Defaults on community fees surge 19pc in 2013

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Maintenance of pools and other communal facilities are paid out of community fees.

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.

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4 thoughts on “Defaults on community fees surge 19pc in 2013”

  1. France Fradet

    In my comunidad de vecinos, we are paying 600 euros a month for a gardener who comes about two hours a week if that, and when we have tried to get rid of the administrator who charges this (for 12 months of the year, not just the summer months) we have got nowhere. I don’t understand why I can’t as a private individual opt out of the use of the pool and gardens and tennis courts (I never use any of the facilities).

    Many people don’t pay their comunidad precisely because there are terrible abuses by the administrators and meetings are undemocratic. If it was easy to denunciar sharp practise and stealing by administrators, people would do so. As things stand, people feel powerless against unscrupulous administrators, so they do the only thing they can, and withold their money.

    1. Buster

      I have to agree with you there, as we seem to have the same problem in our community. According to my neighbour, the committee is run by the Spanish members who do very well out of the whole set-up themselves by way of admin charges which exacerbate the apparent overcharging for the swimming pool maintenance.

    2. Profile photo of Mark Stücklin

      This is a very good point. I’ve heard of many cases where the administrator is taking the community to the cleaners, which ends up some not paying their bills in disgust, placing a greater burden on those that do.

  2. Dave

    We have a few defaulters but that has not risen in the past 10 years. There are 4 apartment blocks for which we pay 440 euros a year that includes electric, water, lift mtce, cleaning etc. Its all managed by the administrator and the president with a small team of committee members the running of the community is fully inclusive and open in fact we have just been audited for the first time this was voted for in our last agm and will be conducted every year to give us further confidence in how things are run. Oh and defaulters are taken to court the worst offenders are the banks when an apartment has been repossessed.

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