Within residential complexes, improvement works are essential to maintaining a high standard of living. They help improve and repair common areas, services, and all types of facilities. However, the payment for these renovations does not fall on a single person, but on the entire community of residents that forms part of the building.
To help you understand the importance of these reforms and how they are financially managed, we'll explain everything here.
Improvement works: what are they?
Also known as luxury projects, these projects aim to improve the communal spaces of a community. These projects are essential for maintaining a decent quality of life for all residents, ensuring that no essential services are lacking. This is especially true because improvement projects also extend to the repair or replacement of key systems in a building.
Generally, these types of projects are not necessary for residents' daily lives, but they can be proposed to improve comfort. Therefore, they require the approval of the owners through a vote to coordinate budget planning and implementation.
Key differences from conservation works
Learning to distinguish between improvement works and conservation works is key for all residential communities. Especially because, although they serve similar purposes, they operate differently. Therefore, it's important to understand their differences to determine the situations in which they are necessary:
- Conservation works are essential within a building, so any owner can request them, while this is not the case with improvement works.
- Unlike improvement works, conservation renovations are mandatory, even when some neighbors disagree.
- Conservation projects only require a simple majority vote, while improvement projects require a three-fifth majority of the votes.
- Payment for improvements is not mandatory, so residents are not required to contribute to their completion.
- Improvement renewal is regulated by Article 17.4 of the LPH, unlike conservation renewals, which are governed by Article 10.
Examples of improvement works in the neighborhood community
There are many examples of improvement projects that can serve as a guide to understanding the nature of these renovations. For example, the installation of elevators, automatic doors, security systems, or heating systems in the building. Each of these improvements serves the purpose of improving the quality of life for all residents, although they cannot be considered essential by the owners.
Cosmetic restorations or the integration of renewable energy sources can also be considered improvement projects. Particularly because they enhance the appearance of the community and improve comfort, without being necessary for living comfortably in the residential complex.
Although these examples of improvement projects aren't crucial within a residential community, many are recommended, specifically for the benefits they generate in terms of living standards and their positive impact on the building's value.
Regulations for improvement works
Regulations applicable to neighborhood communities
To carry out this type of work in a residential complex, it is necessary to comply with the corresponding regulations for approval. As with maintenance work, these are mandatory for all residential communities.
- They require a majority vote of three-fifths of the owners to be approved.
- If the works cost more than three ordinary monthly payments of common expenses, the neighbors who voted against them are not obligated to pay for them.
- Should any neighbor decide to participate in the future, they will be required to pay updated fees for the completion and maintenance of the improvement works.
- Owners who were absent during the voting process have the right to challenge the voting result.
- Expert appraisals may be requested to determine whether a work is considered an improvement or conservation project.
Who should bear the costs of improvement works in communities?
The costs of the improvements must be borne by the homeowners' association, including those who voted against them. However, when the budget for the improvements exceeds the three regular monthly installments of common expenses, these can be excluded from the payment. In these cases, it is advisable to communicate the dissenting opinion in advance to facilitate cost sharing.
On the other hand, if the residents who voted against the improvement works wish to benefit from them in the future, they have the right to do so. To do so, they will only have to pay the updated construction and maintenance fees.
Impact of improvement works on real estate value
Short and long-term benefits
- They have a positive impact on the property's value within the real estate market, should a resident decide to sell.
- They increase interest in the residential complex, making it easier to sell an apartment at a good price.
- They improve the quality of life and offer daily conveniences for all residents of a community.
- They foster positive relationships between neighbors, creating a sense of community and a friendlier environment.
- Optimize space to provide greater comfort to all residents during their daily routines.
Practical cases and experiences in neighborhood communities
Improvement projects are common in virtually all residential complexes in Spain, especially due to the benefits they offer both in terms of living standards and property values. For this reason, it's easy to find practical examples in communities in Mallorca and other regions of the Balearic archipelago.
Multiple studies have shown that these projects have a positive impact on neighbor relations. This is especially true when they are coordinated in a friendly manner with agreements that benefit all residents.
However, there are also negative cases where a lack of communication can affect the morale of the community as a whole. For this reason, it's necessary to include all owners to reach a positive agreement that doesn't harm anyone.
At Tecnic Project we are specialists in community renovations in Mallorca.
Carrying out improvement works is essential for the maintenance and restoration of any property. Especially when the entire community approves these renovations to raise living standards.
Here at Tecnic Project, we specialize in home renovations in Mallorca and have a team of professionals specialized in this type of project, both improvements and maintenance. Contact us or make an appointment for advice and a customized quote .
