The house maintenance fee statement – what is it?Link to this section
The house maintenance fee statement, also known as the WEG statement,provides apartment owners with information about all payments made by the condominium association. This way, you can find out what your maintenance fee has been used for and whether you still have to pay additional operating costs or whether you will receive reimbursements. The property management company is responsible for preparing the maintenance fee statement.
What is the house fee?
The maintenance fee is a monthly advance payment made by the owners. It is comparable to the advance payment for utility costs made by tenants, but includes additional items and is higher. The maintenance fee for your apartment is paid into a joint condominium association account and is intended to cover the ongoing costs of the property. Thus, the maintenance fee is a provision for future expenses.
ImportantWhen purchasing a condominium, you should consider not only the purchase price and financing, but also the monthly maintenance fee. This can significantly impact your monthly expenses.
What are the items on the maintenance fee statement?Link to this section
The house maintenance statement provides an overview of all income and expenditure of the Homeowners association It transparently lists whether and what additional payments or reimbursements are due for the owners. In short: The maintenance fee statement is essentially a utility bill for owners.
There is no formal template for the maintenance fee statement, which is why the maintenance fee statements can look different from property management company to property management company.
However, the following contents must be mentioned on a maintenance fee statement:
All expenses and income of the WEG for the financial yearReserves and account balancesIndividual billing for each apartment ownerThe distribution key used
The individual items of the maintenance fee are allocated to the owners according to a specific distribution key in order to determine the individual maintenance fee payments.
Total billing vs. individual billingLink to this section
The billing of the house fee can be divided into a total billing and an individual billing.
The overall billing
The overall statement of maintenance fees provides a comprehensive overview of the financial activities of the condominium association during the past fiscal year. It includes:
Revenue:Maintenance payments:Regular contributions from owners to cover common costs.Rental income:Income from the rental of shared property (e.g. commercial units).Interest income:Income from invested reserves.Expenditure:Maintenance:Costs for repairs, renovations and modernizations of common property.Operating costs:Costs for heating, water, electricity, waste disposal and other ongoing operating costs for communal areas (e.g. stairwell, basement).Administrative costs:Property management costs, including fees, wages, and insurance.Insurance:Costs for building insurance, liability insurance and other insurance for the common property.Reserves:Feeders:Amounts allocated to the maintenance reserve.Withdrawals:Amounts withdrawn from the maintenance reserve (e.g. for major repairs).
The overall statement shows how the community's money was received, what it was spent on, and how the reserves developed.
The individual billing
The individual housing allowance statement refers to each apartment owner and shows how the total costs are distributed among each apartment owner. It contains information about:
Advance payments:The maintenance payments made in the past year are listed in detail.Cost distribution:Each owner recognizes his or her individual share of the total costs.Additional payments/credits:It will be clear whether any amounts still need to be paid or whether a refund will be made.Future payments:The amount of future advance payments will be adjusted based on the current billing.
The individual billing allows each owner to track his/her personal financial contribution to the communal costs.
Who pays the maintenance fee?Link to this section
The condominium association contributes a proportion of the maintenance fee. The respective share is determined based on the co-ownership share (MEA) of each owner. In some cases, a different allocation key has been adopted in the past, which is used in the maintenance fee statement. The allocation key used is always listed on your statement.
The property management is responsible for preparing the house maintenance statementLink to this section
According to § 28 WEG, the property management of the WEG is responsible for calculating the maintenance fee and for posting this on the Owners' meeting The property management must also be available to answer any questions. Owners will receive both a total bill and their individual bills. The individual bills will indicate whether there are any additional payments or refunds.
Tip: If your property management repeatedly delays the preparation of the house maintenance fee statement or if the statement frequently contains serious errors, this is a valid reason to to change property management. Delayed maintenance fee statements entitle condominium owners to terminate the property management contract with immediate effect.
How much is the maintenance fee?Link to this section
The amount of the maintenance fee varies and depends on the individual characteristics of the property. These include the energy source, the state of renovation, the location of the building, the region, the year of construction, the size, and many other factors. The presence of special features such as elevators or security cameras can also affect the amount of the maintenance fee.
The amount of the maintenance fee varies depending on the residential complexLink to this section
The amount of the maintenance fee depends on various factors. Each property has its own characteristics that directly impact the maintenance fee. Here are the most important factors that influence the amount:
Location: Urban areas vs. rural regionsAttractiveness of the location: Popular areas may incur higher costsAge of the property: Older buildings can entail increased maintenance costsBuilding size: Extensive facilities such as underground car parks or outdoor facilities increase costsTechnical equipment: Special facilities such as elevators or security systems increase the maintenance fee
Overall, you can expect to pay maintenance fees of between 3 and 4.50 euros per square meter per month for your condominium.
