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HOA Fees reach up to 30% of rent in Buenos Aires: a disconnection that puts pressure on tenants and owners - Ambito Fianciero
Source:
www.ambito.com
October 08, 2025
By Jose Luis Cieri
The weight of expenses defines contracts and is the obligatory question for those looking to rent. They are often responsible for the collapse of deals. What is recommended?
Tenants and owners are upset when they receive the monthly summary of expenses, the amounts always go up.Pexels
The impact of expenses ( in August, they exceeded inflation ) on the Buenos Aires rental market has changed significantly in recent years. Currently, this additional cost can represent up to 30% of the value of a contract , a level that alters the decisions of tenants and landlords. In a scenario marked by the repeal of the Rental Law and the flexible framework of DNU 70/2023, consultation on the value of expenses became a mandatory step before moving forward with any transaction.
The impact is twofold. On the one hand, it directly increases the cost of housing in neighborhoods with older buildings, permanent staff, or expensive amenities. On the other hand, it hinders the profitability of renters, as high expenses can scupper deals , even if the base rent is attractive.
"A concrete example is a studio apartment in Downtown with a rent of $500,000 and utilities of $150,000, which is equivalent to 26%. If you add the ABL and other expenses, the extra amount is close to a third of the monthly cost and could cause many tenants to discard the unit," he explained.
Valencia argued that neighborhoods with older buildings tend to have higher maintenance costs, which raises expenses. In contrast, in modern buildings with premium amenities and 24-hour security, such as in Palermo, Puerto Madero, or Belgrano, the prices are also high, but offset by the number of units and the use of technology.
An administrator reviews expense accounts in her office, a cost that today can determine the signing or termination of a rental agreement.Pexels
Overall, utility bills represent an average of 19.8% of the rental price in the city. The highest rates are found in Caballito (24.1%), San Nicolás (23.7%), and Retiro (23.5%), while the lowest are in Villa Soldati (11.5%), Villa Lugano (12.3%), and Parque Avellaneda (13%).
Valencia added that in the last three years, utility costs have grown more than rent, following the evolution of salaries, utilities, and maintenance. "Fixed costs increased in all industries, and utility costs followed that trend," he noted.
He explained: “These expenses average 23% of the rental price. It's not unusual for tenants to pay both ordinary and extraordinary expenses, due to the deregulation of Decree 70/2023. This burden can be equated to the amount of the rental fee.”
According to Resqui Pizarro, the decision to rent can be faltered if the expenses are too high. "The total cost of the home, including expenses, impacts the monthly budget and discourages potential tenants," he said.
The differences between neighborhoods are explained by building characteristics, the presence of amenities, and the size of the housing complexes. "In gated communities with lagoons, sports facilities, and social areas, maintenance costs are much higher than in buildings without these amenities," he added. The municipality and the number of hired personnel, especially the private security service, also play a role.
The sustained increase in expenses in recent years is due to factors such as utility rate updates, the elimination of subsidies, and the rescheduling of deferred maintenance. Meanwhile, rents are adjusted using formulas based on indices such as the Consumer Price Index (CPI), which has created a gap between the two variables.
Oriozabala emphasized the importance of providing clear and up-to-date information. “Many publications are outdated, with expenses from previous months. When the client comes to sign the contract, they find a different and higher amount, which causes frustration. That's why we work to ensure that tenants are aware of all costs and requirements from the outset,” he explained.
Regarding the differences between neighborhoods, he stated that in areas like Recoleta, Belgrano, and Barrio Norte, older buildings have higher expenses due to the maintenance of outdated systems, elevators, and central heating. In contrast, in new buildings with security and management technology, expenses are better amortized and costs are moderated.
In several consortiums, delinquency is increasing and less preventive maintenance is being carried out.Pexels
As an example, he noted that a studio apartment in a new building in Colegiales can rent for $650,000 or $700,000, with utilities (gas, electricity, etc.) of between $80,000 and $100,000. In contrast, a unit in Recoleta or Barrio Norte can have utilities (gas, electricity, electricity, etc.) of between $150,000 and $180,000, even without amenities.
• Puerto Madero: average rent $5,232,886, HOA fees $1,048,185 (20%).
• Recoleta: rent $1,263,966, HOA fees $245,097 (19%).
• Palermo: rent $1,245,252, HOA fees $247,092 (20%).
• Belgrano: rent $1,233,741, HOA fees $254,498 (21%).
• Retiro: rent $1,172,934, HOA fees $275,839 (23%).
