The service charge is an often underestimated cost factor that plays a decisive role when buying a condominium and in the period thereafter. Many prospective homeowners are not aware that the monthly payment is in addition to the pure ancillary costs and secures important reserves for the maintenance of the building.
Correctly calculating the house allowance ensures that there are no nasty surprises in the long term – for both the owner and the tenant. It is therefore essential to take a close look at the composition and amount of the house fee.
The most important facts in brief
- House charges include more than just ancillary costs: they also include reserves for maintenance and administration
- Various cost factors: these include heating, water, janitor and maintenance reserves
- Not all costs can be apportioned: Management costs are borne by the owner, other items can be passed on to the tenant
- House fees vary: The amount depends on the residential complex, location and condition of the property
What is house money?
The house allowance is a monthly payment that each homeowner makes to the homeowners’ association (WEG). It covers the running costs for the administration and maintenance of the common property, such as heating, water, waste collection and janitor services.
A portion of the house fee also flows into the maintenance reserve to cover future repairs to the building (e.g. painting work in the stairwell). The house fee is a fixed amount that is calculated on the basis of the estimated annual costs and depends on the size of the apartment.
What is house rent for a condominium?
It doesn’t matter whether the apartment is owner-occupied or rented out – the house fee must be paid in both cases. However, there is a difference in the distribution of costs: while an owner-occupier pays the entire house fee themselves, a landlord can pass on certain items, such as operating costs (e.g. heating, water and waste collection), to the tenant.
What costs need to be included in the house rent?
The house allowance for a condominium is usually divided differently for each property and is agreed together with the property management. Possible components of the house fee can be as follows:
- Operating costs
- Heating, hot water supply & wastewater charges
- Cold water supply
- Garbage collection
- Street cleaning
- Building cleaning (stairwell, corridors)
- Lighting of the common property
- Chimney cleaning
- Insurance (building insurance, liability insurance)
- Janitor costs
- Remuneration of the janitor
- Minor repairs and maintenance carried out by the janitor
- Costs for garden maintenance and outdoor facilities
- Maintenance of green spaces
- Snow clearance in winter
- Maintenance of playgrounds or communal areas
- Administrative costs
- Remuneration of the property management
- Costs for administrative documents and postage
- Fees for holding the owners’ meetings
- Maintenance reserve
- Reserves for future repairs and renovations
- Expenses for major modernization measures (e.g. roof, facade)
- Contributions for the repair of common property (e.g. windows, roofs, facades)
- Maintenance costs
- Elevator maintenance
- Maintenance of heating systems
- Maintenance of fire protection systems and smoke detectors
- Maintenance of door opening and locking systems
- Other costs
- Fees for external expert opinions or legal advice
- Costs for resolutions and legal disputes within the WEG
What is the average house rent?
The contribution to the house fee is usually calculated proportionately according to the size of the apartment, usually based on the so-called co-ownership shares. This means that owners of a larger apartment generally pay a higher house fee contribution, as they bear a larger share of the common costs. These costs are distributed among all owners of the residential complex, with larger units contributing correspondingly more to cover running costs.
The average house rent in Germany is around 3.00 euros per square meter per month. These costs can vary depending on the location and condition of the property. Factors such as the building’s fixtures and fittings, the number of residential units and the general state of maintenance play a role in determining the amount of the house rent.
| Living space in m² | House rent per month (Euro) | House rent per year (Euro) |
| 30 | 90.0 | 1080.0 |
| 40 | 120.0 | 1440.0 |
| 50 | 150.0 | 1800.0 |
| 60 | 180.0 | 2160.0 |
| 70 | 210.0 | 2520.0 |
| 80 | 240.0 | 2880.0 |
| 90 | 270.0 | 3240.0 |
| 100 | 300.0 | 3600.0 |
| 110 | 330.0 | 3960.0 |
| 120 | 360.0 | 4320.0 |
Calculation: Calculate house money yourself
The calculation of the house fee is based on the costs incurred for the common property. These include the operating costs, administration costs and, in particular, the maintenance reserve, which is saved for future repairs and renovations. A key aspect of the calculation is derived from the Second Calculation Ordinance (II. BV), which serves as the basis for calculating operating costs and determining the maintenance reserve.
Components of the house rent:
- Operating costs in accordance with II. BV
The operating costs include all ongoing expenses for heating, water, electricity for communal areas, refuse collection, building cleaning, insurance and more. These are distributed pro rata among the owners in accordance with BV II.
