Apartment Rental Record increase in expenses in CABA: They rose almost 22% in April - Infobae

[BuySellBA]

Record increase in expenses in CABA: They rose almost 22% in April - Infobae​

Source:

Aumento récord de expensas en CABA: subieron casi 22% en abril

Un informe privado confirmó que el valor promedio en edificios porteños fue de $138.836 el mes pasado. Crece la preocupación entre consorcios y administraciones

www.infobae.com

May 16, 2024

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A private report confirmed that the average value in Buenos Aires buildings was $138,836 last month. Concern grows among consortia and administrations

By José Luis Cieri

High costs make it difficult to maintain fronts and common areas in buildings (Illustrative Image Infobae)

Concern is growing among consortiums, administrators, owners and tenants due to the constant increases in expenses.

A private report confirmed that in April the month-on-month increase was 21.95%, a record for buildings in the city of Buenos Aires. The average expense was $138,836, compared to $113,840 in March. When comparing with April 2023, $39,882, the interannual increase that was registered is 248.11 percent.

This survey, carried out by the ConsorcioAbierto platform among more than 10,000 consortia, also reveals that in the province of Buenos Aires the average expense in buildings without including debt corresponding to April was $58,386; In March it was $55,834, so the increase is 4.57 percent.

If the April expense is compared to that of April 2023 of $16,332, the year-on-year increase is 257.49% in Buenos Aires territory.

Inter-monthly evolution of expense prices in five districts of the country (ConsorcioAbierto)

“Expenses will continue to increase in the coming months. The bonus payment corresponding to the consortium staff is coming and also the increases in water, electricity and gas rates. Buildings that have heating through boilers will also feel the impact on expenses during the months after the cold,” highlighted Albano Laiuppa , director of the platform.

Delinquencies increased and are currently estimated to exceed 35%, compared to 20% a year and a half ago. This situation makes it difficult to manage the consortium and negotiate better prices, creating a harmful cycle for those who comply with their payments.

Tips​

Although expenses rose with a record increase in May, it is expected that future increases will be in lower percentages than in previous months due to greater inflationary stability and reductions in prices for major jobs.

David Loisi , president of the Horizontal Property Consortium League Foundation, recommended to the consortia to add income and reduce costs that it is convenient to rent empty spaces such as the goal and take advantage of terraces or party walls for advertising. “Switching to LED fixtures can also significantly reduce energy expenditure,” he said.

It is advisable that the owners, for their part, make responsible consumption of water and energy to contribute to the general savings of the consortia.

It is also key to look for new suppliers for the maintenance of elevators, water pumps and fire extinguishers, and adjusting the boiler ignition time are other suggested measures.

To reduce service costs, Loisi suggested that co-owners become more involved, actively participating in assemblies and seeking alternative budgets. The removal of energy and gas subsidies is already having an impact, with AYSA bills that increased more than 200% from one month to the next.

“In consortia with central hot water service or boilers, measures such as minimizing boiler start-up hours have been implemented to counteract this effect,” he noted.

Employed in the middle of cleaning common areas (Illustrative Image Infobae)

Recently, sector specialists presented a bill in Congress that seeks to reduce this burden for consortia throughout the country. It is endorsed by the real estate market expert and administrator Alberto Héctor Loyarte and by the public accountant Fernando Pedro De Gregorio.

“Its main objective is to reduce expenses in consortia. If it becomes normative, it could reduce the cost of expenses by up to 20% per month,” he clarified to Infobae Loyarte.

The project calls for removing the Tax on Bank Credits and Debits for consortia; reduce the VAT rate from 21% to 10.5% on building administration and maintenance expenses; review and potentially eliminate redundant contributions ; and flexibility in hiring personnel , among others.



www.buysellba.com

 

[Sunny]

Recently, sector specialists presented a bill in Congress that seeks to reduce this burden for consortia throughout the country. It is endorsed by the real estate market expert and administrator Alberto Héctor Loyarte and by the public accountant Fernando Pedro De Gregorio.

“Its main objective is to reduce expenses in consortia. If it becomes normative, it could reduce the cost of expenses by up to 20% per month,” he clarified to Infobae Loyarte.

The project calls for removing the Tax on Bank Credits and Debits for consortia; reduce the VAT rate from 21% to 10.5% on building administration and maintenance expenses; review and potentially eliminate redundant contributions ; and flexibility in hiring personnel , among others.

I really hope this happens. In my building the expenses went up 80% in April.

 

[earlyretirement]

I really hope this happens. In my building the expenses went up 80% in April.

Yes, it is painful but most likely it will get worse with costs of water, gas, electricity, salaries continuing to go up. I've seen HOA fees yo yo over the past 22 years. From realy cheap to expensive back down cheaper and now they will head up again. I don't think we will ever see the super low rates we had for the past several years. Everything will get more expensive now.

