By Paola Solis
El Inmobiliario
SANTO DOMINGO – Maintenance costs in shopping centers and condominiums in the National District have risen significantly in recent times. These increases, ranging from 10% to 50%, are attributed to factors such as the rise in electricity prices and the hiring of Dominicans, who have had to replace Haitian labor, according to specialists in the field.
“Many foreign employees have had to be laid off, and the need arises to hire Dominicans, who are more expensive, and must be hired by law; this includes vacations, double salary, payment to the Social Security Treasury (TSS), among other expenses intrinsic to formal employees,” explained Alenny Garabito, CEO of Time Homes Inmobiliaria, which provides condominium management services.
Indira Desangles, of Desangles Properties, an entity specializing in commercial and corporate real estate, cites the rise in electricity costs and personnel-related expenses as the main causes behind these increases.
He points out that “in places where the price per square meter was $4 or $5, it is now $6 or $7; places that were $6 or $7 are now $8 or $9,” he said.
Kathleen Santana, from KML Inmobiliaria, says that in the residential sector there has been an increase of between 10% and 40%, maintaining that fixed expenses such as payments to service companies (Edesur, CAASD, City Hall), as well as staff salaries, represent the biggest burden within the maintenance budget.
The condominium management specialist also added that factors such as inflation, equipment maintenance, and additional services like cistern cleaning, painting, and camera systems have contributed to this price increase
Garabito agrees with this assessment and estimates that the increase in maintenance costs has been between 20% and 30%. Among the main causes, he highlights the increase in salaries for staff and contractors, as well as the replacement of foreign employees with formally employed Dominican personnel, which raises expenses related to benefits, social security, and labor-related expenses
It also notes that up to 50% of the budget can be allocated to paying management companies, which has led some residents to opt for managing the administration internally to reduce costs.
Endurance
Faced with this situation, the owners' reaction has been one of resistance. “The increases are not well received. That's why we try to raise awareness about the need for adjustments to preserve the quality of services. In some cases, we apply extraordinary fees to cover variable monthly expenses,” Santana commented.
Although they emphasize that complaints have been frequent at the assemblies, the real estate management specialists acknowledge that some of the condominium owners have understood that these increases are more a response to the economic situation than to administrative decisions.
They point out that in some cases, residents have observed improvements in cleanliness and security, such as the inclusion of new security guards and cameras, but in others no significant changes have been implemented, which has generated divided opinions about the fairness of the increase.
The professionals agree on the importance of transparency in billing and the need to adjust budgets periodically so that costs correspond to the actual needs of each space. Their common goal, they point out, is to maintain the quality of life in residential complexes and the operational efficiency of public spaces without compromising the financial sustainability of owners or tenants.
Cover photo: Justo Feliz/El Inmobiliario.
