Post by mdshamiul777 on Feb 12, 2024 3:52:53 GMT -5
When calculating the administration fee for a condominium, different factors must be taken into account. And although Law 675 of 2001 does not refer beyond the coefficient to make the calculation, the reality is different. The board and administration should make efforts to adjust the dues. The goal is to reach a figure that can keep the property in good condition, but accessible enough to avoid delinquencies . The annual budget, then, must be in accordance with factors that go beyond the boundaries of the property. As which? Like inflation, the CPI or even the exchange rate. If you are interested in knowing more, keep reading. 1. Inflation Inflation is a key factor in the value of the administration fee increase. This imbalance in the country's economy causes losses in purchasing power. Suppose that a certain amount of money was established in the annual budget for some repair. With inflation, surely at the time of execution the amount has changed and the need for an extra fee is created.
And although it may seem like a simple procedure, requesting a meeting of owners for approval can also take time. Consequence? Delayed work. For these types of cases, it is important to take inflation projections into account when calculating the annual budget. This will give a clearer picture and a budget figure that is more in line with reality. But inevitably also an increase in the administration fee, understanding Vietnam Email List the country's inflationary processes. 2. CPI The CPI influences the administration fee Photo by Freepik . CC0 license. The CPI (Consumer Price Index) is fundamental in general for planning the finances of the condominium. As we mentioned before, although it is not established in Law 675 to take this index, in practice it allows for better projections. The budget for a condominium must include the payment of services and supplies. The CPI is constantly updated to understand how the markets behave and can serve as a basis. It is for this reason that it is one of the factors that influence the value of the increase in the administration fee.
The CPI is also closely related to inflation figures. It is logical then to take both indices into account. 3. High value of inputs and services Inflation causes companies that provide services or supplies to adjust their prices to make a profit. This directly influences the functioning of a horizontal property. Let's take the example of services such as surveillance. Companies that provide this service must pay salaries, taxes and other expenses . All this will be reflected in your invoice and, consequently, in the administration fee . The same thing happens with inputs. Keeping the condo clean requires the use of cleaning products. What happens if these inputs increase in cost due to inflation? It will inevitably impact the administration fee . 4. Exchange rate Administration fee depends on exchange rate Photo by Freepik . CC0 license. The exchange rate is another factor that affects the value of the increase in the administration fee. And what happens with legal tender, compared to one with greater global influence, also affects prices and costs. Inflation and the exchange rate are closely related. The result is increased costs and prices.
And although it may seem like a simple procedure, requesting a meeting of owners for approval can also take time. Consequence? Delayed work. For these types of cases, it is important to take inflation projections into account when calculating the annual budget. This will give a clearer picture and a budget figure that is more in line with reality. But inevitably also an increase in the administration fee, understanding Vietnam Email List the country's inflationary processes. 2. CPI The CPI influences the administration fee Photo by Freepik . CC0 license. The CPI (Consumer Price Index) is fundamental in general for planning the finances of the condominium. As we mentioned before, although it is not established in Law 675 to take this index, in practice it allows for better projections. The budget for a condominium must include the payment of services and supplies. The CPI is constantly updated to understand how the markets behave and can serve as a basis. It is for this reason that it is one of the factors that influence the value of the increase in the administration fee.
The CPI is also closely related to inflation figures. It is logical then to take both indices into account. 3. High value of inputs and services Inflation causes companies that provide services or supplies to adjust their prices to make a profit. This directly influences the functioning of a horizontal property. Let's take the example of services such as surveillance. Companies that provide this service must pay salaries, taxes and other expenses . All this will be reflected in your invoice and, consequently, in the administration fee . The same thing happens with inputs. Keeping the condo clean requires the use of cleaning products. What happens if these inputs increase in cost due to inflation? It will inevitably impact the administration fee . 4. Exchange rate Administration fee depends on exchange rate Photo by Freepik . CC0 license. The exchange rate is another factor that affects the value of the increase in the administration fee. And what happens with legal tender, compared to one with greater global influence, also affects prices and costs. Inflation and the exchange rate are closely related. The result is increased costs and prices.