Often described as a precursor to Argento's masterpiece "Suspiria', "La Residencia" is a rather classy tale of gothic horror that takes place in an all-girl boarding school. The atmosphere is indeed the film's strongest attribute as it is painted on thick, with its set design and music amplifying the eerie sense of dread it emanates. Sadly, the narrative is rather weak, often lapsing into moments sleaze that feel out of place with the film's "artistic" sensibilities. In addition, the revelation to the mystery is all to obvious, making it throughly disappointing.
"Suspiria" was indeed vastly superior, in atmosphere, suspense, and even plot (which isn't Suspiria's strong point either). Still, this is still a rather effective and well above-average example of European Gothic Horror.