Can Fees Be Increased If Heating Fuel Expenses Increase?

approach of winter months, changes in the expenses of apartment management also begin. The introduction of heaters, especially in buildings heated by the centralized system, increases the share of fuel costs in the apartment budget.

Moreover, taking into account the increases in fuel prices, one wonders whether the fees set at the beginning of the year will be sufficient in winter.

So, can the fee be increased if the heating fuel expense increases?

answer to this question can be given not only by looking at the price of fuel. The current operating project of the apartment building, the expenses incurred, the remaining budget and the decisions of the board of floor

Why do fees come up when heating costs increase?

determining apartment fees, the expenses expected to be incurred during the year are calculated. Expenses such as cleaning, elevator maintenance, electricity, maintenance-repair, personnel and heating fuel can be included in this budget.

However, it is possible that forecasts will change during the year.

Increased consumption, for example, due to rising fuel prices at the beginning of the winter season or colder weather than expected, can cause heating costs to exceed the amount projected at the beginning of the year.

In this case, it is recalculated whether the expenses of the apartment can be covered by the existing dues.

Is the fee automatically increased when the fuel expense increases?

No. The increase in the price of fuel does not mean that the fee will change automatically

Management first of all needs to assess the current business project and the financial condition of the apartment building. If the established budget no longer covers the expenses, the necessary budget adjustment must be carried out in accordance with the procedures specified in the Law on Condominium.

In cases where there is no business project approved by the general assembly of floor owners, the law contains regulations on the preparation of a temporary business project by the manager.

Therefore, instead of a unilateral application in the form of “fuel has become expensive, we are increasing the levy this much”, it is important to calculate the increased expense and the amount needed.

Can the owners of the floor object to this change?

The process of notification and appeal of the business project to the owners of the premises is also regulated by law.

The business project is notified to the owners of the floors or to the actual beneficiaries of the independent part in exchange for a signature or by a signed letter. It can be appealed within 7 days from the date of notification. In case of objection, the issue is considered in the board of floor owners.

For this reason, it is important to make it clear from which expenses the change that is planned to be made in the contribution or expense advance is important from the point of view of apartment management, as well as from the point of view of the owners of the floors.

Why is it important to keep track of fuel costs?

In the case of expenses that reach periodically high amounts, such as heating fuel, it may not be enough to look only at that month's expenditure.

Knowing how much fuel has been spent in past years, how much has been paid so far this year and how much resources are left in the current budget makes it possible to make a more realistic calculation for the rest of the winter season.

The same applies to other expenses of the apartment. Regular recording of expenses and tracking dues collections helps management to see more easily what the budget is in

The fact that the past period expenses can be reached quickly, especially when necessary, also provides an important convenience when preparing the budget for the new period.

What happens if the fuel advance is not paid?

It is also important to collect the contributions or expense advances determined in a timely manner so that heating expenses can be covered.

Pursuant to Article 20 of the Condominium Law, a lawsuit and enforcement proceedings can be made against the owner of the floor who does not pay the share of expenses and advances. In addition, a 5% monthly delay compensation is applied for unpaid expenses or advance share

That is why for the healthy progress of the apartment budget, it is necessary both to correctly calculate expenses and to collect the established fees in a timely manner.

Conclusion

Increased heating fuel costs can lead to insufficient current budget of the apartment building. In such a case, reconsideration of the contribution or expense advance may be raised.

But the change to be made should not be determined arbitrarily based solely on the increase in the price of fuel. The current operating project, the realized expenses, the estimated expenses for the remaining period and the relevant legal regulations should be considered together.

The fact that management regularly records expenses and keeps track of dues collections makes this process much easier to manage. Thus, both the financial situation of the apartment building can be seen more clearly and the information to be made to the owners of the floors becomes more understandable.