• Núñez: rent $1,060,306, HOA fees $212,137 (20%).
• Caballito: rent $712,622, HOA fees $171,918 (24%).
• Villa Urquiza: rent $731,688, HOA fees $153,701 (21%).
• Tribunales: rent $670,259, HOA fees $196,339 (29%).
• San Nicolás: rent $618,731, HOA fees $146,558 (23%).
• Barrio Norte: rent $735,297, HOA fees $172,887 (23%).
• Once: rent $531,956, HOA fees $122,518 (23%).
• Balvanera: rent $539,900, HOA fees $119,435 (22%).
• Almagro: rent $589,266, HOA fees $124,441 (21%).
• Centro/Microcentro: rent $554,902, HOA fees $145,530 (26%).
• Villa Devoto: rent $924,050, HOA fees $156,072 (17%).
• Saavedra: rent $825,677, HOA fees $127,024 (15%).
• Villa Luro: rent $666,704, HOA fees $97,619 (15%).
• Parque Avellaneda: rent $552,307, HOA fees $72,230 (13%).
• Villa Soldati: rent $585,000, HOA fees $67,500 (12%).
• Villa Lugano: rent $523,333, HOA fees $64,533 (12%).
• Pompeya: rent $486,666, HOA fees $65,333 (13%).
The information reveals the heterogeneity of the Buenos Aires market and the relevance of this additional cost when calculating the housing budget.
In this scenario, Resqui Pizarro concluded: "The impact of expenses on rent cannot be underestimated. Today, they represent a decisive factor for owners and tenants and will continue to influence the market as long as fixed costs remain high."
www.buysellba.com
Source:
Expensas alcanzan hasta 30% del alquiler en CABA: un desacople que presiona sobre inquilinos y dueños
El peso de las expensas define contratos y es la pregunta obligada de quienes buscan alquilar. Muchas veces son las responsables de que se caigan operaciones. Qué se recomienda.
www.ambito.com
October 08, 2025
By Jose Luis Cieri
The weight of expenses defines contracts and is the obligatory question for those looking to rent. They are often responsible for the collapse of deals. What is recommended?
Tenants and owners are upset when they receive the monthly summary of expenses, the amounts always go up.Pexels
The impact of expenses ( in August, they exceeded inflation ) on the Buenos Aires rental market has changed significantly in recent years. Currently, this additional cost can represent up to 30% of the value of a contract , a level that alters the decisions of tenants and landlords. In a scenario marked by the repeal of the Rental Law and the flexible framework of DNU 70/2023, consultation on the value of expenses became a mandatory step before moving forward with any transaction.
The impact is twofold. On the one hand, it directly increases the cost of housing in neighborhoods with older buildings, permanent staff, or expensive amenities. On the other hand, it hinders the profitability of renters, as high expenses can scupper deals , even if the base rent is attractive.
One peso month by month
Iñaki Valencia of Roomix.ai explained that, on average, utility bills represent "almost 20% more than the rent in Buenos Aires." In neighborhoods like Microcentro (26.2%) or Caballito (24%), this amount can be decisive. A studio apartment that seems affordable can become considerably more expensive when this monthly expense is added."A concrete example is a studio apartment in Downtown with a rent of $500,000 and utilities of $150,000, which is equivalent to 26%. If you add the ABL and other expenses, the extra amount is close to a third of the monthly cost and could cause many tenants to discard the unit," he explained.
Valencia argued that neighborhoods with older buildings tend to have higher maintenance costs, which raises expenses. In contrast, in modern buildings with premium amenities and 24-hour security, such as in Palermo, Puerto Madero, or Belgrano, the prices are also high, but offset by the number of units and the use of technology.
An administrator reviews expense accounts in her office, a cost that today can determine the signing or termination of a rental agreement.Pexels
Overall, utility bills represent an average of 19.8% of the rental price in the city. The highest rates are found in Caballito (24.1%), San Nicolás (23.7%), and Retiro (23.5%), while the lowest are in Villa Soldati (11.5%), Villa Lugano (12.3%), and Parque Avellaneda (13%).
Valencia added that in the last three years, utility costs have grown more than rent, following the evolution of salaries, utilities, and maintenance. "Fixed costs increased in all industries, and utility costs followed that trend," he noted.
