How Is a Dues Increase Made? Is There a Legal Cap?

With the costs rising each year, dues increases also come onto the apartment's agenda. At this point, questions like "can the dues be increased as much as one wants, is there a legal cap, can the manager decide alone?" are asked frequently. In this guide we explain how a dues increase is made and its legal framework from a practical perspective.

Why are dues raised?

Dues are collected to cover the apartment's real expenses. As expenses such as doorkeeper wages, electricity, natural gas, cleaning and maintenance rise with inflation and minimum wage increases, dues must also rise to a level that meets these expenses. A dues increase is therefore mostly not arbitrary but a reflection of rising costs. If expenses rise and dues remain the same, the apartment's treasury goes into deficit.

Is there a legal cap for a dues increase?

This is a very much asked topic. The Condominium Ownership Law does not provide a specific percentage cap like in rent increases. Because dues are based on the apartment's real expenses, dues can rise as much as the expenses rose. However, this does not mean "unlimited arbitrary increase"; the dues increase must be based on real expenses and taken in accordance with the procedure.

Who decides on the dues increase?

The dues amount, and therefore the increase, is, as a rule, within the authority of the assembly of unit owners. The increase is usually determined by discussing and approving the annual operating budget. When the budget for the new period is made, the new dues amount is decided according to the increased expenses. This decision is taken at the assembly meeting and recorded in the minutes.

Can the manager increase dues alone?

As a rule, setting the dues amount is a job for the assembly. However, if there is no assembly-approved operating budget, the manager prepares one without delay and sets the dues/advance amount in it (KMK Art. 37). An objection to this budget can be raised within 7 days and, in case of objection, it is discussed by the assembly. The amount set by the manager is therefore not final either; owners can object and change it in the assembly. The healthiest approach is for the increase to be determined by an assembly decision.

How should a dues increase be made?

A sound dues increase process works as follows:

• Increased expenses and the needs of the coming period are determined.
• A new annual budget (operating budget) is prepared.
• The new dues amount is calculated based on this budget.
• It is discussed and approved at the assembly of unit owners.
• The new amount is notified to the residents and applied.

This transparent process minimises "why was the increase made?" objections.

Presenting the reason for the increase transparently

The most important point in a dues increase is transparency. Instead of telling the residents "dues have gone up by so much", presenting the reason as "because the doorkeeper wage, electricity and natural gas rose by so much, dues rose to this level" increases trust. Clearly sharing the expenses and the budget shows that the increase is not arbitrary but necessary and eases the residents' acceptance.

Summary

A dues increase is a reflection of increased expenses. There is no percentage cap in the Condominium Ownership Law like in rent; dues are based on real expenses. The increase is, as a rule, within the authority of the assembly and is usually set through the operating budget. The amount set by the manager can also be objected to. Presenting the reasons transparently increases trust.

Converting increased expenses into a budget and new dues is complex manually. Apt Yönet transparently manages the process from expense tracking to new dues calculation, providing management and residents with clear budget visibility.

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Frequently Asked Questions

Is there a legal cap on dues increases?

No. There is no percentage ceiling like in rent in the Condominium Ownership Law; dues are set based on real expenses.

Who increases the dues?

As a rule, the assembly of unit owners. The increase is usually set with the approval of the annual operating budget.

Can the manager increase dues alone?

If there is no assembly budget, the manager can set an amount in the operating budget; however, an objection within 7 days can lead to changes by the assembly.

How is the increase accepted?

Presenting the expense reasons transparently, clearly sharing the budget and setting the increase by an assembly decision ease acceptance.

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This content is for general information only and does not constitute legal advice. You are advised to consult a legal expert about your specific situation.