Recoverable charges are expenses initially borne by the landlord, but which are subsequently reimbursed by the tenant. So, as a landlord, you can recover from the tenant certain charges relating to services provided for the use of the property, such as elevator charges, cold water, maintenance of common areas, etc.
It's important to distinguish between 2 types of charges:
- Charges recoverable from the tenant: For example, water used by the person in charge of cleaning the building's common areas.
- Non-recoverable charges: work carried out on the condominium (facade restoration, roof replacement, etc.).
There are two main ways of paying recoverable charges:
Payment by provision with annual adjustment:
- Provisions for charges are based on the provisional budget and the building's previous results.
- At least once a year, charges are adjusted by comparing the provisions received with the actual expenses incurred during the year.
- Proof of charges and expenses must be provided at the time of regularization.
- The amount of the lump-sum payment must be clearly stated in the lease.
- It must not be manifestly disproportionate to the charges applied to the previous tenant.
- The lump-sum payment may not give rise to an additional payment or a subsequent adjustment.
- Its amount may be revised each year, under the same conditions as the main rent.
- The lump-sum is paid at the same time as the rent, according to the periodicity stipulated in the lease.
List of recoverable charges :
Decree no. 87-713 of August 26, 1987 lists recoverable charges. Here are a few examples of charge categories:
Elevators and goods elevators: including electricity, operating costs, routine maintenance and minor repairs. Cold water, hot water and collective heating: covering expenditure on water, electricity, fuel or energy supply, as well as operating costs, routine maintenance and minor repairs.
Individual installations: for heating, hot water production and water distribution in private areas, including expenses for common fuel supply, operation, routine maintenance and minor repairs.
Common interior and exterior areas: including electricity, consumables, cleaning, etc.
Exterior areas: including electricity, gasoline, consumables, cleaning maintenance, etc.
Hygiene: covering expenditure on consumables, maintenance of cesspits, waste conditioning equipment, etc.
Miscellaneous building equipment: including energy supply for mechanical ventilation, operation and routine maintenance of equipment, etc.
Taxes and fees: including leasehold tax, household waste collection tax or fee, sweeping tax, etc.
Some key documents:
- Decree n°87-713 of August 26, 1987: This decree lists in detail the various categories of recoverable service charges. It contains the complete list of charges applicable to your property.
- Regularization of service charges: Each year, when the service charges are regularized, you must provide tenants with detailed proof of the actual expenses incurred for their property. These documents should include a list of recoverable expenses and the corresponding amounts.
- Service calls: If your property is located in a condominium, the condominium manager usually sends regular service calls to the owners. These statements detail the amounts and categories of recoverable charges for the entire building, including your specific property.
- Co-ownership documents: Co-ownership documents such as the co-ownership regulations and the provisional budget may also contain information on recoverable charges specific to your co-ownership. You can consult these documents for further details on the amounts and list of charges.