In recent days, the announcement of the increase in rates for public services such as gas or electricity, which will be between 300% or 500% increase, will be reflected in the expenses. According to a survey carried out by Octopus Proptech of more than 115,000 homes, Expenses in the month of March increased by 7.88%, with an average value of $79,511. The accumulated 2024 is 19.34%
According to estimates from the sector, the expenses, although they usually adjust to a slower pace and end up falling below inflationwill have a sharp rise once these costs are impacted in the consortia.
“What is expected from the government’s announcement in the area of services are strong increases throughout the year as public service rates that were delayed, with repressed inflation, are adjusted,” he commented. Nicolás Baccigalupo, CEO of Octopus Proptech.
And I add: “As the rates are updated to the values they should be at, we will see a strong impact of an increase in expenses. In the previous period, the intervention in energy and gas prices was a key factor that contributed to the fact that expenses were always adjusted, month by month, below the inflationary value. When this intervention is released, with the new government, this price update is generated that will have a fierce impact on the consortia.”
What has not yet been resolved was the joint agreement between the building managers. When that happens, expense values will rise even more. This is because the weight of Item 1, which is the Labor Cost (salary and contributions) of those in charge, They come to weigh more than 40% of the expenses of an expensethan Item 2, which are public services such as Aysa, Edenor or Edesur, Metrogas.
All expenses related to public services of the consortium, Aysa, Metrogas, Edenor, Edesur, have a weight of 10.65% of the consortium’s total expenses. Item 2 differs from item 3, which is “Service Subscription.” The latter are the services that generate monthly or at most bimonthly payments. For example, security expenses, Internet expenses, elevator maintenance, payment for fire extinguishers and fixed fire-fighting installations, unclogging, and fumigation services may be considered.
“These increases are going to generate big adjustments, difficulty in paying expenses, therefore, greater late payment and, ultimately, great difficulty for consortia to meet payment obligations. It is possible that due to lack of funds it will be decided not to carry out some maintenance works with the enormous risk that this entails and the possible negative impact on society,” commented Nicolás.
Based on a survey carried out by Octopus PropTechexpenses for the month of March increased by 7.88%, a value that is 3.12 points below inflation. The average value of March expenses for households was $79,511. These figures reflect the average of all the consortium’s expenses: salaries, service payments, purchases, public services, security, cleaning, maintenance, professional fees, among other costs.
When it comes to making an interannual parallel, The numbers reflect that from March 2023 to this time there was an adjustment of 206.42%, located below inflation 81.48% in those same terms (287.9%).
Source: Ambito
