Property Management Company: Legal Obligations and Fees 2026

The property management company is the central player in managing a jointly-owned building. Appointed by the general meeting of apartment owners, it assumes legal, administrative, financial and technical responsibilities governed by the Act of 10 July 1965 and its implementing decree of 17 March 1967. Understanding its obligations and the structure of its fees allows apartment owners to better control the management of their real estate assets and avoid the budgetary overruns frequently observed in collective buildings.

The legal obligations of the property management company

The property management company is required to implement the decisions of the general meeting and administer the building in accordance with the co-ownership regulations. Its mandatory duties, strengthened by the ALUR Act of 24 March 2014, include:

• Maintenance of the building maintenance record (article L.721-1 of the French Construction and Housing Code), a mandatory document recording work carried out and current maintenance contracts.

• Opening of a separate bank account in the name of the co-owners' syndicate (ALUR Act), unless an exemption is voted at the general meeting for small co-ownerships of fewer than 16 units.

• Provision of a secure online portal allowing apartment owners to consult co-ownership documents (ELAN Act 2018).

• Annual convocation of the general meeting within six months following the end of the financial year.

• Subscription to professional civil liability insurance and maintenance of a financial guarantee.

The property management company must also register the co-ownership in the national register held by ANAH, an obligation established by the ALUR Act to improve transparency in the French property sector.

The structure of property management fees

Since the decree of 26 March 2015, property management company fees are governed by a standard contract which clearly distinguishes two categories of services:

The annual flat fee covers routine tasks: accounting, administrative management, annual general meeting convocation, online portal management, fund collection notices, etc. This fee generally ranges between €150 and €300 per unit per year depending on the size of the building and the region.

Additional services are subject to separate billing: organisation of extraordinary general meetings, claims management, supervision of major works, provision of documents for a property transfer (dated statement charged at a maximum of €380 inclusive of VAT according to the 2020 decree), contentious debt recovery, etc.

Apartment owners must be vigilant about excessive fees: any service not included in the flat fee must be explicitly listed in the contract to be chargeable.

Oversight of the property management company by apartment owners

The syndicate council, elected by the general meeting, plays a decisive role in overseeing the property management company. It examines the accounts, reviews quotations and can request communication of any document relating to management. In the event of serious breach, the general meeting may revoke the property management company by absolute majority (article 25 of the 1965 Act) and engage its civil or even criminal liability for breach of trust or misappropriation of funds.

Competitive tendering every three years, established by the ALUR Act, also allows for regular challenges to fees and service quality.