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A condominium management company adds value when it carries out, methodically, the administrator’s duties set out in the Portuguese Civil Code: calling the general meeting, preparing the budget and accounts, collecting the charges, checking the insurance and the reserve fund, and carrying out decisions on time. The law allows the role to be held by an owner or by a third party, and to be paid. Here we explain what the law requires and the five concrete benefits of handing the role to a company.
In short
- The administrator is elected and dismissed by the general meeting; the term is, as a rule, one year, renewable.
- The role can be held by an owner or a third party, and it can be paid.
- The law sets deadlines: annual meeting in the first half of January, 10 days’ notice, decisions carried out within 15 working days, statement of debts within 10 days.
- For extraordinary works, the administrator must present at least three quotes.
- Whoever holds the role is liable if they fail to carry out their duties.
What the law says about the administrator
The administrator is elected and dismissed by the general meeting. If the meeting does not elect one, a court can appoint one at the request of any owner (article 1435 of the Civil Code). In other words, having an administrator is compulsory, but it does not have to be a company.
«4 – O cargo de administrador é remunerável e tanto pode ser desempenhado por um dos condóminos como por terceiro; o período de funções é, salvo disposição em contrário, de um ano, renovável.» — Civil Code, article 1435(4)
In plain English: the role can be paid, it can be held by an owner or an outsider, and the term is one year, renewable, unless agreed otherwise. Whoever holds it is liable if they fail to carry out the duties given by law and by the meeting (article 1436(3), as amended by Law 8/2022).
5 benefits of a condominium management company
1. Legal deadlines are met
The law sets several deadlines for the administrator:
- annual meeting in the first half of January (article 1431);
- notice of the meeting at least 10 days in advance (article 1432);
- decisions carried out within 15 working days (article 1436(i));
- statement of debts issued within 10 days (article 1436(q)).
A team with a calendar and reminders reduces the risk of missing one. A volunteer owner, with a job and a life of their own, finds it harder to guarantee all these deadlines every year.
2. Arrears recovered under clear rules
The administrator must demand each owner’s share, with legal interest and any penalties approved (article 1436(f)). If the debt is equal to or above that year’s IAS, court action should be started within 90 days of the first missed payment, unless the meeting decides otherwise (article 6(5) of Decree-Law 268/94). In 2026 the IAS is €537.13 (Ordinance 480-A/2025/1).
For a neighbour, chasing another neighbour is uncomfortable. A company treats recovery as a procedure: reminders, deadlines and, if needed, legal action based on the minutes. See what to do about debts to the condominium.
3. Clear accounts
Preparing the annual budget and presenting the accounts to the meeting are among the administrator’s duties (article 1436(b) and (l)). When every owner can see the expenses, invoices and minutes, the annual meeting becomes a discussion about priorities rather than a discussion about trust. Our guide to how the monthly condominium fee is calculated shows what the accounts should make clear.
4. Works with comparable quotes
«2 — Sempre que estiver em causa deliberação da assembleia de condóminos relativamente a obras de conservação extraordinária ou que constituam inovação, a realizar no edifício ou no conjunto de edifícios, o administrador está obrigado a apresentar pelo menos três orçamentos de diferentes proveniências para a execução das mesmas, desde que o regulamento de condomínio ou a assembleia de condóminos não disponha de forma diferente.» — Civil Code, article 1436(2) (Law 8/2022)
In plain English: for extraordinary repairs or improvements, the administrator must bring at least three quotes from different suppliers. A company with a network of suppliers can obtain comparable quotes, based on the same specification and the same deadlines. This makes the meeting’s decision easier and avoids choosing the lowest price without looking at what is included. See types of works in condominiums.
5. Fewer disputes between neighbours
A third party with no units in the building applies the regulations neutrally (article 1436(m)). It also keeps owners informed of any court or administrative proceedings, at least every six months (article 1436(o) and (p)). Our article on settling disputes between neighbours explains when the administrator should step in.
Owner administrator or company: a comparison
| Topic | Volunteer owner | Management company |
|---|---|---|
| Legal basis | Art. 1435(4) Civil Code | Art. 1435(4) Civil Code |
| Availability | Depends on free time | Team and hours set in the contract |
| Legal deadlines | Tracked by hand | Calendar and reminders |
| Neutrality | Also a neighbour with an interest | Third party with no units in the building |
| Cost | Can be unpaid or paid | Paid (amount approved by the meeting) |
What the proposal and contract should include
Before voting, the meeting should have a written proposal that answers at least these questions:
- Services included: notices and minutes, budget and accounts, recovery of arrears, supplier management, supervision of works, emergency response.
- Services charged separately: for example extraordinary meetings, legal proceedings or statements of debt, if the company charges for them.
- Accounts and documents: which bank account holds the condominium’s money, how owners can see the statements and where the minutes and invoices are kept.
- Contact and emergencies: who answers, at what times and how faults are reported.
- Term and exit: length of the term and how the documents are handed over if the meeting changes administrator.
The price is approved by the meeting. Comparing proposals only on the monthly price is misleading: two proposals at the same price may include very different services.
How to choose and make the change
- Ask for a written proposal, with the services included and the price.
- Check how the accounts are presented and where the documents are kept.
- Ask how arrears are recovered.
- Check the length of the term (as a rule, one year, renewable).
- Put the proposal to a vote at the general meeting, with the election of the new administrator on the agenda.
The election is decided by the meeting, by a majority of the votes representing the building’s value, unless a special rule applies (article 1432 of the Civil Code). If you already have an administrator and are not satisfied, see unhappy with your administrator: 7 measures you can take.
How Condoroo helps
Condoroo manages more than 600 condominiums, including buildings with more than 300 units, with a team of more than 20 professionals. We carry out more than 35 inspections a day, around 700 a month, and hold the DECO PROteste seal for the third year running. Every building’s bank account is in the condominium’s name, and our plans start at €6.50 per unit per month.
Condominium management company: frequently asked questions
Is it compulsory to hire a condominium management company?
No. The administrator can be an owner or a third party (article 1435(4) of the Civil Code). What is compulsory is having an administrator: if the meeting does not elect one, a court can appoint one at any owner’s request (article 1435(2)).
How long does the administrator's term last?
One year, renewable, unless agreed otherwise (article 1435(4)).
Who approves hiring the company?
The general meeting, which elects and dismisses the administrator (article 1435(1)), by a majority of the votes representing the building’s value, unless a special rule applies (article 1432(5)).
Must the company present several quotes for works?
Yes. For extraordinary repairs or improvements, at least three quotes from different suppliers, unless the regulations or the meeting provide otherwise (article 1436(2)).
Is the administrator liable for failing in their duties?
Yes. They are liable for the omission, without prejudice to any criminal liability (article 1436(3)).
What should I compare between proposals?
The services included, what is charged separately, how the accounts and documents are made available, the emergency contact and the term of the contract, not just the monthly price.
This article is for information only and does not replace legal advice on your specific case. Legislation checked on 26 October 2026.
