Overview of Utility Payments in Riga in May 2016
KOM-INVEST has prepared information for its clients on whether utility payments in Riga have changed over the last 2 years.
In the summer of 2014, I described what items make up the apartment invoice issued by the management company. I recommend reviewing that article here.
In this article, I will describe in detail all the items presented in the apartment invoice and explain how they are calculated.
In the photo at the top of the page, you can see an example of an invoice for a new building in central Riga. The apartment's interior area is 56.4 sq.m, and the total area including the balcony is 60.7 sq.m. The invoice was issued in April and includes meter readings for March, when heating was on for the entire month.
The total apartment bill came to 98.45 euros, and this invoice includes all items: heating, hot and cold water, electricity, elevator, parking, etc.
Let me explain in detail by line items:
1. Each building charges a monthly fixed maintenance fee.
This amount is calculated based on the apartment's square footage. The management company determines what the rate will be for each specific building, and this rate is always fixed in the service agreement. When purchasing an apartment, the buyer typically signs a service agreement and is informed of how much they will need to pay in fixed fees per square meter.
On average in Riga, the maintenance fee is 0.4 - 0.7 euros per sq.m. In luxury-class buildings, this amount can be higher. Usually only the interior area of the apartment is considered, excluding balconies and terraces, but in this case, the calculation is based on the total apartment area.
In the first line of the invoice, you can see that the apartment area is 60.700 sq.m. The maintenance rate is 0.46 euros. The monthly maintenance fee is 27.92 euros.
Over recent years, the maintenance rate in Riga has not changed; the only downside is that starting July 1, 2016, this item will be subject to VAT tax of 21%.
2. The second item is that the apartment owner has one parking space, and its maintenance costs 6.05 euros.
3. The third item is the repair fund.
Each building accumulates a minimum amount in a repair fund in case repairs are needed for the roof, entryways, common utilities, etc. The amount is calculated based on the apartment's square footage; in this case, the rate is 4 cents per sq.m.
4. The fourth item is heating of common areas, such as stairwells, hallways, etc. This item also accounts for losses in the heating system.
This item is calculated based on the interior square footage of the apartment. The total building heating expenses are divided by the total square footage of all apartments, a rate per unit area is calculated, and each apartment is charged proportionally to its area.
This item is variable because it depends on the building's total heat consumption and is measured by a meter. During summer months when there is no heating, this item does not appear.
5. The fifth item is common area water usage. This includes water used when a cleaner washes the entryway or when flowerbeds are watered, etc.
Total usage is registered by a meter; the charge is calculated based on the apartment's square footage and amounts to less than 1 cent per sq.m.
6. The sixth item is storm sewer maintenance. It is also calculated based on the apartment's square footage and amounts to less than 1 cent per sq.m.
7. The seventh item is electricity in common areas.
It is also measured by a meter and divided among residents proportionally to apartment size. It amounts to 3.41 euros per month in this case.
8. The eighth item is garbage removal, a fixed charge per apartment of 2.50 euros.
9. The ninth item is elevator maintenance, a fixed charge per apartment of 1.84 euros.
10. The tenth item is security camera system maintenance. A fixed fee is charged based on the apartment's square footage; the total monthly amount is 0.69 euros.
11. The eleventh item is apartment heating. This item is paid only during winter and is a variable amount. Each month, the management company reads the meters in the specific apartment and calculates the heating charge based on the government rate.
Each heating device in the apartment has regulators, and you can control heat consumption based on your own needs by increasing or decreasing the heating.
In this apartment, the monthly heating charge is 7.06 euros.
12. The twelfth item is hot water heating. This item is calculated based on the amount of hot water consumed in the apartment, which is measured by a meter.
In this apartment, 2.679 cubic meters of hot water were used in the month; the hot water heating rate is fixed.
13. The thirteenth item is total water consumption in the apartment.
The meter readings for cold and hot water consumption are added together and multiplied by the fixed water rate.
In this apartment, a total of 6.413 cubic meters of water were used in the month.
14. The fourteenth item is electricity consumption in the apartment. It is paid based on the meter at a fixed rate.
In this apartment, 127 kWh were consumed in the month.
Overall, the total apartment invoice including heating came to less than 100 euros, which is considered good utility payments.
The average payment in winter for a 3-bedroom apartment ranges from 120 - 150 euros, with a maximum of 200 euros; in summer it is 20 - 50 euros lower.
As you can see, the total payment greatly depends on electricity, water, and heating consumption in the apartment, so each apartment owner can to some extent control these parameters.
Over the past 2 years, all maintenance rates have remained virtually unchanged, and if you want to compare, you can review the article written in July 2014.
If you wish to purchase an apartment in Riga, the costs of maintaining it are predictable and stable in advance.
We will find the most advantageous offers for you in buildings with low utility payments. Contact our company for consultation and selection of real estate objects at the best prices.
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