7 hidden positions in apartment maintenance costs, what no one talks about before purchase, but what really affects the household budget
7 hidden positions in apartment maintenance costs, what no one talks about before purchase, but what really affects the household budget
When buying an apartment, most people focus on three numbers. The purchase price, the monthly loan installment and the administration fee. These three positions seem to be the full picture of the cost of owning real estate. In practice they are only the tip of the iceberg. The full cost of maintaining an apartment includes dozens of smaller positions that together can increase the monthly household budget by several hundred zlotys. Let us therefore look at these hidden positions that almost no one points out before a transaction but that later surprise new owners.
The first position, the renovation fund of the housing community. This is a component of the administration fee that finances future renovations of the building. Modernization of the staircase, replacement of the roof, insulation of the facade, modernization of the elevator, repair of the central heating installation. These are works that sooner or later appear in every building. The renovation fund in new buildings is often 50 to 150 zlotys per month. In older buildings with more intensive modernization plans it can reach 200 to 400 zlotys. In extreme cases, when the community plans a large multi year renovation, the fund can be raised one off or periodically, adding another several hundred zlotys to monthly costs. Before purchase it is always worth asking about the current level of the fund and the planned community projects.
The second position, fixed media fees. Each of the three main media providers, meaning electricity, gas and water, has a fixed subscription part in the price list, independent of actual consumption. These are positions that accrue every month even if the apartment stands empty. Electricity is 25 to 50 zlotys per month, gas 15 to 40 zlotys, water is usually part of the administration fee but in some buildings is charged separately. In total these fixed positions are 50 to 150 zlotys per month.
The third position, apartment insurance. A policy against fire, flood, theft and civil liability costs today in Poland 200 to 700 zlotys per year, meaning 17 to 60 zlotys per month. For an apartment bought with a mortgage, insurance is practically obligatory because the bank requires it. For an apartment bought for cash the policy is not obligatory, but it is strongly recommended because it protects against major financial consequences of random events.
The fourth position, internet, TV, telephone. A basic package with fast fiber internet is today 50 to 80 zlotys per month. An extended package with cable or satellite TV is 100 to 180 zlotys. A landline phone adds another 20 to 40 zlotys. For many families the combined package is 150 to 250 zlotys per month. Often this is a cost signed in a long term contract that cannot be quickly canceled.
The fifth position, minor repairs and ongoing maintenance. Replacement of bathroom fittings, washing machine repair, replacement of a burnt bulb in a high ceiling, painting after a year or two, replacement of small finishing elements. These expenses rarely occur in one specific month, but on a yearly scale they sum up to 1200 to 4000 zlotys, meaning 100 to 300 zlotys per month averaged over time. In the case of an apartment with older plumbing or electrical installation these costs can be higher.
The sixth position, the subscription for public television and radio, meaning the classic RTV subscription. In Poland it applies to every owner of a TV or radio receiver. The current monthly rate is 8 zlotys for radio alone, 27 zlotys for television plus radio. Some people do not pay, treating it as a faulty tax, but formally it is an obligation. Inspections today are rare but possible, and fines for an unpaid subscription can reach 30 times the monthly rate.
The seventh position, fees for garage, parking space and storage room. Each of these rooms, although not an apartment, generates its own administrative fees. A parking space is usually 30 to 50 zlotys per month. A closed garage 50 to 90 zlotys. A storage room 20 to 40 zlotys. These fees are independent of whether we actively use the given room.
The total addition to the basic administration fee, which no one points out in sales offers, is today for a typical apartment in Kraków 400 to 1000 zlotys per month. On a yearly scale this is 4800 to 12000 zlotys. Over 10 years this is 50 to 120 thousand. This is real money that is worth taking into account when planning the purchase budget and the projected financial comfort after moving in.
But this is not all. There are also positions that appear periodically. First, property tax, which for a typical apartment in Kraków amounts to 50 to 200 zlotys per year. Second, possible special community contributions, for example for a facade renovation, which can add several hundred or several thousand zlotys one off. Third, installation service costs, such as annual inspection of the boiler, air conditioning or ventilation system, totaling 200 to 800 zlotys per year. Fourth, replacement costs of larger equipment elements. Washing machine, refrigerator, stove, these devices have their life cycles and every few years one has to bear replacement costs.
From the perspective of purchase planning it is therefore worth adopting a realistic rule. To the basic monthly loan installment and administration fee, add 500 to 1000 zlotys per month of hidden costs. This gives a real picture of the total cost of owning the apartment, which is worth comparing with alternatives such as long term rental.
At Eternel we help clients see the transaction in the full cost context. Not only the purchase price and loan installment but also the full picture of maintenance over the next years. This allows financial decisions to be made on the basis of real numbers, not pious wishes. An apartment is a good investment, but only when we know exactly what we are signing up for. Knowledge of hidden cost positions is one of the foundations of a conscious purchase.