Current Q&A about the maintenance fee in Bulgaria in connection with the pandemic

Because of the coronavirus pandemic, closed borders and cancelled flights, in 2020 not all foreign owners of Bulgarian property were able to travel to Bulgaria and holiday in their apartments, and not everyone paid the maintenance fee. Questions about whether it is possible to reduce the service fee at a complex or not pay it at all, and how to pay the charge remotely, have become some of the most frequently asked among foreign owners of Bulgarian property.  

We will now answer the most pressing questions related to paying the maintenance fee for property in Bulgaria.

The maintenance fee is a mandatory payment made by property owners for the servicing of common areas: swimming pools, children's and sports grounds located on the grounds of residential complexes.  The charge is paid annually in an amount determined by the management company. 

Is it possible to refuse to pay the service fee?

The answer to the question of whether you can avoid paying the charge depends on the circumstances. 

You are the owner of an apartment, townhouse or villa in a residential complex. There is a common area, swimming pools, a park zone, playgrounds for children, swings, sports equipment. The lifts are running. Repairs and servicing of the building, wiring and plumbing are carried out. There is external and internal lighting. 

To keep the complex in good condition, so that you enjoy living here and spending your holidays, a maintenance fee is paid. Payment is made on the basis of a contract with the management company. 

In this case payment is mandatory. Refusing to pay means breaching the terms of the service contract. The management company has the right to recover a penalty from you, terminate the contract, and refuse to provide services in the future. 

Owners of flats in residential buildings have the option not to pay for a number of services. They are not bound by a contract, and the question of payment while living there is a matter of decency, of a desire to live in a beautiful, clean building, and of maintaining good relations with the neighbours. 

Do I need to pay the maintenance fee if I do not live in my apartment?

The service payment specified in the contract is paid regularly. If, because of the pandemic, you cannot travel and use your property, the swimming pool or other services, you will still have to pay.

The reason is that the grounds continue to be maintained. It is unlikely that next year you would want to arrive and see that the pool is dirty, your favourite garden is overgrown, weeds are growing on the flowerbeds instead of flowers, and the swings and sandpits on the playground are broken. 

Many people dispute this position, arguing that the COVID-19 situation is force majeure. But in Bulgaria a state of emergency was declared for only two months. In Russia and in many other countries a state of emergency was not introduced at all. Therefore there are no grounds for refusing to pay. 

Another nuance is that many people cannot travel from Russia or Kazakhstan. This does not prevent them from renting out their property in Bulgaria, and tenants make use of the swimming pools, sports equipment, parking and other services.

Can the service charge be reduced if I did not come this year?

The management company determines the amount of the payment based on the services provided. 
Sometimes management companies compromise and agree to reduce the fee to reflect the fact that you are not using the pool. In that case you must pay the full amount for the remaining services. 

Reducing the fee is not possible if you rent out the apartment and your tenants want to use the pool.

In most complexes it is not possible to have the charge reduced, even citing the pandemic and the inability to travel.

I am not happy with the maintenance fee at all — can it be reduced?

Regardless of the pandemic or any emergency circumstances, a fundamental reduction of the service charge can be achieved. This is possible if a meeting of property owners is held and a new management company is chosen.

A wave of such events swept through Sunny Beach in 2018-2019 and jokingly became known as the «Russian revolution». Russian-speaking apartment owners initiated new elections and changes to the sum being paid. 

It is harder to have the fee reduced if:

• There is a management company and the fee is stipulated in the notarial deed.
• The manager is the owner of the land on which the complex is built.
• Only a small proportion of apartment owners are in favour of changes. 

The need to pay the maintenance fee at a time when you cannot travel to Bulgaria and use the services you are paying for seems unfair. But this money goes towards the upkeep and care of the grounds, i.e. so that you can live and holiday in good conditions. That is why avoiding payment will not work. The possibility of reducing the amount also appears unlikely.

Can the fee be paid remotely?    

Most management companies are legal entities with bank accounts. Payment can be made remotely, through a bank. The problem is that for this you need to have a foreign-currency account. 

If you do not, you can do the following:

• Discuss deferring the payment with the management company until the next time you can travel to the country.
• Pay for the services via Western Union or Zolotaya Korona.
• Transfer money in roubles to trusted acquaintances so that they can convert it and make the payment in leva.