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What is meant by house rent in a condominium?
The house allowance is an important financial aspect for all owners of a condominium and members of a condominium association. These are regular payments that the owners have to make to cover the running costs of the residential complex.
Although the terms "Hausgeld" and "Wohngeld" are often used synonymously in everyday life, they refer to different concepts. In the case of housing benefit, we are talking about the payments made by homeowners for the maintenance and management of the residential complex. Housing benefit is a state social benefit in the form of a rent subsidy for low-income families.
We have already dealt with this topic in detail in our article on the subject of house rent.
When is the house rent paid - monthly or annually?
For condominiums, it is intended that the house allowance is paid per month. The house fee is therefore a monthly advance payment that the apartment owners make to the property manager of the owners' association.
At the end of the year, a detailed annual statement is drawn up, in which the actual costs are listed. Every year, the property management prepares another detailed statement of the property charges for each owner. This statement includes both fixed and consumption-based costs such as heating and water. Due to individual differences in consumption, some owners may receive a refund, while others may have to make additional payments.
This statement enables the owners to obtain an overview of the expenses incurred and, if necessary, to make adjustments for the coming year. The property management company is obliged to provide a transparent breakdown of all cost items so that every owner has the opportunity to check the accuracy of the statement. All in all, the annual statement for owners is therefore a statement that helps them to better understand and plan the running costs of their property.
The amount of the house rent: guidelines for owners
The average amount of the house rent depends on several factors. A general guideline is around 3 to 4.50 euros per square meter per month.
This results in different monthly and annual amounts for different apartment sizes. For a 50 m² apartment, for example, the house fee is between 150 and 225 euros per month, which corresponds to an annual sum of 1,800 to 2,700 euros. A 90 m² apartment, on the other hand, can expect a monthly house fee of 270 to 405 euros, which amounts to 3,240 to 4,860 euros per year.
Other factors that influence the amount of the house rent are the individual consumption of electricity and water, the equipment of the communal property such as elevators, the age of the building, the administration and maintenance costs and the maintenance requirements.
In the case of new-build apartments, it should be noted that the amount of the house fee tends to be lower in the first 5 to 10 years, as major maintenance measures are usually not required during this period. Old buildings, on the other hand, often have a higher house fee, as the need for maintenance is usually greater here.
Finally, it is important for us to emphasize that the figures given are only average values. Depending on the individual property and residential complex, the actual amount of house money may vary considerably from these guide values.
How is the house rent calculated?
The calculation of the house rent for a condominium is carried out in several steps and takes various factors into account.
Determination by the property management
The property management company first draws up a WEG business plan, which lists the expected income and expenditure for the homeowners' association. The basis for the house fee is determined on the basis of the business plan.
Maintenance reserve
Another important component of the house rent is the maintenance reserve in accordance with the WEG Act. The maintenance reserve is shown separately and is based on the age and condition of the property. The calculation ordinance provides the following guideline values for this:
- Properties under 22 years old: 7.10 euros per square meter per year
- Properties between 22 and 32 years old: 9 euros per square meter per year
- Properties over 32 years: 11.50 euros per square meter per year
Consideration of individual factors
The actual amount of the maintenance reserve and the total house fee depends on the condition and specific features of the residential complex. This includes
- Age and general condition of the building
- Existing equipment and facilities (e.g. elevator, swimming pool)
- Special maintenance requirements
Adjustment to apartment size and resolution
The calculated house fee is usually allocated to the individual owners in proportion to the living space.
Ultimately, the final amount of the house fee is decided by the community of owners and can therefore vary depending on the individual circumstances and needs of the condominium. The economic plan, which forms the basis for the house fee, is subject to a vote in the WEG. Every year, the economic plan must be put to the vote at the owners' meeting. A simple majority of the owners present is sufficient to approve the business plan.
If individual apartment owners do not agree with the proposed amount of the house fee or the maintenance reserve, they have the option of submitting an amendment. This motion also requires the approval of a simple majority of the co-owners in order to be accepted.
How is the house rent divided up?
The allocation of the monthly house fee payable as part of a condominium usually follows a fixed system based on the co-ownership share. This share is set out in the declaration of division and is usually expressed as a fraction of the common property.
An illustrative example illustrates this principle: in an apartment building with four apartments of equal size, each co-owner would bear a quarter of the total house rent.
However, the community of owners has the option of deciding on individual allocation keys for various cost items. These can, for example, take into account actual consumption or the number of people in the household.
Compared to homeowners, condominium owners have limited opportunities to influence their costs. They are bound by the majority decisions of the owners' association and cannot independently postpone major maintenance measures, such as a roof replacement.
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The components of the house rent
The house rent is made up of various components consisting of apportionable costs and non-apportionable costs.
1. apportionable costs
These costs largely correspond to the ancillary costs that can be passed on to tenants. For example:
- Waste disposal
- Water and waste water
- Power supply for communal areas
- Insurance of the building
- Heating costs (for central heating)
- Janitor service
- Cleaning of common areas
- Snow and ice removal
- Maintenance of elevators
Get more tips and information about apportionable house charges.
2. non-recoverable costs
These costs are specific to owners and cannot be passed on to tenants: These include
Costs for administration and administrators
- Fees for the account management of the community of owners
- Costs for the administrator of the WEG
Maintenance reserve
- The financial buffer for future repairs and renovations, which ensures that the entire residential complex retains its value
The total house fee therefore covers a wide range of costs that are necessary for the operation, management and long-term maintenance of the condominium property. It ensures that all necessary expenses are covered and that the quality of living is guaranteed for all owners and tenants.
Are house rent and service charges the same thing?
House charges and service charges are not the same thing, even if they cover similar items in some cases. Although the service charge includes many of the apportionable operating costs that are also included in the ancillary costs, it goes beyond this. It also includes additional payments that must be borne exclusively by the owners and may not be passed on to the tenants, such as administration costs and the maintenance reserve.
Additional costs in addition to the house rent for condominium owners
Although the house fee already covers a large part of the ancillary costs for owners of a condominium, there are other financial obligations that can also be incurred as a cost factor. These vary depending on the individual situation and use of the apartment.
Regular additional costs:
- Landowner's liability insurance: Protects against third-party claims for damages and is usually not included in the house fee
- Property tax: Is payable directly to the municipality and is calculated individually for each residential unit
- Electricity costs for the condominium: separate billing with the energy supplier
- Private internet and telephone connection: Private contracts and costs. Cable TV or antenna fees are often included in the house fee
- Broadcasting fee (GEZ fees): To be paid per household
Special features for owner-occupation:
If you use the apartment yourself, you will incur additional costs that would normally be borne by the tenant if you rented it out. These include, for example
- Heating costs (if not centrally billed)
- Water consumption in the home
- Minor repairs and maintenance in the apartment
It is important to note that the exact breakdown of costs between house fees and additional expenses can vary depending on the residential complex and the agreement of the owners' association. It is therefore advisable to carefully examine your individual situation in order to correctly calculate all costs incurred.
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House money under control? At Ralph, we understand the complexity of this issue. Our administrators have the in-depth expertise to optimally calculate and manage your property expenses. This saves you time, nerves and money. Personal support and transparent communication are a matter of course for us. Request a free quote and switch to Ralph now! You can find out more about costs under Property management costs.
