Are Dues Increases Legal? Can the Manager Raise Dues Without Limit?

Who Determines the Dues?

The authority to determine the amount and increase of the dues does not belong to the manager but to the board of unit owners. The manager implements the operating project and the dues amount approved by the board; the manager cannot unilaterally declare, "This month the dues have gone up by so much." For this reason, the complaint that "the manager raised the dues arbitrarily" often points to a procedural error.

Is There an Upper Limit on Dues Increases?

Unlike in rent increases, there is no legal ceiling rate (e.g., a Consumer Price Index cap) for dues. Dues are determined according to the actual expenses of the building; if expenses have increased by a certain amount, dues may also increase by that amount. However, this does not mean "raised as much as desired." The increase must have a concrete justification — that is, an operating project based on actual expense increases. We explained how to prepare this justification in our operating project guide.

How Does an Increase Become Legal?

For a dues increase to be considered legal, the following steps are required:

• Preparation of an operating project (budget) based on actual expense increases
• Presentation of this project to the board of unit owners
• Approval of the project by the board with the required majority and its entry in the decision book
• Announcement of the new dues to all owners

When these steps are skipped, the increase is procedurally defective, and an objecting owner may have the decision annulled by the court. We covered the process of objecting to a board decision in our decision annulment article.

What If an Owner Does Not Agree with the Increase?

An increase decision taken in accordance with proper procedure binds owners who voted against or did not attend the meeting. That is, saying, "I do not accept it," alone does not give the right to not pay the dues. If the owner intends to legally oppose the decision, they must file an annulment lawsuit within the deadline; otherwise, they are obligated to pay the new dues.

Transparency Prevents Disputes

Most objections to dues increases arise from a failure to understand the justification. When expenses are shared transparently, the question "why did it go up?" is answered naturally. In management where income-and-expense reports are regularly shared with residents, increases create far less controversy.

Common Mistakes

• The manager raising dues alone: An increase made without a board decision is invalid.
• Increase without justification: A raise not based on an operating project is open to objection.
• Not announcing: An increase not communicated to residents creates mistrust.

This content is for informational purposes. The dues increase varies according to your management plan and board decision; obtain legal opinion if necessary.