The inflationary level of 2022, which recorded a 94.8% increase according to INDEC, shifted by virtually the same amount at the expense of those living in horizontally owned buildings, recognized in the chamber that brings together the consortium administrators. Among the reasons for the increase are the tariff increases and the rest of the goods and services involved in the maintenance of this type of property, on which the salaries of the managers weigh heavily and, lately, the higher security costs.
Clearly the increases vary according to the building typologies, categories and services. According to data collected by ConsorcioAbierto, a company that develops a management system for consortium administrators and residents, The increase in expenses between November 2021 and November 2022 was 80% in neighborhoods and 86% in buildings.
Currently, the average “raw” real estate expense (excluding debt) is $10,750 for expenses less than $30,000 and $65,163 for expenses greater than $30,000. Data is from November and is from more than 6000 consortia who use the management system of that company.
However, including debts, i.e. those that the joint venturer actually ends up paying, the amount rises significantly. Depending on the different geographical areas, These average expenses in CABA are $30,471; in GBA it is $23,868 and in the interior of the country it is $22,349.
According to Albano Laiuppa, director of the Consorcio Abierto, “it is complex to manage anything in this context, therefore the control of spending and arrears is crucial. “in many families there are financial restrictions that breed delinquency. It also happens very often that people willing to pay forget to pay on time or are less aware of it, she explained.
In addition to ordinary expenses, the owners of the units must pay extraordinary expenses (when extraordinary expenses for breakages or repairs occur) from which the tenants of the real estate units are excluded, as specified by the Tenancy Law in force from 2020.
These people’s problems when it comes to meeting the monthly expenses of their home are the determinants of the increase in delinquency. According to the data processed by ConsorcioAbierto, arrears in the payment of expenses is 30%. “In principle, improving communication channels is essential to reduce this non-payment,” Laiuppa recommends.
According to Miguel Ángel Summa, president of the Argentine Chamber of Horizontal Property and Real Estate Activities (CAPHyAI), “today delinquency is high”. In this sense, he points out that while historically it was at levels of 15 or 20% currently, due to the pressure of inflation, it can reach 40%, in some cases. For this he points out that many administrators have to anticipate these situations and manage a surplus to meet monthly expenses.
A heavy ingredient in the amount of expense is the salary of the condominium manager. It is estimated that the incidence of these salaries (salary and social security contributions) in the monthly settlements, it usually explains between 60% and 70% of the total value.
According to an agreement reached by the Single Union of Workers of Horizontal Income Buildings (SUTERH) and employers, since August the managers have been collecting compensation corresponding to a remunerative sum of $134,000 which it will now end in February at $26,000. And it is estimated that, by the end of the first quarter of this year, the parties will meet again to revive the parity of the sector. Currently, the average salary for a manager is over $200,000.
Another item that has recently been affecting the cost of expenses It’s the security issue. According to Summa, burglars don’t usually waste brass water meters, doorknobs or knobs, among other temptations. For this reason, in many buildings the installation of wireless security camerasas a cheaper alternative to the traditional person providing surveillance during the most vandal-prone hours.
In this context, where cumbersome expenses add up to other family expenses, the consortium members offer some advice to make shopping expenses more efficient: from access to the traceability of consortium expenses, to the use of technology since digitized information allows view the variation of expenses and the origin of any deviations.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.