What Is an Apartment Administrative Fee?

An apartment administrative fee is a payment received from the tenants or flat owners living in the residence to meet the expenses and maintenance of the common areas, especially in the apartments and estates, which is called the dues. The tenants or flat owners living in the residence are responsible for paying the monthly fee on the date determined by the apartment management.

According to Article 20 of the Condominium Ownership Law, which expresses the legal criteria regarding the dues payments, provided that there is an agreement stating the contrary; concierge, gardener, watchman, and heater payments; must contribute to the insurance premiums of the apartment, maintenance, reinforcement, protection and repair expenses of all common areas, as well as other expenses up to the manager’s pension, in proportion to the land share.

If the landlords, who are obliged to pay the dues, decide to rent the property, they can transfer the dues payment to the tenant, provided that it is stated in the rental agreement.

What does the Apartment Administrative Fee do?

The amount paid by the owners of the house for the maintenance and repair of all common areas owned by the aforementioned house and the fixed expenses paid to the doorman, gardener, and a security guard is called “Dues”. The fee is determined according to the expenses of the flat during the month. The dues are collected periodically by an association, institution, foundation, or apartment manager established by the apartment residents.

If you have decided to buy an apartment for sale, you should also research the dues to be paid in the apartment or site where the apartment you will buy is located. In some regions, the fees for apartments or sites may be above the average. It is known that the subscription fees demanded especially on the sites are higher than in the apartments. For this reason, you must learn the fee to be paid when looking for a house for sale or rental. You must do the necessary research so that the amount to be requested for the facilities such as the parking lot, garden, pool, security, and gym of the house you will move to does not exceed your budget.

How is the Apartment Administrative Fee Determined?

To determine the number of dues to be paid, first of all, the monthly and annual general expenses of the apartments or sites should be calculated. It is possible to express this calculation as the “Business Project” or the estimated budget.

The next step after the Operation Project is calculated is to distribute the site by the distribution method specified in the Management Plan. In this case, the fee is determined by calculating the m2 of the house owned by the owner of the share of the land. When the amount of this calculated fee is expressed in writing to the real estate owners, the fee payment is finalized.

The general definition of dues can be expressed as the distribution of the total expenses of the site to the residents of the site.

1. After the determination of each of the expense items, calculate them monthly and calculate the dues:

After the calculation of each expense item, these expenses are calculated every month and included in the fee calculation.

To put it with an example, for an apartment with 12 flats, this situation is as follows:

          Expenses:                         Monthly Total:

  • Personnel Expenses:   1.000 TL (67,91 USD)
  • Cleaning Expenses:      800 TL (54,32 USD)
  • Security Expenses:       600 TL (40,74 USD)
  • Energy Costs:                 400 TL (27,16 USD)
  • Office Expenses:            200 TL (13,58 USD)

2. Calculation of the annual fee with the annual calculation method, which is realized by determining each of the expense items and then calculating them annually:

Another calculation method is the annual calculation of expense items. This calculation method is as follows:

              Expenses:                      Monthly Total:                  Annual Total:

  • Personnel Expenses:    800 TL (54,45 USD)     –     9.600 TL (653,39 USD)
  • Cleaning Expenses:       700 TL (47,53 USD)      –     8.400 TL (571,71 USD)
  • Security Expenses:        600 TL (40,74 USD)     –    7.200 TL (490,04 USD)
  • Energy Costs:                   200 TL (13,61 USD)    –      2.400 TL (163,35 USD)
  • Office Expenses:             100 TL (6,81 USD)     –      1.200 TL (81,67 USD)
  • Total:                                  400 TL (163,35 USD)     –  28.800 TL (1960,17 USD)

The dues can be calculated according to the number of houses as follows:

In a site that consists of 12 houses and the monthly expenses are 3,000 TL, the calculation of the dues can be carried out practically.

Calculation of Dues = Monthly Total Expenses/Number of Residences= 3.000/12 units= 250 TL/unit

The calculation of land share and wages based on m2 can be done as follows:

Cost items determined by monthly calculation or annual calculation are distributed considering the m² of the residences. With this method, the amount to be paid by each flat as a contribution is found.

