ES🧉 Neighborhood guide
How to read your expensas statement, line by line
The statement you get every month looks like it was written for accountants, but it actually tells a simple story: money that came in, money that went out, money that's left.
The expensas statement is the account your building manager presents each month: how much was collected (income), what it was spent on (expenses), and what's left (balance). To read it, split it into three parts: first the income, then the expenses grouped by category, and finally your debt or credit balance. If an item isn't clear at first glance, the manager is obligated to explain it.
1. Income: the money that came in
This shows what the homeowners' association (consorcio) collected during the month: the expensas neighbors paid (ordinary and extraordinary listed separately), interest charged to late payers, and any other income (renting out a common space, for example).
2. Expenses: the money that went out
This is the longest and most confusing part. Expenses are usually grouped into categories. The most common ones:
- Salaries and payroll taxes: the superintendent's salary, plus contributions and workers' compensation insurance (ART). It's usually one of the biggest categories.
- Security: guards or a private security company. In many buildings it's the highest category of all, even above the superintendent's salary.
- Management fees: what the property manager charges for running the building.
- Utilities: electricity, water, and gas for the common areas.
- Maintenance: elevators, water pumps, intercoms, cleaning.
- Insurance: the building's insurance (it's mandatory).
- Reserve fund: a portion set aside for emergencies or major repairs. It's not money down the drain: it's your cushion.
- Extraordinary expenses: works or improvements approved by the owners' assembly (facade repairs, waterproofing, etc.).
3. The balance: the money that's left
Income minus expenses. If the balance keeps shrinking month after month, the association is eating into its reserves, and increases or an extraordinary assessment are likely on the way.
4. Your personal account
At the end of the statement (or on a separate page) you'll find your own situation: what you owe this month according to your coefficient, what you owe from previous months, and any interest.
What to scrutinize (red flags)
- Sudden jumps from one month to the next: ask for the reason in writing.
- Vague items like "miscellaneous" or "general expenses" with no detail: you have the right to know what the money was spent on.
- Extraordinary expenses with no assembly vote approving them: major works need the owners' vote.
- The reserve fund at zero or negative: the building has no cushion for emergencies.
Legal backing
The Código Civil y Comercial (Civil and Commercial Code, art. 2067) requires the building manager to prepare the expensas account, collect the funds, and render accounts. Rendering accounts doesn't mean sending an incomprehensible piece of paper: it means reporting in a way owners can actually audit. Also, art. 2048 states that each owner contributes to the upkeep of the common parts.
Frequently asked questions
Does the manager have to explain the statement to me?
Yes. The duty to render accounts means reporting clearly and giving access to the supporting documentation.
Can I ask for receipts for an expense?
Yes. You have the right to free access to the association's documentation.
What do I do if the statement is incomprehensible?
Ask in writing (email or note) for a breakdown of the confusing items. If they don't respond, it's a matter for the next owners' assembly.