Is There an Upper Limit on Fee Increase?

Is There an Upper Limit on Dues Increase?

Dues are an important expense item for those living in a building or complex in terms of the organization of the living space and the continuity of services. However, from time to time, we may encounter a demand for an increase in these fees. So, is there any upper limit on dues increases? What should be considered in this regard?

Dues Increases within the Framework of Legal Regulations

First of all, it should be noted that dues increase rates cannot be determined randomly. According to the Condominium Law, dues are charged for the common expenses of the building or complex and their maintenance. Therefore, these expenses must be realistic and documented when deciding on a dues increase.

Dues increase decisions are usually taken at the annual ordinary general assembly meeting and accepted by a majority vote of the condominium owners present at the meeting. However, there is a critical point here: The decision must be in accordance with the law.

Attention to Increase Rates!

In some cases, we can see that the increase rates reach exorbitant levels. Property owners have the right to object in such cases to protect their rights. If the rate of increase in dues is above the market conditions and building expenses, the owners may apply to the civil court of peace and request the annulment of the decision. It should therefore be ensured that the increase rates are calculated transparently.
 

Inflation and Fee Increases

In our country, inflation rates are often taken as a basis for dues increases. However, this is not a mandatory rule. The actual situation of the building's needs and common expenses should be the main factor in determining the increase rates. Therefore, one should not fall into the misconception that “we have to increase as much as the inflation rate”.

How to Act Against the Increase in Dues?

If there is a problem with the dues increase, the following steps can be followed:

Review the Meeting Minutes: Review the decisions taken at the general assembly. Is the increase in accordance with the law?

Request Expense Documents: Ask for documentation of the expenses presented as justification for the increase.

Get Professional Support: Consult a lawyer to find out your rights regarding dues increases.

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