The homeowners association (HOA) costs for apartment owners have increased by about 35 percent in the past five years. The mandatory sustainability measures are leading to the sharp cost increase, reports Independer. “Especially the elderly with a small income are getting into trouble.”
An owner of a 70 square meter apartment pays an average of 161 euros per month as a contribution to the homeowners association (HOA). On an annual basis, that is more than 1,900 euros, which is 500 euros more than five years ago. Independer investigated the amounts using data from, among others, housing websites Funda and Pararius.
According to Independer, costs are rising mainly because HOAs are busy making buildings more sustainable. Owners of purchased apartments pay an HOA contribution for common service costs in addition to a mortgage and heating costs. This can include maintenance of the stairwell, but also the purchase of solar panels.
All buildings must be energy neutral by 2050 according to the government, which can lead to high costs. Some HOAs have a reserve fund from which they can withdraw money.
But if that is not the case, the costs are often passed on directly to the owners of the homes. Or a loan is taken out, which entails a monthly repayment.
One in six owner-occupied apartments has no reserve fund
“At Independer, we regularly speak to people who have difficulty paying the rising contribution,” says mortgage expert Marga Lankreijer-Kos of Independer. “Especially the elderly with a small income are getting into trouble. Think of people with only AOW or a small pension.”
One in six owner-occupied apartments would also have no reserve fund. Such an HOA savings pot has been legally required since 2018. But of the 8,000 apartments for sale that Independer investigated, more than 17 percent did not have one.