In January of this year, we reported on the Index that the opinion within the condominium management profession is unanimous regarding the inevitable increase in the common cost during 2024.
Sándor Molnár, Secretary General of the National Professional Association of Hungarian Condominium Managers, reported to the economic portal Ecnonomx that common costs may rise this year, and bank costs will certainly rise as well:
for those who pay the joint costs by check, they can charge an extra HUF 1,500.
Insurance premiums are expected to rise by 15-20 percent, but there may be an increase of up to 50 percent. According to Sándor Molnár, the remuneration of the joint representatives should also be increased with inflation, and the same applies to the fees of the cleaners.
The costs of elevator service providers, the price of maintenance, rescue and official inspection are also rising, typically following inflation. Where there are custodians or heaters, they must also be taken into account. The maintenance costs make up a significant proportion, and the salaries of the professionals never go down – concluded the general secretary, who also said that it would be advisable to collect a significant percentage of the common costs into a renovation fund.
Professionals ask for daunting amounts
“Although the prices of craftsmen are somewhat more reasonable in the countryside, in Budapest the tradesmen are terribly out of date, and – with respect to the exception – they announce hourly rates of up to HUF 40-50 thousand without batting an eye, so some of the gas fitters, plumbers, and electricians really contributing to a surge in maintenance costs,” reports Economx.
And many room painters and painters report on social media that many people prefer to paint the property themselves – all this cannot be done with electricity, water or gas, there are strict rules and regulations for installing these.
The newspaper pointed out that a number of renovations were postponed in the apartment buildings, which is probably reflected in this year’s joint cost increases. They also gathered, based on a national survey, which prices increased the most:
Increase in electricity costs:
- 28 percent from 2021 to 2022
- 37 percent from 2022 to 2023
Increase in utility charges:
- From 2021 to 2022, they spent 11 percent more
- From 2022 to 2023, they spent 3 percent less
According to the survey, it is also a problem that most of the subtenants and owners, 85 percent, do not appear at the meetings, but only present their needs and comments afterwards.
In the past two years, most people have saved on security and concierge services. In 2023, residents spent 45 percent less on security services than in 2021, and 30 percent less on fire, touch and lightning protection.
The costs of banking services and cleaning jumped the most, with the former rising by 43 percent and the latter by 52 percent. In a previous analysis, we showed what problems can be caused if our home insurance is out of date and we do not update it. You can read the article by clicking here.
