Israeli Apartment Buildings Face High Costs for Lobby Staff
Translated & summarized from Globes by baba
Residential buildings in Israel face monthly costs of NIS 58,000 to NIS 70,000 for lobby reception and concierge services, which are often mistaken for security. These expenses, excluding VAT, are distributed among residents, with smaller buildings bearing a significantly higher per-unit cost. Experts note that the role has evolved beyond basic security to include extensive resident services, with costs increasing due to rising wages and demand for higher service levels. Legal frameworks ensure these agreements are binding, and changes require resident assembly approval.
The story in 6 lines · by baba
- Lobby staff in Israeli buildings cost NIS 58,000-70,000 monthly, covering reception and concierge duties.
- Per-apartment costs for lobby staff range from NIS 300 to over NIS 2,500 monthly.
- The role has shifted from security to comprehensive resident services, increasing overall expenses.
- Rising minimum wage and salary agreements have driven up service hour costs significantly.
- Existing service agreements are legally binding on new apartment owners in shared buildings.
- Technological solutions are emerging but cannot fully replace human staff for all tasks.
The role of a "lobby guard" in Israeli residential buildings often extends beyond security to encompass reception and concierge services, according to property management experts. These staff members handle tasks like greeting residents, directing guests, and receiving packages, contributing to a sense of security but not necessarily providing professional security services. The cost of staffing a reception desk 24/7 can range from approximately NIS 58,000 to NIS 70,000 per month before VAT, according to Roi Nussbaum, CEO of Servisio Property Management. Amir Rosenblum, a consultant for building management, estimates a similar monthly cost of NIS 60,000-70,000 for continuous staffing.
This expense, which can amount to NIS 690,000-840,000 annually before VAT, is in addition to other building maintenance costs. The per-apartment cost varies significantly based on the number of units in the building. In a building with 200 apartments, the monthly cost averages NIS 300-350 per unit, while in a smaller building with 24 apartments, it can reach NIS 2,500-2,900 per unit. Higher service levels and wages for staff increase these costs, with experts noting a significant rise in service hour costs in recent years due to minimum wage increases and industry salary agreements.
Beyond basic duties, these staff members often develop personal relationships with residents, assisting with mail collection or deliveries during absences. In luxury buildings, the role can include managing access to shared facilities like pools and gyms, and handling specialized services such as refrigerated package delivery. Even without armed guards, the presence of a person at the reception desk is perceived by many residents as a significant security deterrent and a status symbol, particularly in affluent areas.
Following the October 7th attacks, there has been an increased emphasis on the sense of security provided by human presence. However, some younger residents are opting for more technologically advanced solutions like mobile-connected intercoms and advanced entry systems to reduce management fees. Legal regulations stipulate that existing service agreements are binding on new apartment owners, and changes require decisions made at general assembly meetings, with specific consent needed for modifications that alter residents' rights.
In cases of multiple adjacent towers, a centralized reception post overseeing several entrances via cameras and control systems can offer cost savings compared to separate staffing for each building. While technological solutions like virtual guards and AI systems are emerging, they cannot fully replace the human element in tasks such as receiving refrigerated deliveries or providing on-site assistance during malfunctions.