Impact on neighborhoods and buildings
Jorge Resqui Pizarro , a lawyer specializing in horizontal property law and president of the Center for Studies on Horizontal Property and Society (CePHyS), warned that the impact of these expenses "has become increasingly significant, to the point that in some cases they can exceed the value of the rent."He explained: “These expenses average 23% of the rental price. It's not unusual for tenants to pay both ordinary and extraordinary expenses, due to the deregulation of Decree 70/2023. This burden can be equated to the amount of the rental fee.”
According to Resqui Pizarro, the decision to rent can be faltered if the expenses are too high. "The total cost of the home, including expenses, impacts the monthly budget and discourages potential tenants," he said.
The differences between neighborhoods are explained by building characteristics, the presence of amenities, and the size of the housing complexes. "In gated communities with lagoons, sports facilities, and social areas, maintenance costs are much higher than in buildings without these amenities," he added. The municipality and the number of hired personnel, especially the private security service, also play a role.
The sustained increase in expenses in recent years is due to factors such as utility rate updates, the elimination of subsidies, and the rescheduling of deferred maintenance. Meanwhile, rents are adjusted using formulas based on indices such as the Consumer Price Index (CPI), which has created a gap between the two variables.
How contracts are conditioned
For Marta Oriozabala , of Real Capital Developments and Real Estate Services, the impact of utility bills on the market is direct. “Before the law was repealed, rents didn't increase for a year, which provided a degree of predictability. Today, contracts are updated every three or four months, generally based on the CPI, and with increasingly expensive utility bills, the impact on tenants' ability to pay is immediate,” she analyzed.Oriozabala emphasized the importance of providing clear and up-to-date information. “Many publications are outdated, with expenses from previous months. When the client comes to sign the contract, they find a different and higher amount, which causes frustration. That's why we work to ensure that tenants are aware of all costs and requirements from the outset,” he explained.
Regarding the differences between neighborhoods, he stated that in areas like Recoleta, Belgrano, and Barrio Norte, older buildings have higher expenses due to the maintenance of outdated systems, elevators, and central heating. In contrast, in new buildings with security and management technology, expenses are better amortized and costs are moderated.
In several consortiums, delinquency is increasing and less preventive maintenance is being carried out.Pexels
As an example, he noted that a studio apartment in a new building in Colegiales can rent for $650,000 or $700,000, with utilities (gas, electricity, etc.) of between $80,000 and $100,000. In contrast, a unit in Recoleta or Barrio Norte can have utilities (gas, electricity, electricity, etc.) of between $150,000 and $180,000, even without amenities.
Expenses and rents by neighborhood
Recent data shows how prices vary by area in Buenos Aires. Below is the data collected by Roomix.ai:• Puerto Madero: average rent $5,232,886, HOA fees $1,048,185 (20%).
• Recoleta: rent $1,263,966, HOA fees $245,097 (19%).
• Palermo: rent $1,245,252, HOA fees $247,092 (20%).
• Belgrano: rent $1,233,741, HOA fees $254,498 (21%).
• Retiro: rent $1,172,934, HOA fees $275,839 (23%).
• Núñez: rent $1,060,306, HOA fees $212,137 (20%).
• Caballito: rent $712,622, HOA fees $171,918 (24%).
• Villa Urquiza: rent $731,688, HOA fees $153,701 (21%).
• Tribunales: rent $670,259, HOA fees $196,339 (29%).
• San Nicolás: rent $618,731, HOA fees $146,558 (23%).
• Barrio Norte: rent $735,297, HOA fees $172,887 (23%).
• Once: rent $531,956, HOA fees $122,518 (23%).
• Balvanera: rent $539,900, HOA fees $119,435 (22%).
• Almagro: rent $589,266, HOA fees $124,441 (21%).
• Centro/Microcentro: rent $554,902, HOA fees $145,530 (26%).
• Villa Devoto: rent $924,050, HOA fees $156,072 (17%).
• Saavedra: rent $825,677, HOA fees $127,024 (15%).
• Villa Luro: rent $666,704, HOA fees $97,619 (15%).
• Parque Avellaneda: rent $552,307, HOA fees $72,230 (13%).
• Villa Soldati: rent $585,000, HOA fees $67,500 (12%).
• Villa Lugano: rent $523,333, HOA fees $64,533 (12%).
• Pompeya: rent $486,666, HOA fees $65,333 (13%).
The information reveals the heterogeneity of the Buenos Aires market and the relevance of this additional cost when calculating the housing budget.
In this scenario, Resqui Pizarro concluded: "The impact of expenses on rent cannot be underestimated. Today, they represent a decisive factor for owners and tenants and will continue to influence the market as long as fixed costs remain high."
www.buysellba.com
