What is included in the maintenance fee?Link to this section
Housing benefit items include operating costs, which can be passed on to the tenant in the case of rental. These include expenses for water, sewage, heating, caretaker, and garden maintenance. There are also expenses that cannot be passed on to the tenant, such as certain insurance policies, account fees, or property management costs. These are therefore of particular interest to owners when it comes to saving on maintenance fees.
Tips for reducing housing benefit costsLink to this section
Here are our best tips for saving on your maintenance fees:
1. Switch to a new property management company
Since property management expenses cannot be passed on to tenants, you must cover the full cost. This is where you can save the majority of your maintenance fees if you're clever about it.
However, the cheapest property management company isn't always one you can rely on 100%. As a condominium owner-occupied property owner, consider how you can limit the management services to save money without compromising on the quality of service.
The Ralph Management GmbH operates primarily digitally, but is of course also available on-site. This has the advantage that many services can be handled conveniently, quickly, and cost-effectively online. Among other things, Ralph offers a detailed overview of all the owners' association's operating costs online, which you can view at any time. Starting at just €19.99 net per month, you have an affordable yet professional property management company at your side that you can rely on.
2. Systematically obtaining quotes when commissioning tradesmen
It happens that condominium associations hire tradespeople because they either know them personally, have been using them for many years, or lack the time to compare quotes for all the work. However, this can result in higher costs.
Homeowners' associations (WEGs) are strongly advised to compare multiple quotes, and for major renovations, even more than three if possible. Your handyman may reduce his or her quote accordingly. If you blindly follow the quotes of certain companies, you run the risk of overpaying.
3. Comparison of providers for the purchase of household electricity and heating costs
Switching electricity providers or purchasing oil or gas from another company can be enormously rewarding. Sometimes simply expressing a desire to terminate the contract is enough to obtain better terms. We are happy to automatically review our properties to see if we see any potential for optimization.
4. Review of insurance policies by an external broker
It may be worthwhile to review the insurance policies taken out by the condominium association from time to time. Consolidating the insurance policies of individual owners and the association could also result in lower premiums, even if they are independent. Contact two or three insurance providers and ask for quotes, or seek free advice from an outside specialist.
5. Caretaker instead of external tradesmen
It may be worthwhile to hire a caretaker through the homeowners association to handle minor repairs, tasks like gardening, winter maintenance, and/or cleaning. If your caretaker has a certain level of manual dexterity and a few minor repairs need to be done in your property, you can quickly save significant amounts of money by avoiding the high cost of certain repairs.
6. Review of the maintenance reserve
The maintenance reserve is typically a significant cost item in the maintenance fee. It is used to cover major expenses for the common property, such as facade renovations, a new elevator, etc.
However, even though it's a significant expense, you should proceed with caution if you're thinking about reducing these payments. The amount you should save depends on the age of the property. The older the house, the more you should generally set aside. A competent property manager will analyze the amount of the maintenance reserve based on the long-term maintenance plan.
