Introduction
Understanding the distinct roles of the President and the Management Company (Administrador de Fincas / ACV) is essential for every one of us. Confusion between the two often leads to frustration, poor decisions, and even abuse of power.
This article explains:
- What each role does legally
- How they should work together
- Who really gives the orders
- What to look for when evaluating your management company
The President (Presidente de la Comunidad)
The President is always an owner (a fellow neighbor) and holds the position by election, rotation, or even lottery. The role is legally mandatory.
Core Function: Legal representation and decision-making.
Key Powers & Duties:
- Legal Representative: Represents the community in court and before authorities.
- Calls & Presides over Meetings: Convenes the Junta (General Meeting of Owners) and leads discussions.
- Urgent Decisions: Can authorize essential, urgent repairs (e.g., a burst pipe) without waiting for a full Junta meeting, though must inform owners later.
- Enforces Rules: Can demand that owners or tenants cease prohibited or nuisance activities.
The Property Management Company (Administrador de Fincas / ACV)
This is a professional external company that the community hires. Its role is technical, administrative, and advisory. Crucially, the management company does NOT have a vote in community decisions.
Core Function: Professional management, advice, and execution of agreements.
Key Powers & Duties:
- Advisor to the President & Junta: Their primary role is to advise the President and owners on legal, financial, and technical matters. They ensure decisions comply with the law.
- Economic & Administrative Management: Prepares budgets, manages cash flow, pays suppliers, collects community fees, and handles contracts.
- Drafts Legal Documents: Writes meeting minutes (actas), convening notices, and official certificates.
- Executes Junta Agreements: Once the Junta (the owners) approves a decision, the management company executes the practical steps (e.g., hiring the construction company).
How They Work Together (And Who Really Gives the Orders)
1. The President Does NOT Give Orders to the Management Company
The President is not the management company’s boss. The management company is hired by the Junta de Propietarios (all owners), not the President personally. A good management company serves the interests of the entire community, guided by the law and the Junta’s decisions. If a President asks the manager to do something illegal or against a prior Junta agreement, the manager is obligated to refuse.
2. The Management Company Advises, The President Decides Formally
The relationship should be highly collaborative. An experienced manager will guide the President on what is legally possible. The President then uses this advice to call meetings, make formal proposals to the Junta, or sign necessary documents. The President’s primary mission is to represent, not manage. The technical, economic, and legal management falls to the property manager.
3. The Junta is the Ultimate Authority
The most important fact for you as an owner: Neither the President nor the Management Company has unilateral decision-making power over major issues.
The Junta (the assembly of all owners) is sovereign. The following require a vote by the owners at a Junta meeting:
- Approving the annual budget and fees.
- Approving major or non-urgent works and improvements.
- Suing neighbors for non-payment of fees.
- Changing the management company itself.
Summary of Roles
| Who | Role |
|---|---|
| The Junta (owners) | Decides |
| The President | Represents and calls the meeting to make that decision legal |
| The Management Company (ACV) | Advises and executes the decision professionally |
Key takeaway: If a President is trying to force a management company to act against the interests of the owners, that is a significant red flag. Your best recourse is not to fight the President directly, but to attend the Junta meetings, make your voice heard, and vote. The President’s actions must generally have the backing of the Junta.
The President is an owner like you, but with specific legal duties, while the management company is a professional service provider accountable to the entire community.
How to Evaluate Your Management Company (ACV)
A bad management company can cause years of frustration, hidden costs, and legal problems. Here is what to look for.
1. Professional Qualifications and Legal Standing
A good management company should be run by a colegiado – a member of the Colegio de Administradores de Fincas. This provides:
- Professional indemnity insurance – if they make a mistake that costs the community money, the insurance covers it.
- A surety bond – if they steal money, the Colegio responds.
- A code of conduct – they can be reported and sanctioned if they act badly.
- Continuous training – they know the law as it changes.
What to ask: Are you a colegiado? Can you provide proof of your insurance and bond?
Red flag: Any administrator who is not colegiado. Ask yourself why they cannot or will not join.
2. Separate Bank Account for the Community
The management company should keep the community’s money in a bank account in the community’s name, not mixed with other communities (no caja única).
What to ask: Is our money in a separate account in the community’s name? Will the president and treasurer have direct online access to see the balance and transactions?
Red flag: The administrator refuses to give the president or treasurer online viewing access. Or the account is in the administrator’s company name.
