Clarity before engagement

Management service fee and condominium operating expenses

Two separate components. One clear and accountable management structure.

The management service fee pays for the team that manages the whole process.The condominium budget pays for what the building actually uses.

When reviewing a building management proposal in Israel, it is essential to distinguish between two completely different payments.

ALTIT LUXURY's management service fee covers the professional management structure: resident service, collections, enforcement, coordination and oversight. The condominium operating budget is the building's own money, used to pay actual common-property expenses according to its systems, condition and the service level chosen by the owners.

Management service fee

Resident service, billing and collections, enforcement, initial legal handling, vendor management, fault tracking, oversight, budgeting, reporting and support for the owners' committee (Va'ad Bayit).

Condominium operating budget

Caretaker and on-site staff, cleaning, common-area electricity and water, lifts, insurance, repairs, parts, contractors, inspections, building systems and other actual expenses.

What is the management service fee?

It is a fixed monthly fee per apartment, as stated in the proposal and the agreement signed with the condominium.

The fee funds ALTIT LUXURY's professional management operation: our team, service systems, billing and collection process, enforcement function, initial legal handling, vendor management, fault follow-up and reporting to the owners' committee.

It is kept separate from the building's maintenance money. It does not pay electricity bills, cleaners, repairs, spare parts or contractors. It pays for the management work behind every action — from receiving a request to confirming that the work has been completed.

The management structure

What is included in the management service fee?

Resident service and requests

Receiving common-property enquiries
Opening and routing service requests
Following faults through to completion
Keeping a documented service history
Updating residents or the owners' committee when required
Operating the request, notice and document platform
Providing an organized professional contact instead of routing every issue to volunteer committee members

Billing, collections and payment follow-up

Issuing condominium fee charges
Monitoring payments and balances
Identifying arrears
Sending orderly reminders
Contacting owners whose payment remains outstanding
Documenting every collection action
Reporting collection and debt status to the owners' committee

Collection, enforcement and initial legal handling

When standard reminders are not enough, the file moves into a structured collection and enforcement process.

Reviewing the balance and supporting records
Formal contact with the apartment owner
Payment demands and notices
Initial legal handling of persistent non-payment
Preparing the file for further action when required
Firm, respectful follow-up while protecting the condominium's rights

Contractor and vendor management

Sourcing suitable professionals
Obtaining and comparing quotations
Negotiating commercial terms where possible
Coordinating access and defining the scope of work
Following execution
Addressing defects or incomplete work
Checking warranties
Managing and renewing recurring supplier agreements

Maintenance planning, inspections and oversight

Creating routine and preventive maintenance plans
Tracking scheduled servicing and statutory inspections
Coordinating lifts and common building systems
Following fire detection and suppression systems
Coordinating gates, cameras, intercom and access control
Scheduling pest control and recurring services
Management oversight of cleaning, maintenance and service providers
Following repairs through to completion

Budgeting, reporting and transparency

Understanding the property's needs and systems
Mapping fixed costs and building a tailored budget
Tracking income and expenditure
Reviewing supplier invoices and payment requests
Providing the owners' committee with a clear financial picture
Retaining invoices, quotations, contracts and records
Preparing reports according to the service plan
Flagging variances and expected expenses
Supporting forward planning and preventive maintenance

Professional support for the owners' committee

The owners' committee remains the owners' representative and stays involved in important decisions, without having to carry the day-to-day workload alone.

One professional management contact
Decision-making support
Clear data and quotations
Budget and work-plan preparation
Documented decisions and tasks
Regular updates where committee input is needed
A substantial reduction in the committee's operational burden

The building's own funds

What does the condominium operating budget pay for?

Every property has different systems, staffing needs and service expectations. There is no single operating budget that is right for every condominium.

