagreement persists, the law allows the tenant to take the matter to the judicial court to obtain an official decision on the rectification of the charge account. This recourse remains rare when the adjustment of charges is conducted with rigor and transparency.
Best Practices
The transparent management of recoverable charges relies on clear communication and a structured presentation of actual expenses. Keeping maintenance contracts up to date, providing complete supporting documents, strictly separating condominium charges and rental charges, and explaining the logic of charge provisions contribute to strengthening the tenant's trust.
On the tenant's side, comparing amounts from year to year, checking the consistency of water consumption, and informing oneself about legal obligations help to avoid misunderstandings. A rental relationship based on transparency greatly facilitates the understanding of expenses incurred within the collective building.
What to remember
The recoverable charges represent an essential mechanism for fairly distributing the expenses related to the daily operation of a dwelling. By clearly distinguishing between rental charges and condominium charges, landlords and tenants can manage the expenses of a collective building calmly.
The knowledge of the legal framework, transparency in the regulation of charges, and understanding of actual expenses are the foundations of a balanced and sustainable rental relationship.
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