Do Vacant Apartment Units Have an Obligation to Pay Building Charges?
In recent years, apartment living has grown rapidly. Due to population growth and the corresponding shortage of urban space, people have increasingly turned to apartment living, making it an unavoidable reality. Although apartment living offers numerous advantages, it can also pose various legal and practical challenges.
One of the most common issues is the method used to calculate building charges, which often gives rise to disputes among residents. This issue becomes even more complex when some units within the building are vacant.
The main question regarding vacant units is whether their owners benefit from shared facilities that residents actively use.
At the same time, there are other shared services and benefits whose use is not affected by whether a unit is occupied or vacant. This raises a fundamental legal question: are owners of vacant apartment units required to pay building charges?
Legal Basis for the Payment of Building Charges under the Apartment Ownership Law
Building Charges
Building charges are the expenses that apartment owners or occupants pay to the building manager on a monthly or periodic basis, as set forth in the applicable agreement.
Each apartment unit shall contribute to these costs in proportion to its area and the facilities available within the building.
These expenses may include operational costs, such as the monthly salary of the security guard or caretaker, shared utility bills for water, electricity, and gas, and cleaning and maintenance services.
In addition to these ongoing expenses, apartment buildings also incur capital and maintenance costs. These may include repairs to the building facade, renewal or repair of waterproofing, and maintenance of mechanical and electrical installations. Such expenses may also be covered through building charges.
How Are Building Charges Calculated?
As noted above, building charges are the costs that apartment owners or residents must pay based on the facilities provided and the size of their units.
There are several methods for calculating these charges, which are typically determined by the building management board.
Common methods include fixed unit-based charges, area-based charges, per-person charges, combined person- and area-based charges, and charges calculated from actual building expenses.
Fixed unit-based charges are commonly used in residential, commercial, or administrative complexes, in which all units pay the same monthly amount.
Per-person charges are generally applied to residential units and calculated based on the number of occupants per unit.
Charges based on actual expenses are calculated by dividing the building’s real costs among the units. For example, water expenses may be calculated per person, gas expenses may be based on unit area, and electricity expenses may be charged on a fixed or per-unit basis. Other costs may be included as fixed or variable components of the total building charge.
Which Law Addresses Apartment Living and Building Charges?
Article 4 of the Apartment Ownership Law addresses shared expenses, commonly referred to as building charges, in general terms and includes three notes.
While this article explains the general principle of shared costs, it does not specifically address vacant units. However, because the law assigns decision-making authority to the building manager or management board, the management may, by agreement, apply an agreed amount to vacant units.
It is important to note that payment of these expenses is mandatory and is not dependent on whether a unit is occupied. Costs for gardening, security services, and cleaning must be paid by all units in the building, regardless of occupancy status.
Frequently Asked Questions
Yes. Payment of building charges is mandatory for all units, including vacant units, because certain expenses, such as security, cleaning, and shared maintenance, are independent of occupancy.
Building charges are payments made periodically by apartment residents or owners to the building manager. They include costs such as security staff salaries, shared utility bills, cleaning services, building repairs, and other maintenance expenses.
There are various calculation methods determined by the management board. These include fixed unit-based charges, per-person charges, area-based charges, combinations of these methods, or calculations based on the building's actual expenses.
Under this method, all units pay an equal monthly charge. This approach is commonly used in residential, commercial, or administrative buildings.
Under this method, the building charge is calculated based on the number of occupants in each residential unit.
Under this method, building charges are allocated according to the building’s real costs. For example, water costs may be calculated per person, gas costs may be based on unit area, and electricity costs may be charged as a fixed amount or per unit.
Article 4 of the Apartment Ownership Law addresses shared expenses and authorizes the building manager to determine specific amounts. Payment of building charges is not related to whether a unit is occupied or vacant. Do vacant apartment units have to pay building charges?
What are building charges, and what expenses do they include?
How are building charges calculated?
What are fixed unit-based charges?
What are per person charges?
How are charges calculated based on actual expenses?
What does the Apartment Ownership Law state?
Are vacant units responsible for every type of maintenance fee?
Not necessarily. In many cases, vacant units remain responsible for fixed maintenance and shared building expenses, while certain usage based charges may be treated differently depending on the applicable law and building regulations.
If nobody is living in the apartment, why is the owner still expected to pay maintenance fees?
Because many expenses, such as cleaning, security, elevators, and building repairs, benefit all owners regardless of whether their individual units are occupied.
I appreciated how the article separated fixed costs from usage based costs. Is that distinction common in apartment management?
Yes. Many apartment management systems distinguish between fixed expenses related to the building itself and variable expenses that depend on actual use.
If an apartment stays vacant for several years, does the owner’s obligation usually continue?
Generally, yes. Ownership typically carries continuing responsibilities for shared building expenses unless the applicable law provides otherwise.
Can a building manager take legal action if maintenance fees remain unpaid?
Depending on the applicable law, building management may have legal remedies to recover unpaid maintenance charges from the responsible owner.
Can owners and the building management agree on a different payment arrangement?
In some situations they may reach an agreement, but any arrangement should remain consistent with the governing law and the building’s applicable rules.
Are major repair expenses usually shared by all owners as well?
Yes. Significant repairs and improvements to common areas are often treated as shared expenses because they preserve the value and safety of the building.
If an owner disagrees with the maintenance calculation, what should they do first?
They should review the calculation, request supporting documents if necessary, and seek legal advice if the dispute cannot be resolved through discussion.
Would you recommend keeping records of maintenance payments even if the apartment is vacant?
Absolutely. Keeping payment records can help resolve future disputes and demonstrate compliance with the owner’s legal obligations.
Is it a good idea to review the building regulations before purchasing an apartment?
Yes. Reviewing the building rules and maintenance obligations before purchasing a unit helps buyers understand their financial responsibilities and avoid unexpected issues later.