 

[Betsy Ross]

Yes, it is painful but most likely it will get worse with costs of water, gas, electricity, salaries continuing to go up. I've seen HOA fees yo yo over the past 22 years. From realy cheap to expensive back down cheaper and now they will head up again. I don't think we will ever see the super low rates we had for the past several years. Everything will get more expensive now.

Yep. Same. I never really controlled my electricity usage and would leave my AC when I went out. But now I am turning off lights when I am not in the room. Watch my water usage but in my building water is included with HOA and some people don't care and use more than their fair share I'm sure. I just hope they don't go up too much. People are already struggling and these expenses are skyrocketing. Mine almost doubled last month.

 

[Vince]

I really hope this happens. In my building the expenses went up 80% in April.

Yep. Mine went up 75% last month. I knew it would go up but didn't think it would jump up so quickly. And I'm told it will get worse.

 

[Vero]

I really hope this happens. In my building the expenses went up 80% in April.

Wow 80% is significant. Mine went up but only around 25%. What accounts for the drastic increase @Sunny? Did they line item what caused it to go up so much?

 

[Vince]

Wow 80% is significant. Mine went up but only around 25%. What accounts for the drastic increase @Sunny? Did they line item what caused it to go up so much?

Nothing extraordinary, that I know of. The portero said that there will be a consorcio meeting in a couple of weeks, but I haven't received the email with the details yet. The expenses, up until March 1 were rather low for this 64 y/o building, which has been kept in excellent shape.

In my building everything went up.

-Insurance insuring the building
-Electricity in common areas
- Gas increases
- Water increases
- We had to give a raise to the portero.
- We had to give a raise to our property administrator.
- Cleaning supplies and other general supplies went way up.

 

[Flamingo]

In my building everything went up.

-Insurance insuring the building
-Electricity in common areas
- Gas increases
- Water increases
- We had to give a raise to the portero.
- We had to give a raise to our property administrator.
- Cleaning supplies and other general supplies went way up.

Yes this is the same things that went up in mine. I think everyone should see these increases. Some more than others. Much depends how well your administration does managing. Some are very good but some are horrible. Ours is not that great and they wanted to raise their fees and we said no. We looked for another company but surprisingly many aren't taking on new clients.

 

[Jenn]

I really hope this happens. In my building the expenses went up 80% in April.

How do locals even budget or deal with 80% increase from one month to the next. Here in the USA most of my friends live paycheck to paycheck. There is NO room for anything more and many use their credit cards to make it to the next month. How does someone plan for 80% increase from one month to the next? Especially with very low salaries there. I can't imagine that scenario.

 

[Vero]

How do locals even budget or deal with 80% increase from one month to the next. Here in the USA most of my friends live paycheck to paycheck. There is NO room for anything more and many use their credit cards to make it to the next month. How does someone plan for 80% increase from one month to the next? Especially with very low salaries there. I can't imagine that scenario.

It is VERY difficult here. Here we don't have so much credit like you have in United States. Many people have to get help from their family or many friends now are spending life savings to pay the bills. I see online many Americans complaining all the time about everything. I do not think they could survive these types of conditions. You have a very weak and soft society.

 

[oil rush]

But to be fair even with the 80% increase isn't the cost fairly affordable? It says average HOA fee is 138,836 pesos. That's only around $127 dollars. Here is Brazil expenses aren't cheap. Or are you all paying much more than that?

 

[Billy Goat]

The middle and upper classes are spending some of the dollars they've been saving up over the years. The working class is pinching pennies. I've heard that HOA delinquency is higher now.

Yes this is true. I started seeing people in my building late paying their expenses. Some are several months behind now. We will see what happens when some of these middle class run out of dollar savings to sell.

 

[Digital Nomad]

But to be fair even with the 80% increase isn't the cost fairly affordable? It says average HOA fee is 138,836 pesos. That's only around $127 dollars. Here is Brazil expenses aren't cheap. Or are you all paying much more than that?

ANY increase at a time when everything else is going up my girlfriend tells me is tough. It is not relative to locals what it cost in other countries. They are already getting pinched with inflation and now increases in gas, transportation, utilities, and HOA so they are feeling it at all ends.

Yes this is true. I started seeing people in my building late paying their expenses. Some are several months behind now. We will see what happens when some of these middle class run out of dollar savings to sell.

Yes when I look at my Novia's bill I can see each of her neighbors on the monthly bill and how much they owe from previous months. I think this is a good idea to show this almost making the person late conscious that they are behind. But if you don't have the money you can't pay. But it looks like a hefty interest fine when you pay late.

 

[Vince]

ANY increase at a time when everything else is going up my girlfriend tells me is tough. It is not relative to locals what it cost in other countries. They are already getting pinched with inflation and now increases in gas, transportation, utilities, and HOA so they are feeling it at all ends.


Yes when I look at my Novia's bill I can see each of her neighbors on the monthly bill and how much they owe from previous months. I think this is a good idea to show this almost making the person late conscious that they are behind. But if you don't have the money you can't pay. But it looks like a hefty interest fine when you pay late.

Yes they charge interest for each late payment when you don't pay on time.