What is meant by maintenance fees for a condominium?Link to this section
The maintenance fee is a significant financial consideration for all condominium owners and members of a condominium association. These are regular payments that owners must make to cover the ongoing costs of the condominium complex.
Although the terms "Hausgeld" and "Wohngeld" are often used interchangeably in everyday life, they refer to different concepts. Hausgeld refers to the payments made by apartment owners for the maintenance and management of the residential complex. Wohngeld is a state social benefit in the form of a rent subsidy for low-income families.
In our article on the topic House fee We have already dealt extensively with this topic.
When is the maintenance fee paid – monthly or annually?Link to this section
For condominium associations (WEGs), maintenance fees are paid monthly. The maintenance fee is therefore a monthly advance payment that the condominium owners make to the property management company of the condominium association.
At the end of the year, a detailed Annual statement , which lists the actual costs. Each year, the property management company prepares a detailed statement of the maintenance fee for each owner. This statement includes both fixed and consumption-based costs such as heating and water. Due to individual consumption differences, it may happen that some owners receive a refund while others have to pay additional amounts.
This statement allows owners to get an overview of the expenses incurred and make adjustments for the coming year if necessary. The property management company is required to transparently itemize all cost items so that every owner has the opportunity to check the accuracy of the statement. All in all, the annual statement is a statement for owners that helps them better understand and plan the ongoing costs of their property.
The amount of the maintenance fee: guidelines for ownersLink to this section
The average amount of maintenance fees depends on several factors. A general guideline is approximately €3 to €4.50 per square meter per month.
This results in different monthly and annual amounts for different apartment sizes. For example, for a 50 m² apartment, the maintenance fee is between €150 and €225 per month, which equates to an annual total of €1,800 to €2,700. A 90 m² apartment, on the other hand, can expect a monthly maintenance fee of €270 to €405, which equates to €3,240 to €4,860 per year.
Other factors that influence the amount of the maintenance fee are individual consumption of electricity and water, the amenities of the common property such as elevators, the age of the building, administration and maintenance costs, and the need for maintenance.
For new-build apartments, it's important to note that the maintenance fee tends to be lower in the first five to ten years, as major maintenance work is usually not required during this period. Older buildings, on the other hand, often have higher maintenance fees, as the maintenance requirements are generally greater.
Finally, it's important to emphasize that the figures mentioned represent only averages. The actual amount of maintenance fees can vary considerably from these guidelines depending on the individual property and residential complex.
How is the maintenance fee calculated?Link to this section
The calculation of maintenance fees for a condominium takes place in several steps and takes various factors into account.
Determination by the property management
The property management first creates a WEG business plan , which lists the expected income and expenses for the homeowners' association. The basis for the maintenance fee is determined based on the budget.
Maintenance reserve
Another important component of the house fee is the Maintenance reserve according to the WEG Act The maintenance reserve is reported separately and depends on the age and condition of the property. The Calculation Ordinance provides the following guidelines:
Properties under 22 years: 7.10 euros per square meter per yearProperties between 22 and 32 years old: 9 euros per square meter per yearProperties 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 maintenance fee depends on the condition and specific features of the residential complex. These include:
Age and general condition of the buildingExisting amenities and facilities (e.g. elevator, swimming pool)Special maintenance requirements
Adaptation to the apartment size and resolution
The calculated maintenance fee is usually allocated to the individual owners in proportion to the living space.
Ultimately, the final amount of the maintenance fee is decided by the homeowners' association and can therefore vary depending on the individual circumstances and needs of the condominium association. The budget, which forms the basis for the maintenance fee, is subject to approval by the condominium association. The budget must be approved annually by the condominium association. Owners' meeting A simple majority of the owners present is sufficient for the business plan to be adopted.
Should individual apartment owners disagree with the proposed amount of the maintenance fee or the maintenance reserve, they have the opportunity to submit a motion to amend it. This motion also requires the approval of a simple majority of the co-owners to be accepted.
How is the maintenance fee divided?Link to this section
The allocation of the monthly maintenance fee as part of a condominium association (WEG) generally follows a fixed system based on the co-ownership share. This share is determined by the Declaration of division and is usually expressed as a fraction of the common property.
A clear example illustrates this principle: In an apartment building with four equally sized apartments, each co-owner would pay a quarter of the total maintenance fee.
However, the homeowners' association 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 options to influence their costs. They are bound by the majority decisions of the homeowners' association and cannot independently postpone major maintenance measures, such as roof replacement.
The components of the house feeLink to this section
The maintenance fee is made up of various components, which include apportionable costs and non-apportionable costs.
1. Allocable costs
These costs largely correspond to the additional costs that can be passed on to tenants. For example:
Waste disposalWater and wastewaterPower supply for common areasInsurance of the buildingHeating costs (with central heating)Caretaker serviceCleaning of common areasSnow and ice removalElevator maintenance
Get more tips and information about apportionable house fee .
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 homeowners associationCosts for the administrator of the WEG
Maintenance reserve
The financial buffer for future repairs and renovations, which ensures the value retention of the entire residential complex
The maintenance fee thus encompasses a broad spectrum of costs required for the operation, management, and long-term maintenance of the condominium property. It ensures that all necessary expenses are covered and the quality of life is maintained for all owners and tenants.
Are maintenance fees and additional costs the same thing?
Maintenance fees and additional costs are not the same, even though they cover some similar items. While maintenance fees include many of the apportionable operating costs that are also included in additional costs, they go beyond them. They also include additional payments that must be borne exclusively by the owners and may not be passed on to the tenants, such as administrative costs and the maintenance reserve.
Additional costs in addition to the maintenance fee for apartment ownersLink to this section
Although the maintenance fee already covers a large portion of the additional costs for condominium owners, there are additional financial obligations that may arise as an additional cost factor. These vary depending on the individual situation and use of the apartment.
Regular additional costs:
Landowner liability insurance: Protects against third-party claims for damages and is usually not included in the maintenance feeproperty tax: Is to be paid directly to the municipality and is calculated individually for each residential unitElectricity costs for the condominium:Separate billing with the energy supplierPrivate internet and telephone connection: Private contracts and costs. Cable TV or antenna fees are often included in the maintenance fee.Broadcasting fee (GEZ fees): To be paid per household
Special features for self-use:
If you use the apartment yourself, additional costs arise that would normally be borne by the tenant if you rented it out. These include, for example:
Heating costs (if not billed centrally)Water consumption in the apartmentMinor repairs and maintenance in the apartment
It's important to note that the exact breakdown of costs between maintenance fees and additional expenses can vary depending on the complex and the homeowners' association agreement. Therefore, a careful review of your individual situation is advisable to correctly factor in all costs.
Do you already know Ralph?
Keeping your maintenance fees under control? At Ralph, we understand the complexity of this topic. Our managers have in-depth expertise to optimally calculate and manage your maintenance fees. This saves you time, stress, and money. Personal support and transparent communication are a matter of course for us. Feel free to request a quote. a free offer and switch to Ralph now! Learn more about costs at Property management costs .
