Owners' Association: What you need to know

The moment has finally arrived: you've signed the purchase agreement for your condominium and are wondering what the future holds. Depending on whether you plan to live in your property yourself or prefer to rent it out, you'll face very different challenges.

By purchasing a condominium or townhouse, you acquire a fraction of the total property and therefore immediately become part of the owners' association. This association of all owners makes all decisions concerning the entire property.

Private property: Your personal piece of happiness

Once the apartment is officially registered in your name, you can let your imagination run wild when it comes to decorating it. Inside, you have absolute control. You can renovate and refurbish, paint and wallpaper to your heart's content. Except for load-bearing walls, you can tear down and redecorate whatever your heart desires. No one can tell you what to do.

Common property: Everyone has the right to participate in decisions

However, when it comes to decisions affecting the entire property, including the grounds, the owners' association comes into play: all renovation or refurbishment measures must be decided jointly by the owners. Whether it's re-roofing, repairing the gutters, or repainting the stairwell, the majority must approve each measure at the owners' meeting.

Owner-occupied property

Choosing a property to relocate your life is always a big step. As a new homeowner, your responsibilities now include paying a monthly fee to the property management company. This fee covers utilities, management costs, maintenance of common areas (such as caretakers, gardeners, or cleaning staff), and reserve funds for the property's upkeep.

External use of the property

If you're using the property as an investment, you'll need to find suitable tenants. They should be solvent, agreeable, and a good fit for the building community. Take your time finding the right candidates. Renting an apartment is quick, but getting rid of undesirable tenants is difficult and costs a lot of time and energy.

Passing on housing benefit costs to tenants

Once you've entrusted your apartment to good tenants, the annual utility billing process begins. This compares the actual utility costs to the advance payments. You can then pass on the housing allowance you've invested to your tenants. But be careful: not all items can be passed on directly.

Should you have any questions about buying a condominium or the preparation of a professional utility bill, please get in touch! We will be happy to advise you personally and free of charge.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice

This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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