Landlords and tenants at odds: Residential complex fees are rivaling rents!

In addition to rising rents and property prices, high increases in maintenance fees, particularly in residential complexes, are becoming a burden. Increases in costs for energy, maintenance, and security are driving up fees, especially in major cities, with fees in Istanbul rising by an average of 60 percent in the first half of 2024. In luxury complexes, this rate has reached 160 percent. Despite the decline in inflation, no decrease in fees is expected, and this situation is leading to tensions between residents, tenants, and managers during the general assembly meetings held in January.

INCREASES IN FEES HAVE REACHED UP TO 160 PERCENT

According to research by the real estate valuation company EVA, maintenance fees increased more than rents in the first six months of 2024. When comparing January 2023 to August 2024 in Istanbul, fees rose by an average of 60 percent. In luxury complexes, this rate went up to 160 percent.

According to a report by Cumhuriyet, maintenance fees in Istanbul start at an average of 4 thousand liras and exceed 15 thousand liras in luxury villa complexes. While the lowest fees by district are generally seen in Silivri and Çatalca, districts such as Beşiktaş, Şişli, Kadıköy, and Sarıyer rank at the top among those where the highest fees are paid.

ACCURATE CALCULATION OF COSTS IS IMPORTANT

Hakan Akdoğan, Chairman of the Istanbul Chamber of Commerce (İTO) Real Estate Committee, emphasized that costs must be taken into account when determining maintenance fees. “Increases in the salaries of personnel and the companies from which complexes receive external services are reflected in the fees as hikes. However, what is important here is to examine whether the hike implemented is above the actual costs,” he said.

Akdoğan stated that the duty of property management boards is to create a balanced budget, adding that residents should attend general assembly meetings to examine the budget details.

CRITICAL POINTS IN FEE CALCULATION

Akdoğan pointed out that maintenance fees vary depending on the size of the projects and the type of residences. “The maintenance expenses of a project with 60 units are not the same as those of a project with 600 units. In projects with fewer units, the distribution of costs among the residences can increase the fees. Furthermore, when determining fees, pricing is done based on square meter unit prices. Residents should check the accuracy of these pricing calculations,” he said.

News Source: 12punto