Playa Andaluza Fees - bit of a scare

[ocdb8r]

I had a bit of a scare this morning when I opened my email to see a notice of a Special General Assembly Meeting being called to authorize an increase in the reserve contribution beyond that permitted by the governing docs. I was braced for a high special assessment, but after reading through the notice, it's much more benign. In short, the resort starts a compressive soft good refurb this year along with transformation of 2 additional units into "accessible" units in line with recently enacted Spanish legislation. The result is that the reserve would be projected to be depleted in 2027 absent some additional contribution. The proposal is for an increase in the reserve contribution over the next three years as follows:

[An additional contribution for each] Two-bedroom apartment: €38.28 in 2025, €44.03. in 2026 and €50.63 in 2027. Three-bedroom apartment: €47.60 in 2025, €54.73 in 2026 and € 62.94 in 2027. From 2028, the reserve fund contribution will revert to 3%.

...and here is the bottom line affect on 2025 MFs (if approved):

...a [total] 4.45% increase, the Maintenance Fees proposed for 2025 are €1,542.46 for 2-bedroom and €1,735.54 3-bedroom apartments respectively, inclusive of VAT – an increase of €65.71 for 2-bedroom and €73.98 for 3-bedroom apartments respectively over 2024.

Not too bad in my view and I think worth supporting.

 

[bazzap]

I had a bit of a scare this morning when I opened my email to see a notice of a Special General Assembly Meeting being called to authorize an increase in the reserve contribution beyond that permitted by the governing docs. I was braced for a high special assessment, but after reading through the notice, it's much more benign. In short, the resort starts a compressive soft good refurb this year along with transformation of 2 additional units into "accessible" units in line with recently enacted Spanish legislation. The result is that the reserve would be projected to be depleted in 2027 absent some additional contribution. The proposal is for an increase in the reserve contribution over the next three years as follows:

[An additional contribution for each] Two-bedroom apartment: €38.28 in 2025, €44.03. in 2026 and €50.63 in 2027. Three-bedroom apartment: €47.60 in 2025, €54.73 in 2026 and € 62.94 in 2027. From 2028, the reserve fund contribution will revert to 3%.

...and here is the bottom line affect on 2025 MFs (if approved):

...a [total] 4.45% increase, the Maintenance Fees proposed for 2025 are €1,542.46 for 2-bedroom and €1,735.54 3-bedroom apartments respectively, inclusive of VAT – an increase of €65.71 for 2-bedroom and €73.98 for 3-bedroom apartments respectively over 2024.

Not too bad in my view and I think worth supporting.

I agree it is not as bad as at first it seems.
You read about 15% increases but then read that this is 15% on the Reserve funding and as you say just 4.45% on the total MF.
I will still question them though as to why they have previously decided to underfund the Reserve when they will have a planned budget well into the 2030s which should have effectively taken account of hard and soft goods refurbishments and other major projects.

 

[ocdb8r]

I agree it is not as bad as at first it seems.
You read about 15% increases but then read that this is 15% on the Reserve funding and as you say just 4.45% on the total MF.
I will still question them though as to why they have previously decided to underfund the Reserve when they will have a planned budget well into the 2030s which should have effectively taken account of hard and soft goods refurbishments and other major projects.

Agreed. I did notice the underfunded amount was very close to the amount required for the accessible unit updates, which perhaps they hadn't budgeted given it's a recently revised regulation. However, I have no idea why they would let projected reserves have so little buffer.