✓Caretaker, maintenance technician or on-site staff
✓Cleaning services and supplies
✓Gardening and pest control
✓Common-area electricity and water
✓Condominium insurance
✓Lift service and maintenance
✓Fire detection and suppression inspections
✓Pumps, gates and access-control systems
✓CCTV, intercom and communications systems
✓Repairs, spare parts and materials
✓Periodic and safety inspections
✓Contractors and specialist providers
✓Breakdown repairs and emergency calls
✓Renovations and special projects
✓Legal fees, official fees and external costs
✓A maintenance reserve or contingency allowance

These sums are not an additional fee paid to the management company. They remain condominium funds and are used to pay the building's actual expenses.

Why does the budget differ from one building to another?

Actual common expenses depend on the property and the service level its owners expect.

Number of apartments, floors and entrances
Number of lifts and type of service contract
Underground parking, gardens and external areas
Pumps, water tanks and life-safety systems
CCTV and access control
Cleaning frequency and the need for on-site staff
Age and condition of the property
The owners' desired maintenance standard
Existing repairs, debts and contractual commitments

A small building with one lift and cleaning several times a week cannot be budgeted like a property with two lifts, underground parking, landscaped areas, pumps, cameras and multiple safety systems.

That is why the management fee is stated separately per apartment, while the condominium budget is built around the building's real operating needs.

Can professional management reduce building expenses?

A management company cannot eliminate necessary building costs, but disciplined management can improve budget control and value for money.

Obtaining competing quotations when practical
Comparing terms and negotiating with suppliers
Checking invoices and payment demands
Preventing duplicate orders and unnecessary work
Following supplier warranties
Planning preventive maintenance
Identifying faults before they become major damage
Verifying that approved work was actually completed

The objective is not always to select the cheapest quote. It is to achieve the right balance of price, quality, accountability and availability.

A transparent operating model

Why keep the two components separate?

Transparency

Owners can see what pays for management and what pays for the property itself.

A genuine fit

The condominium does not pay for staff or services it does not need.

Committee control

The owners' committee receives quotations, reports and a clear picture for important decisions.

Professional accountability

Management coordinates, oversees and follows through; it does more than pass on invoices.

Long-term planning

Preventive work and forward budgeting replace purely reactive maintenance.

A proposal based on facts

How is your building's budget established?

Before preparing a structured proposal, we collect the information that actually drives the building's costs.

01Apartments, floors and entrances
02Common systems and shared areas
03Current suppliers and contracts
04Present building expenses
05Cleaning and maintenance frequency
06Existing arrears, faults or unresolved issues
07The service level owners expect

With that information, we can structure an appropriate service plan and budget — without guessing or copying figures from an unrelated property.

Straight answers

Frequently asked questions

Does the management fee include a caretaker?

No. A caretaker or maintenance employee is an operating expense of the condominium. ALTIT LUXURY manages and oversees that role according to the selected plan.

Are cleaning services included?

No. Cleaners, cleaning contractors and supplies are paid from the condominium budget. Management coordination and oversight are provided according to the service plan.

Must an adequate current budget be increased?

Not automatically. We first review contracts, expenses and actual needs. If the existing budget supports the required service level, there is no reason to increase it simply because management changes.

Are repairs and spare parts included in the management fee?

No. The fee covers receipt of the request, coordination, vendor management and follow-up. Labour, materials and parts are paid from the condominium budget.

Is action against non-paying owners included?

Collections, enforcement and initial legal handling are included. Filing fees, formal service, legal proceedings, enforcement costs and external legal expenses are separate if required.

Does the owners' committee lose control?

No. The purpose is to remove the operational burden, not the committee's authority. The committee remains informed and involved in important decisions.

Does every building receive the same budget?

No. Each budget reflects the property's systems, condition and required service level.

You remain in control

We manage everything else.

Professional building management is a daily system of service, collections, enforcement, planning, coordination, oversight, follow-up and transparent reporting.

Want to understand what your building actually needs?

Complete our building management and condominium-fee assessment. We will review the property details and use them to prepare a tailored proposal.

Request a tailored building assessment

ALTIT LUXURY BUILDING MANAGEMENT & MAINTENANCE LTD“Peace of mind for condominium owners”

altitluxury.co.il 0547923868

The precise services, level of oversight and engagement terms are determined by the selected plan, written proposal and management agreement.