3. Transparency and Communication
A good management company should provide:
- Monthly financial reports to all owners (not just at the AGM)
- A single place (website/app) where owners can see all documents – minutes, budgets, contracts, invoices, bank statements
- Response within 48 hours to any owner query (urgent matters within 24 hours)
- Regular site visits – the administrator should visit the property proactively
What to ask: How do owners submit questions? What is your guaranteed response time? How often do you visit the property? Can you show me an example of a monthly report?
Red flag: The administrator only communicates through the president. Or refuses to give owners direct contact details. Or takes weeks to answer.
4. Financial Management
What to ask:
- How do you prepare the annual budget? Do you consult owners?
- How do you handle debtors? What is your process and timeline?
- How many communities do you manage? (Too many means you will be ignored.)
- Do you have a digital system where owners can see their individual payment status?
Red flag: The administrator cannot show a sample monthly report. Or manages more than 50 communities alone.
5. Vendor Management and Conflicts of Interest
A good management company should have a panel of approved vendors and should get at least three quotes for any substantial work (over €500 or as decided by the committee).
What to ask:
- Do you or any family member own or have shares in any vendor company?
- Do you receive commissions or rebates from vendors? If yes, will you disclose them in writing?
- Will the community be allowed to use its own chosen vendors for some services?
Red flag: The administrator always uses the same vendors and refuses to get alternative quotes. Or cannot tell you if they receive commissions.
6. Technology and Digital Tools
A good management company should provide:
- An app or web portal where owners can see all community documents, bank balance, and recent transactions
- Ability to report problems and see responses
- Zoom or similar for AGMs and committee meetings
- Digital minutes published within a week of any meeting
What to ask: Do you provide an app or web portal? Do you support Zoom for meetings? How soon are minutes published?
Red flag: The administrator says «we prefer paper» or «not all owners have email» as a reason for no digital tools.
7. Labour Law Knowledge (Subrogación)
This is critical for communities with gardeners, cleaners, or concierges. A good management company must understand Art. 44 of the Workers’ Statute (mandatory subrogation) and Art. 42 of the Ley de Subcontratación (solidarity liability).
What to ask:
- How do you handle the transfer of workers when changing contractors?
- Do you check that vendors are up to date with Social Security payments before the community pays them?
- Can you explain subrogación to me in simple terms?
Red flag: The administrator gives blanket statements like «you must take the gardener» without analysing the actual working patterns.
8. References and Reputation
What to ask for: References from three communities they currently manage.
What to ask those references:
- Do you see the bank account in real time?
- How fast do they respond to emergencies?
- Do they get three quotes for work?
- Have they ever recommended cost savings?
- Would you hire them again?
Red flag: The candidate refuses references or gives only one.
9. Fees and Contract Terms
The community needs a clear, written contract that specifies:
- Monthly or annual fee (fixed, not a percentage of community spending)
- What is included and what is extra
- Notice period for termination (recommended: 30 days, not 3 months)
- What happens to documents and bank access if the contract ends
What to ask: Can I see the contract before signing? What is the notice period?
Red flag: No written contract. Or a 6-month notice period (designed to trap the community).
10. Proactive Improvement
A good administrator does not just react. They propose:
- Energy efficiency measures (LED, solar, insulation) and help find grants (Next Generation funds)
- Cost savings (renegotiating contracts, task-based payment)
- Legal updates and maintenance schedules
What to ask: What improvements have you suggested to other communities? Have you helped any community get Next Generation grants?
Red flag: The administrator has never heard of Next Generation funds. Or cannot name one improvement they have suggested.
Quick Evaluation Checklist
| Criterion | What to look for | Red flag |
|---|---|---|
| Colegiado | Yes, with insurance and bond | No colegiación |
| Separate bank account | In community’s name, owners can see | Mixed caja única |
| Response time | 48 hours (24 for urgent) | No commitment or weeks |
| Three quotes | For work over €500 | Always same vendor |
| Digital tools | App/portal with documents and bank view | Paper only |
| Labour law knowledge | Understands Art. 44 and 42 | Blanket statements |
| References | Three current communities | Refuses or only one |
| Contract | Written, 30-day notice | No contract or 6-month notice |
| Proactive | Suggests savings and grants | Never heard of Next Generation |
Legal References Used in This Article
- Art. 20 LPH – Obligations of the administrator (financial, technical, secretarial)
- Art. 16 LPH – Owners’ right to access documentation
- Art. 18 LPH – Right to challenge (impugnar) decisions, including hiring of administrators
- Art. 44 Workers’ Statute – Mandatory subrogation (worker transfer)
- Art. 42 Ley de Subcontratación – Solidarity liability for vendor debts
