Co-property expenses : who pays what!
As an owner, you must pay the quarterly appeal for co-property expenses. Some can be recovered and charged to the tenant in the form of a provision or a lump sum. The part recoverable appears on the annual report sent by the co-property management firm.
Between 60 and 70% of the expenses are usually recoverable. They cover the services that benefit the tenant (collective heating, elevator service, common areas cleaning, caretaker…).
Expense recovery differs for furnished and unfurnished apartments.
- For unfurnished rentals : the provision is accrued annually according to the actual amount spent, whether in favor of the owner or the tenant.
- For furnished rentals : the tenant either pays a provision or lump sum. If a lump sum is specified in the lease, no annual accrual is due.
Keep in mind that with the « réel » fiscal plan, the non-recoverable expenses are tax deductible (furnished and unfurnished).
Provision should be estimated only on recoverable expenses to avoid having to refund the tenant for overpayment.
As for the tenant, he pays directly for the following expenses (unless specified otherwise in the lease) :
- Electricity
- Gas (if relevant)
- Gas boiler maintenance (if relevant)
- Internet access
- Occupancy tax (applies only to “Code Civil” leases)
- “Ordures ménagères” (City gabarge collection) tax
- provision or lump sum for co-property expenses