Condominium defaults reached 11.95% in 2025, and became the highest since 2022. With this increase and the arrival of the end of the year, administrators across the country begin the process of preparing the forecast budget for the following year, one of the most strategic steps in condominium management. It is at this time that the values of the co-ownership charges, the cash balance and the capacity of the co-ownership to maintain services, invest in maintenance and preserve the residents’ assets are defined.
According to Zener Costa, CEO of LLZ Garantidora, the budget forecast requires precision, because the co-ownership has a non-profit purpose and must raise only what is necessary to operate efficiently. “If this is done without method, it can lead to high fees, insufficient reserve fund, internal conflicts and even devaluation of units. The reserve fund, in turn, must be used exclusively for emergencies and unforeseen events, with a ceiling previously approved in assembly, avoiding undue accumulation or inappropriate use of resources.”
One of the main problems with the traditional budget forecasting model is the inclusion of defaults in the budget, meaning non-compliant residents end up paying for third-party delays. “In a more modern model, non-payment is no longer part of the bill, guaranteeing the co-ownership full receipt of the monthly collection and providing more financial predictability, reduction of co-ownership charges, strengthening of the reserve fund and greater real estate value,” explains the CEO.
According to Zener, this change represents an evolution in the management of condominiums. “Modern budgeting brings more balance, security and peace of mind to property managers and residents,” he says. As part of this sector financial education movement, Zener Costa will organize a free online masterclass on January 20, aimed at property managers and professionals interested in improving the financial management of condominiums.About LLZ
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