Monthly utility costs of Apartments

Owning or renting a property is an important part of many people’s lives, but managing utility costs can often be a challenge. In order to effectively manage our real estate expenses, we need to understand and consciously manage these costs. In this article, we take a detailed look at monthly property utility costs and provide tips on how to reduce costs.

When analyzing the monthly utility costs of properties, it is important to distinguish between fixed and variable costs. Fixed costs, such as home insurance and common costs, are independent of the intensity of use of the property. These costs are stable and predictable, and the property owner must always take them into account.

Variable costs, such as utility costs and other service costs are depending on the use and quality of the property. These may increase or decrease proportionally with the use of the property, so it is important to monitor and optimize these costs if necessary.

In order to reduce the monthly costs of properties, we can give you many tips. The use of energy-saving devices and the purchase of modern machines can help reduce energy consumption and maintenance costs. In addition, with regular maintenance and care, we can prevent higher costs and preserve the value of the property in the longer term.

Fixed overhead costs

The fixed overhead costs are the same regardless of the intensity of use of the property, and they include:

Home insurance: Provides coverage in the event of damage to the property and its assets.
Common cost: The fee for the maintenance and operation of the common areas of the condominium, which includes the garbage collection fee, elevator maintenance, corridor/staircase lighting, cleaning of common areas, etc.

Variable overhead costs

Variable costs are depending on the intensity and quality of use of the property. The main costs of using the apartment, are the utility fees:

Heating fee: There are different heating systems, such as individual gas heating (convector/boiler) central heating (condominium has its own central gas boiler) central heat pump system (wall heating or ceiling/floor heating), possible district heating or electric heating (infrared panel, electric convector) during the heating season.

Each system has a different degree of efficiency, of course their cost depends on the features of the apartment and the use.

Water and sewerage fee: All consumers pay a sewerage fee to the service provider based on the amount of water used.
Electricity fee: Includes the use of all electricity in the property: direct electricity use (sockets, lighting), air conditioning use, possible hot water heating (if there is an electric boiler in the apartment) or possible heating fee (if an electric convector or infrared panel is installed).
Internet, TV, telephone: The monthly fee depends on the service providers and individual needs. We can choose from different package offers, choosing different loyalty periods.

In addition to utility costs, there may also be unexpected expenses:

Machinery failure: any machine can be broke down, repairing older machines is often more expensive than replacing them.
Maintenance and renovation: Mechanical systems must be maintained annually, such as cleaning the air conditioner and checking the boiler. In order to preserve the condition of the apartment, it is recommended to paint the property every 2-3 years.

During the rental period, the costs arising from the use of the apartment, including utility costs and rent, as well as compensation for damages caused by improper use or vandalism are the Tenant’s obligation.
The owner of the property is obliged to keep the apartment in a suitable condition for use. Repairs arising during the proper usage are also the responsibility of the Landlord.

Tips for reducing the monthly costs of the property

To reduce monthly costs, it is worth following the following tips:

Use energy-saving devices: By using energy-saving devices, you can reduce energy consumption and thereby reduce utility costs.
Use of modern machines: Modern, quality equipment has a long service life, with reliable service possibility.
Maintain the property: Regular maintenance can prevent major costs. The ongoing maintenance of the property is also important for renting out.

Summary

Effectively managing and reducing monthly property costs is important for both property owners and tenants. Analyzing and optimizing fixed and variable costs, as well as proper maintenance and care, can help us manage the finances of our property in a sustainable and economical way.

In addition to reducing costs, preserving and increasing the value of the property is also an important aspect, which can be achieved with regular care and maintenance.

If you want to rent out your property for long term, choose our real estate service and also we can help you with the maintenance with our property management service. Read the opinions of our partners on our Google Company profile.