Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Johannesburg's property market is included in our pack
If you're considering moving to Johannesburg or investing in property there, understanding the costs involved is crucial.
One of the key expenses to factor in is apartment maintenance fees. But what exactly do these fees cover? How much should you expect to pay? Are there ways to manage or reduce these costs?
In this article, we'll break down everything you need to know about apartment maintenance fees in Johannesburg.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the South Africa Property Pack
The Recurring Expenses When You Own an Apartment in Johannesburg
Here is a detailed overview of the maintenance fees for an apartment in Johannesburg.
- Levy Charges:
In Johannesburg, levy charges are a common expense for apartment owners. These fees cover the maintenance of common areas, security, building insurance, and sometimes water and electricity for shared spaces. Levy charges typically range from ZAR 20 to ZAR 50 per square meter per month, depending on the location and amenities of the property.
- Utilities:
Utility costs in Johannesburg include water, electricity, and sometimes gas. These are usually billed separately from the levy charges. The average utility bill for a two-bedroom apartment can range from ZAR 1,500 to ZAR 3,000 per month, depending on usage and the season.
- Reserve Fund Contributions:
Many apartment complexes require contributions to a reserve fund, which is used for major repairs and unexpected expenses. This is an additional cost on top of the regular levy charges and can range from ZAR 5 to ZAR 15 per square meter per month.
- Security Costs:
Security is a significant concern in Johannesburg, and many apartment complexes invest heavily in security measures. These costs are often included in the levy charges but can also be an additional expense. Security costs can add an extra ZAR 10 to ZAR 20 per square meter per month to your maintenance fees.
- Property Type Variations:
The type of property significantly affects maintenance fees. Luxury apartments with extensive amenities such as gyms, pools, and concierge services will have higher fees, often at the upper end of the range. In contrast, older or less centrally located properties may have lower fees. On average, maintenance fees for luxury properties can exceed ZAR 50 per square meter per month, while more modest properties might be closer to ZAR 20 per square meter per month.
Don't lose money on your property in South Africa
100% of people who have lost money in South Africa have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What You Need to Know Before Buying a Property in Johannesburg
What are the typical apartment maintenance fees in Johannesburg?
In Johannesburg, apartment maintenance fees typically range from ZAR 1,000 to ZAR 3,500 per month, depending on the size and location of the property.
These fees usually cover general upkeep, security, and communal area maintenance.
Luxury apartments or those in prime locations may have higher fees due to additional amenities and services.
How are maintenance fees calculated for apartments in Johannesburg?
Maintenance fees are generally calculated based on the size of the apartment, with larger units incurring higher fees.
Factors such as the age of the building, the number of amenities, and the level of security also influence the fee structure.
Some buildings may charge a flat rate, while others use a per-square-meter calculation.
Are maintenance fees in Johannesburg apartments negotiable?
Maintenance fees are typically set by the body corporate and are not negotiable on an individual basis.
However, owners can participate in annual meetings to discuss and vote on budget allocations and fee adjustments.
It's important to review the minutes of these meetings to understand any potential changes in fees.
Want to explore this further?
=> What is the potential rental income from Johannesburg apartments?
What do maintenance fees usually cover in Johannesburg apartments?
Maintenance fees generally cover the upkeep of common areas, security services, and building insurance.
They may also include water and sewage charges, but electricity is often billed separately to each unit.
Additional services like gym facilities, swimming pools, and concierge services can also be included in higher-end properties.
How often are maintenance fees reviewed or increased?
Maintenance fees are typically reviewed annually during the body corporate's general meeting.
Increases are often based on inflation rates, rising utility costs, and necessary repairs or upgrades.
It's common for fees to increase by 5% to 10% each year, but this can vary depending on the building's financial health.
Buying real estate in South Africa can be risky
An increasing number of foreign investors are showing interest in South Africa. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What is the impact of maintenance fees on property resale value in Johannesburg?
High maintenance fees can deter potential buyers, potentially affecting the resale value of a property.
Conversely, well-maintained buildings with reasonable fees can enhance property value by ensuring a pleasant living environment.
It's crucial to balance the cost of fees with the quality of services provided to maintain property appeal.
Want to explore this further?
=> Is an apartment in Johannesburg a good-long term investment?
Are there any additional costs associated with apartment maintenance in Johannesburg?
In addition to regular maintenance fees, owners may be required to contribute to special levies for major repairs or upgrades.
These levies are typically approved during body corporate meetings and can be significant, depending on the scope of work.
It's advisable to inquire about any upcoming projects that might require additional financial contributions.
Want to explore this further?
How do maintenance fees in Johannesburg compare to other major South African cities?
Maintenance fees in Johannesburg are generally comparable to those in Cape Town and Durban, though they can vary based on location and amenities.
On average, Johannesburg fees are slightly lower than Cape Town's, where property prices and living costs are higher.
Durban tends to have lower fees, reflecting its generally lower property prices and cost of living.
What role does the body corporate play in managing maintenance fees?
The body corporate is responsible for managing the building's finances, including setting and collecting maintenance fees.
They ensure that funds are allocated appropriately for repairs, maintenance, and improvements.
Owners can participate in body corporate meetings to have a say in financial decisions and fee adjustments.
Want to explore this further?
Can maintenance fees affect the rental yield of an apartment in Johannesburg?
High maintenance fees can reduce the net rental yield by increasing the overall cost of property ownership.
Landlords need to factor these fees into their rental pricing strategy to ensure profitability.
Properties with reasonable fees and good amenities can attract higher rents, balancing the cost of ownership.
What should I look for in a maintenance fee statement before buying an apartment?
Review the breakdown of what the fees cover, including any additional services or amenities provided.
Check for any outstanding special levies or planned increases that could affect future costs.
Understanding the financial health of the body corporate is crucial to avoid unexpected expenses.
How can I ensure that maintenance fees are used effectively in my Johannesburg apartment building?
Participate in body corporate meetings to stay informed about financial decisions and maintenance plans.
Request regular financial statements and reports to monitor how funds are being allocated and spent.
Engage with other owners to ensure transparency and accountability in the management of the building's finances.