What is the function of the estimated budget of a condominium? – Boursorama

In place since 2002, the projected budget ended up back in the habits of the general assemblies of condominiums. For this reason, we tend to forget its function, while it has a leading role to avoid financial excesses practiced by some trustees

Estimated budget condominium

Paying the right price

For the smooth running of a condominium, maintenance costs, operation and administration are essential. It is the trustee to ensure the financing of these costs, with a budget that allocates the general meeting.
However, until 2002, the trustee of a condominium at leisure could increase the price of these costs (through fundraising): the general meeting was then informed that the next meeting, held most of the time several months later, that is to say after all the costs have been incurred.
Thus, being made compulsory, the General Assembly has a weapon that allows him to pay a price that was set and passed by itself. Note that the budget estimate includes not a specific amount, but a ceiling not to be exceeded.
From this budget, which is fixed, the trustee can calculate how much money will be devoted to each type of expense. On the side of the general meeting, the reflex to forecast costs in advance can reduce the risk of unexpected.
Finally, a case of overpayment (if all was not used), it can either be returned to the owners or be used for the following year.

What should appear in a budget

The estimated budget is prepared by the trustee himself. It is proposed annually to the General Assembly.
To be relevant, it must contain the sums of the three kinds of current expenditure for the smooth running of a condominium, namely:

• – maintenance costs: these are the of routine maintenance work, which will ensure that the equipment remains in good condition. We add the repairs, when they are not too large, and the replacement of common equipment (elevator, for example)
• – Operating expenses: they relate to food community services. A boiler, for example.
• – administration costs: the costs of record are the perfect illustration

Conversely, certain costs are excluded

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Excluded are:

• – the most important work, or if they relate to the installation of new equipment;
• – technical studies (diagnoses) .

Tips and Tricks

If you have to pass a budget, the experience should teach you how to manage it. At your own pace, try to learn to handle unforeseen emergencies, and to estimate the needs of the condominium with just.