To explain with an example,

Housing            M²            Dules Annual Total:        Dules Monthly Total:

Housing 1       100 m²  –  1.440 TL (97,78 USD)    –   120 TL (8,15 USD)

Housing 2       100 m²  –  1.440 TL (97,78 USD)   –    120 TL (8,15 USD)

Housing 3:      100 m²    –  1.440 TL (97,78 USD)   –  120 TL (8,15 USD)

Housing 4:      100 m²   –   1.440 TL (97,78 USD)   –   120 TL (8,15 USD)

Housing 5:      150 m²  –    2.160 TL (146,68 USD)  –  180 TL (12,22 USD)

Housing 6:      150 m²   –   2.160 TL (146,68 USD)  –  180 TL (12,22 USD)

Housing 7:      150 m²    –  2.160 TL (146,68 USD)   – 180 TL (12,22 USD)

Housing 8:      150 m²   –   2.160 TL (146,68 USD)  –  180 TL (12,22 USD)

Housing 9:      200 m²   –  2.880 TL (195,57 USD)  –  240 TL (16,30 USD)

Housing 10:    200 m²  –   2.880 TL (195,57 USD)   –  240 TL (16,30 USD)

Housing 11:    200 m²   –  2.880 TL (195,57 USD)   –  240 TL (16,30 USD)

Housing 12:    400 m²  –   5.760 TL (391,14 USD)  –  480 TL (32,59 USD)

Total:              2.000 m² –  28.800 TL (1955,68 USD) –  2.400 TL (162,97 USD)

Fee Amount = Total m2= 1955,68 USD/2.000 m2= 0,98 USD/m2

It is possible to reach the annual fee amount by multiplying the m² of each flat on the site by 0,98 USD/m2.

When is the Apartment Administrative Paid?

After buying a house, the apartment fee is paid once a month or as an annual payment on the date stated by the manager or apartment owners, All apartment residents are obliged to pay this amount on the specified dates. Even if you do not use the common social living area or facilities of the apartment, you are obliged to pay the apartment fee.

If this fee is not paid, a lawsuit can be filed against the flat owners and enforcement proceedings are initiated. As a result of delays in the dues payments, 5% monthly delay interest must be paid for the delayed period.

Is it Mandatory to Pay Apartment Administrative Fee?

According to the law specified within the scope of the Condominium Ownership Law; whether you are a homeowner or a tenant, you have to pay dues even if you will not live in your flat from the date you own the house.

Is it Mandatory to Pay Apartment Administrative fees in Turkey?

The concept of dues is an obligatory payment in Turkey as in many countries.

Do Tenants Have to Pay Apartment Administrative Fees in Turkey?

As stated in the Condominium Ownership Law, the owners of the apartments or all residences on the site are obliged to pay dues. According to the law, paying the dues is a payment that is the responsibility of the landlord. Within the scope of this law, the landlord is obliged to participate in expenses such as gardener and watchman, manager’s salary, doorman and maintenance, repair, protection, and strengthening of all common places. The landlord is specified in addition to the rent in the rental agreement with which the apartment fee is paid. In this way, the tenant can be requested to pay. In this way, the tenant takes responsibility for paying the apartment fee, which covers the facilities and regular expenses in the apartment.

What is The Difference Between An Application Fee and An Admin Fee?

An application fee is a charge that is often required as part of the process of applying to rent a property. This fee is typically used to cover the cost of processing the application, including checking the applicant’s credit history, employment history, and rental history. A management fee is a charge that is paid to a property manager for the services they provide in managing a rental property. These services can include collecting rent, handling maintenance and repair issues, and interacting with tenants. The management fee is usually a percentage of the monthly rent collected from the property. In summary, an application fee is a one-time charge that is paid by a prospective tenant when applying to rent a property, while a management fee is an ongoing charge that is paid to a property manager for managing the property.

What is the Purpose of an Administrative Fee?

In the real estate sector, an administrative fee is a charge that is assessed by a property management company, landlord, or other entity to cover the costs of managing a property. These fees may be charged to tenants, homeowners, or other parties who are responsible for maintaining the property. Administrative fees may cover a wide range of expenses, including things like advertising, bookkeeping, legal fees, and maintenance. Some administrative fees may be assessed on a flat rate basis, while others may be charged as a percentage of the rent or other fees associated with the property. In general, the purpose of administrative fees is to help cover the costs of managing a property and ensuring that it is well-maintained and in good condition.

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