Apartment Elevators and Property Values

Why Cost Transparency Determines Your Asset Price

Many apartment owners don't realize that the condition and maintenance of elevators significantly impact the value of their property. Elevators are not just a means of vertical transportation, but an integral part of the residential experience. Frequently broken, slow, or poorly maintained elevators will inconvenience residents, causing potential tenants to hesitate before signing a lease.

In fact, legally, the management of operational costs, including elevators, is clearly regulated in Government Regulation No. 13 of 2021. This means that owners and tenants not only have the right to pay but also the right to know where their money is being spent.

Elevators: Silent Factors that Determine Rental Value

When people evaluate apartments, they typically look at location, unit size, and amenities. But in practice, the most common consideration is the elevator.

Imagine two apartments with identical specifications:

• Apartment A: The elevator frequently breaks down, the lines are long, and it often shuts down unexpectedly.
• Apartment B: The elevator is fast, clean, rarely breaks down, and is always well-maintained.

Rental prices can vary significantly. Renters prefer daily convenience over mere amenities. If elevator problems persist, then:

• Tenants are reluctant to renew their contracts.
• Prospective tenants are choosing other buildings.
• Occupancy rates are dropping.

Ultimately, it is the owners who suffer the most because the rental value and selling value of the units also decrease.

Legal Basis: Government Regulation No. 13 of 2021 and Owner's Rights

In Government Regulation No. 13 of 2021, Article 78 regulates the management of apartment buildings. In essence:

1. Managers can collaborate with other parties (individuals or legal entities).
2. Managers are entitled to receive management fees.
3. These fees are charged to owners or residents for:
   • operational costs,
   • maintenance,
   • care.
4. These costs must be managed in an orderly, effective, efficient, transparent and responsible manner.

This means that elevator costs—whether for routine maintenance, replacement parts, or vendor contracts—should not be managed in a secret way.

Owners and occupants have the right to know:

• How much does the elevator cost per month?
• Who manages the elevator?
• How is the tender process conducted?
• What is included in the elevator maintenance contract?

This is not just curiosity, but a legal right.

Why Elevator Transparency Determines Asset Value

An elevator that breaks down frequently usually indicates two things:

1. Maintenance is substandard.
2. Budgets are not being used optimally.

If the elevator costs a lot but the quality is poor, it means there is a problem in:

• vendor selection,
• work oversight,
• or financial transparency.

The impact is direct to the owner:

• Units are difficult to rent.
• Rental prices must be lowered to sell.
• Unit resale values ​​are stagnant or declining.

On the other hand, if the elevator management is transparent and professional:

• Tenants feel safe and comfortable.
• The building's reputation improves.
• Rental rates can be maintained or increased.
• Long-term asset value is more stable.

Broken Elevator = Financial Risk for Owner

Elevator problems aren't just technical, they're also financial.

If the elevator breaks down frequently:

• Tenants complain and move out.
• Units remain vacant for longer.
• Landlords lose regular income.

In the long term:

• Investors avoided the building.
• Unit market prices fell.
• The previous owner had difficulty selling at a good price.

It all stems from one thing: unprofessional and non-transparent elevator management.

Owner's Right to Know Lift Contracts and Tenders

Since the elevator costs come from the owners and residents, they have the right to know:

• The elevator vendor selection process.
• Is the tender open?
• Is there a price comparison?
• What is the value of the maintenance contract?

Jika semua tertutup, maka prinsip dalam PP No. 13 Tahun 2021—transparan dan bertanggung jawab—tidak dijalankan. baca juga terkait transparansi perawatan lift disini:  Apartment Elevator Maintenance Transparency.

Owners should actively ask through PPPSRS:

• Request an elevator cost report.
• Request a copy of the vendor contract.
• Request an explanation for frequent elevator breakdowns.

This is not an attitude of suspicion, but an attitude of protecting assets.

Linking the Elevator to the Apartment Management System

Elevators don't stand alone. They're part of the overall apartment management system: from management and vendors to oversight by the PPPSRS.

To fully understand how elevators should be managed—from systems, costs, maintenance, to governance—read our ultimate guide here.: Apartment Elevators – A Complete Guide to Systems, Costs, and Management.

Conclusion: Maintaining Elevators Is the Same as Maintaining Asset Value

Many owners only realize this when it's too late: units are difficult to rent, prices are dropping, and the building's reputation is damaged. Yet the root of the problem is often simple: poorly maintained elevators.

By understanding their rights under Government Regulation No. 13 of 2021, owners should be more proactive in demanding:

• cost transparency,
• contract transparency,
• and elevator maintenance quality.

A well-maintained elevator isn't just about comfort, it's a long-term investment. Maintaining your elevator means preserving the value of your own asset.