How much does condominium management cost in Portugal?

There is no set price for condominium management. The fee varies from building to building, because the work varies too: it depends on the number of units, the equipment that needs looking after, the type of building, the number of owners' meetings and the services included. Two buildings with the same number of units can receive proposals with very different prices. So rather than looking for a benchmark figure, it is more useful to understand what drives the price and what is included, and that is what this article helps you compare.

What makes the price vary

Number of units

Part of the management work is fixed, whether the building has 6 units or 60: preparing the owners' meeting, drawing up the budget, presenting the accounts, managing the insurance. That is why small buildings usually pay more per unit, and many companies charge a monthly minimum. In large buildings, the cost per unit tends to fall.

Equipment and technical complexity

Each piece of equipment adds contracts, inspections and incidents to follow up:

• lifts, with a maintenance contract and periodic inspections;
• garage, automatic gates, ventilation and fire detection;
• swimming pools, gardens or other common areas with their own maintenance;
• pumping systems, pressure booster sets or air-conditioning equipment.

Type of building

A mixed-use building, with shops or offices on the ground floor, usually has more complex rules for splitting expenses and more parties to deal with. A commercial building may have its own invoicing and reporting requirements.

Meetings and attendance

Ask how many owners' meetings a year are included. The ordinary meeting is mandatory (Article 1431 of the Civil Code), but extraordinary meetings are often charged separately, especially if they are held outside office hours.

Services included or charged as extras

This is where two proposals with the same price per unit can be very different.

Most common charging models

Model	How it works	What to watch
Per unit/month	Unit price multiplied by the number of units	Check whether there is a monthly minimum and whether garages or storage rooms count as units
Monthly flat fee	Fixed amount for the building	More predictable; check what falls outside the flat fee
Base + extras	Base fee plus a price list for additional services	Ask for the full price list in writing

Under any model, the administrator's fees are approved by the owners' meeting, which is also who elects them (Article 1435 of the Civil Code). The fees are part of the shared expenses and go into the annual budget.

What to compare between proposals

A low price can hide a minimal service. Compare proposals side by side with these questions:

Topic	Question to ask
Financial management	How and how often are the accounts presented? Do owners have online access?
Collection	What happens when an owner stops paying? Is legal collection included?
Maintenance	Is there a preventive maintenance plan, or do they only react to faults?
Suppliers	Who selects and supervises suppliers? Are contracts renegotiated?
Works	How are extraordinary works overseen, and what does it cost?
Insurance and claims	Who reports and follows up claims with the insurer?
Communication	Through which channels do owners contact the management?
Contract	What is the term, the renewal and the notice period to end it?

Remember that the law already gives the administrator a set of duties, such as preparing the budget, collecting income, accounting to the owners' meeting and, for extraordinary maintenance works or improvements (inovações), presenting at least three quotes from different sources (Article 1436 of the Civil Code). These duties should not appear in a proposal as extras. For a fuller picture, see what a condominium administrator really does.

Hidden costs to ask about

Before accepting a proposal, ask for written answers on these points:

• Extraordinary meetings: how many are included and how much each additional one costs.
• Post: notices of meeting sent by registered letter have a cost. Who pays it?
• Statement of charges when a unit is sold: the administrator must issue it within 10 days at most (Article 1424-A of the Civil Code). Ask whether it is charged for, and to whom.
• Debt collection: costs of letters, payment order procedures (injunção) or enforcement proceedings, and lawyer's or solicitor's fees.
• Supervision of works: whether it is charged separately and how it is calculated.
• Claims handling: whether it is included or invoiced per claim.
• Travel, copies and archiving.
• VAT: whether the quoted price already includes it.
• Annual update: how and when the price is updated.

Cheap can turn out expensive

The management fee is only one line of the condominium budget, alongside maintenance, insurance and energy. A management company that negotiates contracts well, plans maintenance and collects unpaid fees on time can save the condominium more than the difference in fees. In the article on how to reduce maintenance costs in a condominium we show where those savings are.

If you are comparing proposals because you want to switch company, see also how to change condominium management.

Request a proposal from Condgest

Condgest handles the financial, technical and administrative management of residential, commercial and mixed-use buildings in Lisbon, Cascais and Montijo, with clear financial reports and an owners' portal. See our pricing page or request a proposal for your building.