8 Golden Rules in Condominium Management
Condominium administration is not an easy task at all, it requires dedication, organization and a certain amount of patience. As such, to facilitate this task, certain rules and good practices must be followed, which allows for more effective and harmonious management. In this article, we present 8 rules that can make your job easier when managing your condominium.
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1. Condominium management is paid
As mentioned in article 1420 of the Civil Code, condominium management and administration is paid work.
Co-owners can elect a company to manage their condominium for themselves, or elect an administrator at a condominium meeting. In both cases, the work must be paid.
2. O condomínio deve estar devidamente registado
Since the condominium is a joint group of people, it will need to have its respective tax identification number, or NIF.
The NIF allows the condominium to be identified before the Tax Administration and to be able to hire and pay any type of suppliers.
The condominium can request its NIF from the National Register of Legal Entities.
3. Condominium reserve fund
The condominium administration is required by law to set up a Common Reserve Fund, of at least 10% of the monthly dues of the respective condominium. To this end, the condominium’s own account must be set up, duly separate from the administrator’s personal account.
The remaining condominium owners must also have the right to access the condominium account records, in an autonomous and transparent manner.
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4. The condominium budget must be detailed and transparent
The condominium accounts must always be up to date and accessible to the other condominium owners, in a transparent and clear way, so that their interpretation is easy and effective.
It is crucial to have the condominium documents well organized so that the explanation of the condominium’s expenses and income is easier.
Additionally, good organization also allows for an effective reassessment of expenses incurred, thus facilitating a possible readjustment of condominium fees.
5. Condominium meetings
The annual meeting of condominium owners must occur obligatorily. At this meeting, the condominium’s annual budget is approved, possible works in the condominium’s common areas are discussed, the previous year’s costs are evaluated, among others.
However, you must convene more than one meeting of condominium owners per year, so that there is a constant debate about the condominium’s problems and their resolution.
6. Regulation for penalties for non-compliance
Este regulamento é útil para proteger o condomínio e os vários condóminos do incumprimento por parte de determinado condómino da falta de pagamento das quotas de condomínio e, ou, do incumprimento das regras de utilização dos espaços comuns.
Tendo de ser posteriormente aprovado em assembleia pela maioria dos condóminos, este regulamento deve conter um conjunto de penalizações de incumprimento relativamente casos referidos acima.
This regulation is useful to protect the condominium and the various condominium owners from failure by a specific condominium owner to pay condominium dues and/or non-compliance with the rules for using common spaces.
Having to be subsequently approved in an assembly by the majority of condominium owners, this regulation must contain a set of penalties for non-compliance in the cases referred to above.
7. Os rendimentos do condomínio devem ser declarados
The condominium’s income, although exempt from most taxation, must be declared to the tax authorities, and the administrator is also responsible for submitting the electronic income receipt on the Finance Portal.
Their presentation must be presented to the local Finance department, together with the minutes of the meeting which proves that the administrator has the necessary powers to make tax declarations on behalf of the condominium.
8. Good communication and conflict management
The existence of conflicts is normal and can create uncomfortable situations between the condominium owners involved. Many of these conflicts and confusions are caused by weak and ineffective communication.
Therefore, you must ensure efficient communication, through dialogue, in order to resolve the conflicts in question.
Conclusion
Having the role of condominium administrator is, in fact, challenging and something that will require part of your time. However, by knowing these 8 golden rules in condominium management, your work can be made easier and will allow you to manage your condominium more efficiently.
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