Understanding Condo Dues and Monthly Fees in the Philippines (2025 Guide)

Introduction

Buying or renting a condominium in the Philippines offers convenience, security, and access to amenities. However, many new condo owners or expat tenants are surprised by the monthly costs that come along with their units: condo dues and monthly fees.

Understanding how these fees are calculated, what they cover, and how to manage or contest them is essential for anyone living in a Philippine condominium. This guide aims to provide a comprehensive breakdown of condo dues and monthly fees so you can plan your budget—and avoid costly surprises.

1. What Are Condo Dues?

Condo dues are regular payments collected from condominium unit owners or tenants to fund the building’s operating expenses. These are mandated by the Condominium Corporation, which manages the building on behalf of all unit owners.

In most developments, these fees are collected monthly and are mandatory.

2. What Do Condo Dues Cover?

3. How Are Condo Dues Calculated?

Condo dues are usually based on your unit’s floor area (in square meters). The standard formula is:

CondoDues = monthlyRatePerSqm * unitSizeSqm;

Example:

• Monthly dues rate: PHP 100/sqm

• Unit size: 40 sqm

• Monthly dues = PHP 4,000

Rates can vary from PHP 50/sqm to PHP 150/sqm depending on the building’s location, quality, and management.

4. Are Dues Different for Tenants and Owners?

Yes and no. Technically, the unit owner is responsible for paying condo dues. However:

• If you’re a tenant, some lease agreements require you to shoulder the dues.

• In short-term rentals (Airbnb), the owner usually absorbs the cost but factors it into rent.

Always clarify this responsibility in your lease contract.

5. What is a Sinking Fund?

The sinking fund is a reserve fund used for:

• Major capital repairs (e.g., repainting exteriors)

• Roof replacement

• Elevator overhaul

• Renovation of common areas

It is typically 5–10% of your monthly dues, charged separately or already included.

Some buildings collect this quarterly or annually.

6. What Are Other Possible Monthly Fees?

In addition to condo dues, you might pay for:

7. Can Dues Increase Over Time?

Yes. Condo corporations have the right to adjust dues based on:

• Inflation

• Rising utility costs

• More staff or security needs

• Unexpected repairs

Increases must be approved by the Board of Trustees and may require notice or voting during a General Assembly.

8. Are Dues Mandatory Even if You Don’t Live in the Unit?

Yes. Whether the unit is occupied or not, dues are mandatory. This is because common areas still require upkeep. Failure to pay may result in:

• Penalties and interest

• Legal action

• Blocking access to amenities

• Annotated lien on your unit title

9. Who Governs Condo Dues in the Philippines?

Dues are governed by:

• Republic Act No. 4726 (The Condominium Act)

• The Master Deed

• The building’s Bylaws

• The Condominium Corporation and its Board

10. What Happens If You Don’t Pay Condo Dues?

Consequences may include:

• Interest charges (commonly 2–4% per month)

• Legal notices or demand letters

• Disconnection from amenities (pool, gym, etc.)

• Public posting of delinquent units

• Lawsuits or even forced sale of your unit (worst-case scenario)

Always pay dues on time or negotiate if facing financial hardship.

11. How Can You Lower Your Condo Dues?

• Participate in Homeowners’ Association (HOA) meetings

• Propose cost-saving measures (e.g., solar panels, efficient lighting)

• Reduce amenity overuse

• Monitor management expenses and ask for transparency

12. How Do You Verify If Dues Are Fair?

Request a copy of:

• The annual financial report

• The breakdown of monthly expenditures

• The budget for the year

Condo owners can demand transparency from the administration, especially during the General Assembly or elections.

13. What Should You Ask Before Buying a Condo?

• “How much are the current dues per sqm?”

• “Are there any plans to increase dues?”

• “How much is the sinking fund?”

• “Are there any pending special assessments or repairs?”

• “What are the penalties for late payment?”

14. What Are Special Assessments?

Special assessments are one-time fees collected when:

• There’s a major repair not covered by the sinking fund

• Emergency maintenance is needed

• Legal or government-mandated upgrades are required

️ Example: If the elevator breaks and there’s no budget, all owners might be asked to contribute PHP 10,000–20,000 each.

15. Dues Comparison by Location (2025 Estimates)

16. Tips for Expats and OFWs

• Get an English copy of all HOA rules and dues breakdown.

• Assign a local representative if you live abroad.

• Use auto-debit arrangements to avoid late fees.

• Clarify responsibilities with tenants if leasing out your unit.

17. Red Flags to Watch Out For

• No clear accounting of dues

• Sudden large increases without warning

• Managers refusing to provide financial statements

• Dirty or poorly maintained common areas despite high dues

These may indicate mismanagement or even fraud.

18. What Is the Role of the Condo Corporation?

• Oversees dues collection and budget allocation

• Holds the bank account for operational funds

• Schedules General Assembly meetings

• Votes on dues adjustments

• Prepares financial reports and audits

19. Can Tenants Vote on Fee Issues?

No. Only registered unit owners can vote or participate in board elections and financial decisions, including dues matters.

20. Final Thoughts

Understanding your monthly condo dues is just as important as knowing your unit price. These recurring costs can significantly affect your long-term budget and living experience.

Always read your condominium bylaws, ask for full financial transparency, and actively participate in community decisions.

✅ Summary Checklist

✅ Ask about dues before buying or renting
✅ Know what’s included (and not)
✅ Check the rate per sqm and computation
✅ Request sinking fund and annual report
✅ Pay on time to avoid penalties
✅ Join the HOA or Condo Corp if you’re an owner