Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
If you're considering moving to Milan or investing in an apartment there, understanding the maintenance fees is crucial.
What do these fees cover? Are they expensive? How do they compare to other cities?
In this article, we'll break down everything you need to know about apartment maintenance fees in Milan.
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 Italy Property Pack
The Recurring Expenses When You Own an Apartment in Milan
Here is a detailed overview of the maintenance fees for an apartment in Milan.
- Condominium Fees:
In Milan, condominium fees are a significant part of apartment ownership costs. These fees cover the maintenance of common areas, building management, security, and shared utilities. The average cost ranges from €20 to €50 per square meter per year, depending on the building's location, age, and amenities. Luxury properties with extensive facilities can incur higher fees.
- Heating Costs:
Many buildings in Milan have centralized heating systems, and the cost is typically included in the condominium fees. However, in some cases, heating is billed separately based on usage. The average cost for heating can range from €5 to €15 per square meter annually, influenced by the building's energy efficiency and the severity of the winter season.
- Water and Waste Disposal:
Water and waste disposal services are usually included in the condominium fees, but in some cases, they might be billed separately. The average cost for these services is approximately €1 to €3 per square meter per year. This cost can vary based on the building's water usage policies and waste management practices.
- Property Taxes:
Property taxes in Milan, known as IMU (Imposta Municipale Unica), are an essential consideration for apartment owners. The tax rate typically ranges from 0.4% to 0.76% of the property's cadastral value. The exact rate depends on the property's classification and the local municipality's regulations.
- Insurance Costs:
Apartment owners in Milan are advised to have insurance coverage for their property. The cost of insurance can range from €100 to €300 annually, depending on the coverage level and the property's value. Insurance typically covers damages from natural disasters, theft, and other unforeseen events.
Don't lose money on your property in Italy
100% of people who have lost money in Italy 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 Milan
What are the typical apartment maintenance fees in Milan?
In Milan, apartment maintenance fees can vary significantly depending on the location and amenities of the building.
On average, these fees range from €1,500 to €3,000 annually for a standard apartment.
Luxury apartments with additional services can see fees exceeding €5,000 per year.
How are maintenance fees calculated for apartments in Milan?
Maintenance fees are typically calculated based on the size of the apartment and the shared amenities available in the building.
Factors such as the presence of a doorman, elevators, and communal gardens can increase the fees.
Each apartment owner pays a proportionate share of the total building maintenance costs.
What services are usually covered by apartment maintenance fees?
Maintenance fees generally cover the costs of cleaning and maintaining common areas such as hallways, lobbies, and gardens.
They also include expenses for utilities in shared spaces, like lighting and water.
Some buildings may include additional services like security, concierge, or gym facilities in their fees.
Want to explore this further?
Are there any additional costs not covered by maintenance fees?
Yes, maintenance fees typically do not cover individual apartment utilities such as electricity, gas, and water.
Homeowners may also need to pay for their own property taxes and insurance separately.
Occasionally, special assessments may be levied for major repairs or upgrades to the building.
Want to explore this further?
How often are maintenance fees reviewed or adjusted?
Maintenance fees are usually reviewed annually by the building's homeowners' association or management company.
Adjustments are made based on the previous year's expenses and any anticipated increases in costs.
Significant changes in fees are typically discussed and approved during annual meetings of the apartment owners.
Buying real estate in Italy can be risky
An increasing number of foreign investors are showing interest in Italy. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What is the average cost of special assessments in Milan?
Special assessments can vary widely, but they often range from €500 to €2,000 per apartment, depending on the scope of the project.
These assessments are typically used for major repairs or improvements, such as roof replacements or elevator upgrades.
Owners are usually notified in advance and may have the option to pay in installments.
How do maintenance fees in Milan compare to other Italian cities?
Maintenance fees in Milan are generally higher than in smaller Italian cities due to the higher cost of living and property values.
For example, fees in cities like Turin or Bologna might be 20% to 30% lower on average.
However, fees in Milan are comparable to those in other major cities like Rome.
Want to explore this further?
Can maintenance fees affect the resale value of an apartment?
High maintenance fees can sometimes deter potential buyers, especially if they are significantly above the average for the area.
However, well-maintained buildings with comprehensive services can justify higher fees and potentially enhance property value.
Buyers often weigh the fees against the benefits and amenities provided by the building.
Are there any tax benefits associated with maintenance fees in Milan?
In some cases, certain maintenance expenses may be deductible from your taxable income, depending on Italian tax laws.
It's advisable to consult with a local tax advisor to understand which portions, if any, are eligible for deductions.
Documentation and receipts are typically required to claim any tax benefits.
Want to explore this further?
What happens if a homeowner fails to pay their maintenance fees?
If a homeowner fails to pay their maintenance fees, the building's management may impose late fees or interest charges.
Persistent non-payment can lead to legal action and potentially a lien on the property.
It's crucial to address any payment issues promptly to avoid these consequences.
How can I find out the maintenance fees for a specific apartment before purchasing?
Prospective buyers should request a breakdown of the current maintenance fees from the seller or real estate agent.
This information is typically included in the property's financial documents or the building's annual budget report.
Reviewing these documents can provide insight into the building's financial health and any upcoming assessments.
Are there any ways to reduce maintenance fees in Milan?
Reducing maintenance fees often requires collective action by the building's homeowners to renegotiate service contracts or reduce expenses.
Implementing energy-saving measures, like LED lighting or solar panels, can also help lower utility costs.
Active participation in the homeowners' association can provide opportunities to influence budget decisions and cost-saving initiatives.