- Maintenance reserve
According to § 28 II. BV, the maintenance reserve must be saved in order to finance major renovations or repairs to the common property (e.g. roof, facades, elevator). A reserve of approx. 0.8-1.0 euros per square meter per month is usually recommended, depending on the age and condition of the building:
- Apartment with 80 m² living space in an average building.
- Operating costs: € 3.00 per m² (monthly)
- 80 m² x € 3.00 = € 240 operating costs per month
- Maintenance reserve: € 0.90 per m² (monthly, according to II. BV)
- 80 m² x € 0.90 = € 72 reserve per month
Total house rent per month: € 240 (operating costs) + € 72 (maintenance reserve) = € 312 per month
Total house allowance per year: € 312 x 12 = € 3,744 per year
In the long term, a calculator would be good here, where you can easily enter various data to calculate the house rent
Can you pass on the house rent to tenants?
Yes, some of the house charges can be passed on to tenants, but not all costs. As a rule, only the operating costs that arise from the use of the apartment and the common property can be passed on to the tenant. These costs fall under the so-called Operating Costs Ordinance (BetrKV) and include, for example
- Heating costs and hot water supply
- Costs for waste collection and street cleaning
- Water costs and wastewater charges
- Building cleaning and janitor services
- Garden maintenance and care of outdoor facilities
- Building insurance (e.g. liability or fire insurance)
Non-allocable costs
However, there are also costs in the house allowance that the landlord must bear himself and cannot pass on to the tenant:
- Management costs: These include the remuneration of the property management or costs for owners’ meetings.
- Maintenance reserve: This is used for the long-term maintenance of the common property, such as the facade or the roof, and is borne by the owner.
- Costs for maintenance and repairs: Such expenses may also not be passed on to the tenant.
If the monthly service charge is €300, but €100 of this is for administration and the maintenance reserve, only the remaining €200 can be passed on to the tenant as operating costs. It is important that this is clearly regulated in the rental agreement and that the service charge statement is drawn up transparently in accordance with the legal requirements of the Operating Costs Ordinance.
The correct allocation of costs ensures that the tenant is not unlawfully charged and that the landlord complies with his legal obligations.
Conclusion
The house fee is an essential part of the cost calculation for condominiums and should not be underestimated. Precise planning and consideration of all relevant items, such as operating costs and the maintenance reserve, protects against financial surprises. If you calculate correctly at an early stage, you create the basis for a stable and profitable property in the long term – whether for owner-occupation or letting.
Frequently asked questions
How much house money is normal?
The amount of the house fee varies depending on the location, facilities and condition of the property, but averages between €2.50 and €4.00 per square meter per month. In cities or high-quality residential complexes, the house fee can be up to 30 percent higher, while older buildings often require higher reserves.
Is house money compulsory?
Yes, the house allowance is mandatory for all condominium owners. According to the Condominium Act, all co-owners must regularly contribute to covering the common income and expenses in order to ensure the proper operation of the residential complex.
How high should the reserve be for condominiums?
Ideally, the reserve should amount to between EUR 0.80 and EUR 1.00 per square meter per month, which is around 20 to 30 percent of the total house rent. This reserve is used for major maintenance work on the house or communal property.
Who sets the house rent?
The house fee is determined by the owners’ meeting, based on a business plan drawn up by the property manager. As a rule, the house fee is decided by a simple majority of the owners after the income and expenditure for the coming year have been reviewed.
What is included in the house rent?
The house rent includes running costs such as heating, water, garbage collection and cleaning as well as administration costs and the maintenance reserve. Some items, such as household-related services (e.g. janitor) and maintenance costs, can be partially allocated to tenants.
Can house money be deducted from tax?
Yes, certain household-related services, such as garden maintenance or janitor costs, can be claimed on your tax return. These costs reduce the owner’s tax burden if they are related to the home.
What happens if I don’t pay the house rent?
Anyone who does not pay the house rent risks legal action from the homeowners’ association. The association can claim the outstanding house payment by means of a lawsuit or compulsory enforcement, which leads to considerable financial burdens and possible restrictions on property rights.
Does the house fee play a role when buying a condominium?
Yes, the house allowance is an important factor when buying a condominium, as it represents ongoing costs that the buyer has to pay in the long term. Buyers should therefore carefully check the amount of the house fee and the accumulated maintenance reserve to avoid any nasty surprises.