How Are Common Expenses and Service Charges Shared?

Nothing causes more argument in building management than how the service charge is divided. Article 20 draws a clear distinction, and in practice the most common mistake is simply not knowing it.

Two different rules

Unless the owners have agreed otherwise, each owner contributes:

a) Equally, to:

• The caretaker’s cost
• The boiler operator’s cost
• The gardener’s cost
• The watchman’s cost

b) In proportion to land share, to:

• Insurance premiums for the property
• Maintenance, protection, strengthening and repair of all common areas
• The manager’s fee
• Operating costs of shared facilities

So a 60 m² flat and a 200 m² flat contribute the same amount to the caretaker’s wages, but contribute to a roof repair in proportion to their land shares.

Note: this rule is not mandatory. A different split may be set in the management plan or by a unanimous decision of the owners. Absent such an arrangement, the statutory distinction applies.

What if an owner refuses?

The law is equally clear here: an owner must contribute to common expenses even if the unit is not used. “The flat is empty” or “I don’t use the lift, so I won’t pay” is not a valid defence.

An owner cannot avoid the charge by claiming no need to benefit from the common areas.

Tenant liability

Under Article 22 the tenant is jointly liable with the owner for common expenses and advances. The tenant’s liability is, however, limited to the rent payable, and any payment made is set off against the rent.

This means management may pursue the debt from either the owner or the tenant.