No legal deadline for the maintenance fee, but usually by the end of June at the latestLink to this section
There is no statutory deadline for preparing the maintenance fee statement. According to the law governing the annual statement of condominium owners, it must be prepared "after a reasonable period of time following the end of the financial year." This usually takes three to six months. Ultimately, owners must be given sufficient time to prepare the utility bills for their tenants before the end of the year.
You will usually receive your maintenance fee statement along with the invitation to the annual owners' meeting. At the owners' meeting, you can then decide on the maintenance fee statement and the maintenance reserve. Additional payments and refunds are only due after the maintenance fee statement has been approved. Learn more here. Our 5 best tips for saving on house money .
Maintenance fee vs. utility bill: What's the difference?Link to this section
As an owner of an apartment in a homeowners' association, you frequently encounter the terms "service fee statement" and "utility charge statement." What is the difference between them?
Here's a simple tip: When calculating maintenance fees, property managers usually distinguish between:
Transferable costs:As a landlord, you can pass these costs on to your tenants and include them in the annual utility bill. Typical items include heating costs, water, and garbage disposal fees. These are included in the annual utility bill to your tenants.Non-transferable costs:As the landlord, you are responsible for these costs yourself. These include, for example, administrative costs, insurance costs, or reserves for major repairs. These costs are not to be shared with the tenants.
While theHousekeeping statement Your personal annual statement as an owner is the utility billfor your tenants. It is based on your maintenance fee and shows the additional costs attributable to the tenants.
Maintenance fee vs. annual statement: What's the difference?Link to this section
The annual statement is also an important document for your homeowners' association. It provides a detailed overview of the finances for the past twelve months. In addition to expenses for current items such as cleaning and maintenance, it also shows how reserves have developed. The annual statement for your homeowners' association typically includes the following items:
revenue
Maintenance payments:The regular payments of all apartment owners to cover the common costs.Rental income:If the condominium has rental properties, the rental income is listed here.Interest income:Income from invested reserves or short-term investments.Income: All other income that does not fall into the above categories.
expenditure
Maintenance:Costs for repairs, renovations and modernizations of the common property.Operating costs:Costs for heating, water, electricity, garbage disposal and other ongoing operating costs.Administrative costs:Costs for the condominium administrator, including fees, wages, and insurance.Insurance:Costs for building insurance, liability insurance and other insurance.Cleaning/Gardening:Costs for cleaning common areas and maintaining gardens.Other expenses:All other expenses that do not fall into the above categories.
Development of the maintenance reserve
Opening inventory:The balance of the reserve at the beginning of the financial year.Feeders:Amounts added to the reserve during the year (e.g. from the house fee).Withdrawals:Amounts withdrawn from the reserve (e.g. for major repairs).Closing balance:The balance of the reserve at the end of the financial year.
Account balances of apartment owners
Advance payments:The advance payments made by the owners towards the maintenance fee.Actual cost shares:The share of the total costs attributable to each owner.Additional payments/credits:The amount that the owner must pay or that is credited.
Balance sheet
Overview of the overall financial situation of the WEG:A clear presentation of the income, expenses and assets of the WEG.
Attachment
Detailed breakdown of costs:A detailed list of all individual costs with corresponding receipts.Minutes/resolutions of the owners’ meeting:Minutes of the owners' meetings in which decisions were made about the use of the funds.
What should I do if my maintenance fee bills are late and/or incorrect?Link to this section
One of the legal obligations of every property management company is to prepare an annual maintenance fee statement and present it for approval at the owners' meeting. This is stipulated in Section 28, Paragraph 3. WEG Act If your current property management fails to fulfill this obligation, this is grounds for immediate termination. We would be happy to advise you individually on this matter. As a property owner, you have a right to receive the property management statement, which you can assert in court if necessary.
To rule out an incorrect housing allowance statement, you may check the contents for the following points:
Do the expenses and bills actually belong to your condominium?Is the recipient of the invoice correct?Are the figures correct?Do the costs match the invoices?Were the postings assigned to the correct general ledger accounts?Was the offered discount for quick order placement taken advantage of (cash discounts)?Are there any costs that can still be passed on?Were non-recoverable costs passed on?Are the advance payments correct?
Let Ralph prepare your house maintenance statementLink to this section
With Ralph, the arduous search for a suitable property management company has come to an end. Potential errors in the maintenance fee statement, such as incomplete or incorrect breakdowns of costs and income, incorrect allocation keys, or missed deadlines in the preparation of the maintenance fee statement, are now a thing of the past.
We automate many of the repetitive processes of property management using state-of-the-art software and on-site expertise. This ensures high efficiency and maximum transparency, and we're even more affordable than other property management companies.
Are you interested in this offer? Further information about our services, extras, and costs can be found on our information page. Property management costs .
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