Dublin city council is paying management fees of up to €3,000 euro a year per apartment for social housing tenants in private developments.
The bill for next year is expected to hit 2.7 million euro.
Developers who build more than 10 homes are required to sell 10 percent of the units to their local authority.
While the council pays a discounted rate it is still required to pay annual fees to management companies.
According to the Irish Times, these charges range from €235 euro to just under €3,000 per apartment for Dublin city council. The average is €1,800.
Next year the total bill is expected to hit at 2.7 million euro for 1,500 properties.
Social housing tenants pay a flat fee of €2 a week, however those living in homes and apartments built by the council do not pay a charge.
The paper reports that the council has been paying more than €23,000 a year for eight units in one complex since 2013.
The bill for management fees is expected to rise over the next number of years as more apartments are built in Dublin.