When it comes to managing condominium properties in Luxembourg, one of the major concerns for both owners and tenants is the management of condominium charges. These charges are an essential component of condominium living, covering the expenses necessary for the maintenance, repair, and management of common areas and collective amenities within the building. These charges have an impact on both property owners' and tenants' expenditures through what are known as "recoverable" charges.

What Do Condominium Charges Cover?

Condominium charges encompass a range of diverse expenses aimed at ensuring the proper functioning, preservation, and enhancement of the condominium building. These expenses typically include:

• Maintenance and Repairs: Costs associated with regular maintenance and necessary repairs of common areas, such as hallways, elevators, roofs, facades, green spaces, etc.
• Management and Administration: Fees related to the professional management of the condominium, such as syndic fees, administrative management costs, expenses for holding general assemblies, etc.
• Common Current Charges: Collective expenses incurred for the well-being of all occupants, such as lighting of common areas, cleaning fees, water, and electricity consumption for communal spaces, etc.
• Reserve Fund: Funds set aside to address unforeseen or significant future expenses, such as roof renovation, elevator replacement, etc.
• Insurance: Insurance premiums covering the building and common areas against risks such as fire, water damage, liability, etc.
• Work Fund: Since August 1, 2023, the establishment of a work fund has become mandatory in Luxembourg. This fund is used to anticipate any type of work related to energy renovation, the creation of infrastructure and installations related to common areas, or the production and storage of renewable energies. The annual contribution is mandatory and depends on the Energy Performance Certificate (EPC) of the property. It is set at €3/m² for the most energy-efficient classes (A-C) and €6/m² for the least efficient properties (F-I).

Read the article: Understanding the Energy Performance Certificate (EPC) in Luxembourg

Allocation of Charges

The allocation of condominium charges in Luxembourg is determined based on the share of each private unit in relation to the total shares of the building. Each unit's share is usually defined in the condominium regulations, based on the size, location, and relative value of each unit.

Charges are thus distributed proportionally to the respective shares of each owner. For instance, if an owner holds a 10% share in the building, they will bear 10% of the total condominium charges. This method of allocation ensures relative fairness among all co-owners.

Management of Condominium Charges

The management of condominium charges is often entrusted to a professional syndic or a condominium board elected from among the owners. The syndic is responsible for collecting charges from co-owners, managing expenses according to the budget, and ensuring financial transparency.

Charges are commonly payable monthly or quarterly, and funds are typically held in a designated bank account in the name of the condominium. The syndic regularly presents an account statement and a budget projection during general assemblies, providing owners with a clear view of expenses and upcoming projects.

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