Sample Operating Budget for an Apartment Building

What Is an Operating Budget?

The operating budget is a management document showing estimated annual income and expenditure and the dues payable by each unit. Under Article 37 of the Condominium Law, where the general assembly has not prepared one, the manager does so.

The document shows that dues were set by calculation rather than arbitrarily. Once properly notified and finalised, the operating budget can be relied on as a basis in enforcement proceedings for unpaid dues.

What the Budget Should Contain

• The period covered (usually one year)
• Estimated expense items: staff, heating, electricity, water, lift maintenance, cleaning, insurance, repair provision
• A provision for unforeseen expenses
• Any income items (interest, advertising revenue, etc.)
• Total expenditure and the monthly figure
• The allocation basis: land shares or the measure set in the management plan
• A table of monthly dues by unit
• Who prepared it and the date

Copyable Operating Budget Sample (Full Text)

……………………… APARTMENT / COMPLEX

OPERATING BUDGET

Period: …/…/20… – …/…/20…

1. ESTIMATED EXPENSES (Annual)

– Staff (wages + social security): ………… TRY
– Heating (fuel / gas): ………… TRY
– Common area electricity: ………… TRY
– Common area water: ………… TRY
– Lift maintenance and periodic inspection: ………… TRY
– Cleaning materials and services: ………… TRY
– Garden maintenance: ………… TRY
– Insurance: ………… TRY
– Repair and maintenance provision: ………… TRY
– Provision for unforeseen expenses: ………… TRY
TOTAL ESTIMATED EXPENDITURE: ………… TRY

2. ESTIMATED INCOME (Annual)

– Balance carried forward: ………… TRY
– Other income: ………… TRY
TOTAL INCOME: ………… TRY

3. AMOUNT TO BE COVERED

Total expenditure – total income = ………… TRY
Monthly amount to be covered = ………… TRY

4. ALLOCATION BASIS

Expenses have been allocated ……………… (in proportion to land shares / equally / by the stated measure) pursuant to clause …… of the management plan.

5. MONTHLY DUES BY UNIT

Unit No …… — Land Share …… — Monthly Dues ………… TRY
Unit No …… — Land Share …… — Monthly Dues ………… TRY
(continues for all units)

6. PAYMENT

Dues are to be paid into account ……………… on the …… day of each month. Unpaid amounts carry late payment compensation of five percent per month under Article 20 of the Condominium Law.

7. NOTIFICATION AND OBJECTION

This operating budget will be notified to the owners and to those making continuous use of a unit, against signature or by registered mail. A written objection may be made within seven days of notification. Upon objection, the budget is reconsidered by the general assembly.

Prepared by: ……………………… Apartment/Complex Management — Manager ……………… (Full Name) — Signature

Date: …/…/20…

Filling Guide

Estimate expense items from the previous year's actuals and add an allowance for inflation. An unrealistically low budget creates the need for extra collections mid-year.

Show provisions for repairs and unforeseen expenses as separate lines. Including them provides a basis for spending later in the year.

State the allocation basis by reference to the management plan. Unless the plan sets a different measure, expenses are allocated in proportion to land shares.

Notification and Objection

The budget is notified to owners and to those making continuous use of a unit, against signature or by registered mail. A written objection may be filed within seven days of notification.

Upon objection the budget is reconsidered by the general assembly. If no objection is made, or an objection is rejected, the budget becomes final and binds all owners.

Common Mistakes

• Not serving notice: a budget that is not notified does not become final and cannot support enforcement.
• Relying on the noticeboard: notification must be against signature or by registered mail.
• Omitting the allocation basis: without stating the measure used, the budget is open to challenge.
• No provisions: without repair and contingency lines, extra collections become necessary during the year.
• Not notifying tenants: those making continuous use of a unit must also be notified.

This content and template are for information only and are examples. Adapt them to your specific situation.