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Guides · 2026-08-23

How to Calculate Service Fees per Unit in an Owners Association

Service fees are not split equally between apartments. The legal rule is that an owner contributes to shared-area costs in proportion to the area of the partitioned unit they own relative to the total area.

And the amount is not set by the manager or the board alone: setting the subscription amount and how it is paid falls to the general assembly. This guide shows how to reach a number you can defend in front of owners.

The rule: proportion, not equal shares

Many associations start by dividing the cost by the number of units because it is easiest. It contradicts the stated rule and is a recurring source of disputes — the owner of the smallest apartment sees themselves subsidising everyone else, and they are right.

The calculation in practice

Working out any unit's share takes three steps, with no guesswork required:

  • Total the expected annual cost of operating and maintaining the shared areas.
  • Work out the unit's area as a proportion of the total area of partitioned units in the property.
  • Multiply the annual cost by that proportion, then spread it across the payment cycles the general assembly approved.

The result is the unit's share. When areas come from title deeds rather than estimates, any owner can verify the figure without argument.

What belongs in the cost base

The common mistake is counting only visible maintenance contracts, then discovering a shortfall mid-year. The items most often forgotten:

  • Scheduled maintenance contracts for critical assets such as lifts, pumps and HVAC systems.
  • Shared consumption: corridor and car-park lighting, and water for shared areas.
  • Recurring services such as cleaning, security and pest control.
  • Emergency work you cannot schedule but can certainly expect.
  • Renewing or replacing an asset nearing the end of its service life.

The reserve amount

The executive regulation allows the general assembly to decide on forming a reserve amount to meet costs exceeding the association's approved budget.

A reserve approved by the general assembly means a major failure does not turn into a surprise mid-year demand on owners. Its absence is the first reason associations run into financial trouble.

Who approves the number?

The general assembly. It sets the subscription amount and payment methods and approves the spending rules. The manager collects owner subscriptions and the association's other lawful revenues, and spends from the approved budget.

Why collection stalls even when the number is right

Because owners pay more readily when they can see a documented return. An association that can show what was done on shared assets, what was assigned to contractors, and what resident requests were closed is discussing data rather than impressions.

In MRFQ, work orders are linked to the asset they were performed on and to the contractor responsible, so the report on where the money went is an output of the operating record rather than something assembled before each meeting.

The rules on cost sharing and subscriptions are published in the Real Estate Unit Ownership, Partitioning and Management Law and its executive regulation at the General Real Estate Authority.

To see spending on assets become a report ready to show owners, book a demo with the MRFQ team.

Frequently asked questions

Are service fees split equally between apartments?

No. The legal rule is that an owner contributes to shared-area costs in proportion to the area of the partitioned unit they own relative to the total area, so a larger unit carries a larger share.

Who approves the service fee amount?

The general assembly. Setting the subscription amount and payment methods is its competence, while the manager handles collection and spending from the approved budget.

What is the reserve amount, and is it mandatory?

The executive regulation allows the general assembly to decide on forming a reserve amount to meet costs exceeding the association's approved budget. It is therefore a decision the general assembly takes.

What if an owner refuses to pay?

Start with documentation: an amount calculated on the area rule, approved by the general assembly, and a spending record showing what was delivered for it. Documentation underpins any later claim, and it also persuades most non-payers before escalation.