Homeowners pay administration fees to cover maintenance and repairs of common areas in the apartment building, as well as fixed expenses for caretakers, gardeners, and security guards. The fee is calculated based on the costs associated with managing the apartment building. Dues are collected periodically by the members of an association, institution, or foundation created by the apartment dwellers or by the apartment manager.
As per the Apartment Laws, which cover legal regulations on dues, owners are typically required to contribute to the expenses of janitors, heaters, gardeners, caretakers, insurance premiums for the apartment building, maintenance, protection, strengthening, and repair of all common areas, as well as other expenses, such as the manager's salary, distributed proportionally based on their land share.
Why is the Apartment Administration Fee Collected?
First of all, residents who own an apartment in Turkey pay apartment fees to cover shared expenses. These expenses can cover various things that are beneficial to every resident in the apartment, such as building maintenance and repairs, cleaning, security, internet, water, natural gas, janitor salary, and electricity usage in common areas.
Apartment fees are essential for protecting residents' communal interests and enhancing the value of the apartment building. There are apartments with janitors who clean the apartment, ask residents if they need anything, and go to groceries for them. Some of them are also good gardeners and take care of the common green areas of the condominium. Other than that, there may be possible expenses such as;
- Water and electricity bills,
- Natural gas bill if central heating is available,
- Building attendant's salary,
- Gardener's salary if there is a garden,
- Salary if there is a guard-security,
- If there is a heating boiler, expenses such as the salary of the heater are included in the dues.
How is the Apartment Administrative Fee Determined?
To ensure transparency and accountability, the finalized administration fee is communicated to all unit owners in writing. Alternatively, a report outlining the building's income and expenses may be displayed at the entrance, allowing residents to gain insights into the management's financial operations and the allocation of their contributions.
As a general guideline, the monthly administration fee for an 8-story apartment building typically falls within the range of 30,000 Turkish lira (approximately $1,100). Consequently, individual unit owners can expect to contribute a minimum of $50 to $100 per month towards the upkeep of their shared living space.
When Do You Pay the Administration Fee?
Usually, the apartment building manager chooses a date, or the residents agree on a date, for collecting dues each month from all residents. All residents must pay by the agreed date. If residents fail to pay, the residential compound's management company, assigned by the construction company, may charge them interest or sanctions, which could cause legal issues. Even if residents do not use the common areas, they still need to pay the fee.
What Happens If Administration Fees Are Not Paid or Delayed?
Not paying regularly or paying less than what is due can result in serious legal problems. Legal action, including enforcement proceedings, can be taken against apartment owners who do not pay their dues. Furthermore, if dues are not paid, interest will accumulate on the overdue amount.
The interest amount specified in the Apartment Law will be applied, which might vary from year to year. The apartment owner who fails to pay the full amount of the apartment fee is obliged to pay delay compensation for the days he/she is late in payment, calculated at five percent per month.
Do Tenants Have to Pay the Administration Fee?
According to the Apartment Ownership Law, landlords are legally bound to cover the apartment fees, which encompass expenses like janitorial services, heating, gardening, security, management salaries, and maintenance of common areas. However, it's common practice for landlords to include this fee in the lease agreement as an additional payment along with rent, making tenants responsible for paying it.
In cases where tenants fail to pay the administration fees, the landlord is initially contacted as they ultimately bear the legal responsibility for these shared expenses. If the landlord also defaults on these payments, the apartment manager or other homeowners on the same floor can pursue legal action, which could ultimately result in a lawsuit against the tenant.
Transparency and communication are key to maintaining a harmonious living environment. Landlords should clearly outline the administration fees in the lease agreement and ensure tenants understand their financial obligations. Tenants, in turn, should promptly fulfill their payment responsibilities to avoid any legal repercussions.
When Does the Obligation to Pay Administration Fees Begin?
With the transition to apartment ownership, the obligation to pay is transferred to the owner. Whoever is the owner of the real estate is the person who is obliged to pay the fees. The owner is obliged to pay this debt even if he does not live in the apartment. However, if the occupancy and the construction servitude have not yet taken place, in this case, the person obliged to pay the debt is the contractor.
In addition, the owner may have rented the property to someone else. In this case, will the tenant be liable or the landlord? The primary responsibility lies with the owner. However, the tenant is also responsible for paying the fees during the tenancy period.