The proportion of owners in arrears on their condominium fees (community fees) in Spain is higher than ever, reveals a new study.
Non-payment of community fees have doubled in four years to 1.9 billion Euros, according to a new study by Arrenta. The proportion of owners not paying their community fees rose 19pc in 2013 alone.
When some owners in a condominium, known as a community of owners in Spain, don’t pay their share of the community fees, the financial burden rises on those who do.
In most cases it leads to failure to invest in the maintenance of residential buildings, and a faster depreciation of the common areas that add value to the community. The end result is a lower capital value for all owners, whilst those who do pay subsidise those who don’t.
The problem of condo fee arrears is largest in Andalusia (19.4pc), followed by Catalonia (16.5pc), Madrid (14.7pc), and the Valencian Community (10.6pc).
Arrenta forecast that the problem of arrears on community fees will rise in the coming years as the economic crisis drags on and property owners struggle to pay their bills.