Explore, connect, thrive in
the expat community

Expat Life: Local Discoveries, Global Connections

Building HOA expenses in Buenos Aires rose 88% from January to June 2024

Yes I think that must be the case. I mentioned yesterday that 2 Airbnb units in my building have switched from short term to long-term 1 and 2 year leases. The owners got tired of paying monthly condo bills and utility bills which kept going up. Now the new tenants pay those things and it is guaranteed income for the owners. One owner told me that it has been very slow so far this year in a normally busy time. I believe tourism is down quite a lot. Some estimates say 40%.
Also in my building several owners stopped renting short-term and moved to rent long term. I am also looking to place my apartment for long term rental as I am going to be forced out of BA. There is a noticeable difference with tourists. I don't see many now compared to before this time.

In a bit of good news, I noticed this is the 2nd month in a row where my HOA bills have actually gone down. There will probably be constant challenges with expenses as inflation is still a factor. Also, utilities will most likely keep getting raised and salaries will go up but this is the second month in a row where they not only went up but they came down. We will see what the long term trends are in HOA fees.
That is good but what caused it to go down? In my building they stopped going up as high as 2024 but prices are not coming down. I wonder how prices can go down if inflation is still 3% a month.
 
Also in my building several owners stopped renting short-term and moved to rent long term. I am also looking to place my apartment for long term rental as I am going to be forced out of BA. There is a noticeable difference with tourists. I don't see many now compared to before this time.


That is good but what caused it to go down? In my building they stopped going up as high as 2024 but prices are not coming down. I wonder how prices can go down if inflation is still 3% a month.
Yes there has been a trend with many locals shifting away from STR to LTR due to the increasing cost of expenses. Some HOA bills went up 200% from a little over a year ago. Also, utility bills keep going up in price. And most importantly, tourism has fallen tremendously. Some of my friends that manage properties say it's the slowest it has been in many years. So with slower occupancy rates, people aren't booked as much and long term rentals in many areas are making 4.5% to 5% yields so people are taking the guaranteed income.

Also with President Milei's elimination of the rental law people can do shorter term contracts which is desirable. Many are doing them in pesos and have inflation clauses on them so they prefer that vs. the unknown of short-term rentals.

It will be good for existing Airbnb owners once the market shifts back again.

That's a great question @Larry. I will have to take a deeper dive later when I have more time. I will look at the totals. What it could be is that much of my building in Palermo Hollywood are STR units and with the slow down in tourism, maybe they are empty. In that building they just add up the total water bill and they pro-rate them to each owner based on the size of the unit.

So if there is far less tourism, then less usage in water and lower overall bill.
 
Back
Top