Community of owners: Why is the community asking me for extra money and do I need to pay it?

Sometimes in a Spanish community of owners you will be asked to pay mandatory fees on top of your monthly quota

No one likes the nasty shock of having to pay out unforeseen expenses, and one of those that can sometimes come up if you live in a community of neighbours in Spain is what is known as a ‘derrama’.

Translating literally to ‘spill’, a derrama is an extraordinary payment that is required by homeowners to be paid to their community of owners on top of their usual monthly community fees.

One of the obligations of the owners is to contribute to the “general expenses for the adequate maintenance of the property, its services, charges and responsibilities that are not susceptible to individualisation”, as established in article 9 of the Horizontal Property Law (LPH).

But what legal basis do additional payments have, and are you always obliged to pay them? As the community administration experts and legal professionals at Resortalia point out, these extraordinary payments are must be paid to maintain the basic functioning of the community and its good condition. They are expenses that were not foreseen in the annual accounts of the community and which serve to address specific improvement needs such as the repair of an elevator in an apartment building, for instance.

The LPH stipulates that these ‘derramas’ must always be consulted and approved at a meeting of owners and the amount must be agreed among them, although the law does not set a maximum cost. Each member of the community pays according to the type and size of the property they own, on the same basis that the usual monthly fees are worked out.

Although the payment of these agreed fees is mandatory to improve the safety and accessibility of the building, the owners may refuse to pay those extraordinary expenses that are only to improve the aesthetics of the building or that are not necessary.

Consequently, the owner in the neighbourhood meeting may vote against carrying out said work and refuse to pay it. Disagreements in neighbourhood communities are quite common, especially in those issues that involve financial expense. As a general rule, not everyone will agree to pay these extraordinary expenses and different amounts will also have to be paid.

Therefore, to solve any possible problems that may arise, many communities choose to turn to a community administrator such as Resortalia for such issues. They have experience in administrating the affairs of multilingual communities on the Costa Blanca and Costa Cálida. Contact them for advice and help with your community’s needs, management and conflict resolution:

Resortalia community management professionals and administrators in Murcia and Alicante

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Avenida de la Libertad, 301, Edificio Europa 2º1, 30710, Los Alcazares, Murcia

Tel: +34 968 104 710 / +34 965 06 36 13

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Trusted multilingual community administrator for solving resident and property owner issues on real estate developments on the Costa Cálida and Costa Blanca

Resortalia is an established community property administration company based in Los Alcázares, Murcia and in Orihuela Costa, Alicante that handles the management of numerous multilingual residential complexes, developments and urbanisations.

When you live on an urbanisation or have a house on a real estate development in Spain with lots of other property owners, you need external help to mediate and control the financial, technical and legal issues of the community. That’s where Resortalia comes in.

Resortalia includes a great human team of community administration experts who specialise in managing multilingual communities and solving any problems that may arise among the community of owners, wherever they’re from and whatever language they speak.

Their community property management service involves ensuring the correct running of the installations, as well as controlling the financial, technical and legal issues necessary for optimal maintenance and economic management.

The company’s motto is “We Care”, a value statement that reflects their philosophy for caring about their clients and the communities they administrate. This includes:

Commitment to helping clients achieve their goals in the most cost-effective way possible.
Transparency of communication with owners regarding information about the community’s accounts and contracts.
Quality when it comes to implementing advanced management systems for the property administration.

Whether your community needs to adapt to meet changing urban planning regulations and health & safety laws or you need to organise payment and debt collection from owners or debtors, or you wish to change the suppliers and contractors the community is associated with, Resortalia is on hand to help.

They are also able to handle multiple issues surrounding building codes and problems with the communitys facilities or installations, as well as undertake resolution of conflicts between neighbours or between the community of owners and an outside body.

All of this is carried out by an experienced and qualified team of professional accountants, architects and engineers who are experts in the latest updates in accounting and financial matters and are trained in helping committees and presidents to achieve their objectives, improve on their planning strategies and optimise the direction and smooth running of the entire community.

What’s more, the whole team of staff at Resortalia are on the best of working terms with both public and private entities related to the daily running a community, including everyone from Town Councils to water companies, builders, painters, landscapers and electricians.

Not only can this aid communities of property owners to resolve their fiscal and legal issues, but it can save money in the long run by implementing customised solutions that help the daily activity of clients, offering effective and real support with a human-face.

For more information on how to help your community meet its goals, contact the Resortalia team today.