Are you a homeowner and wondering whether the maintenance fee can be passed on to the tenants? There are generally apportionable costs that you don't have to bear yourself. We'll explain which costs are apportionable and what you should be aware of.
Cost factor: What is the maintenance fee and who has to pay it?Link to this section
The maintenance fee is a type of additional cost for apartment owners. It serves to cover the communal costs for the care, maintenance, and administration of the entire building. The maintenance fee is paid monthly in advance into the account of the condominium owners' association (WEG). The amount of the maintenance fee depends on various factors, such as the size of the property, the age of the building, and the number of residential units. Once a year, there is a Housekeeping bill .
The house maintenance fee statement
The annual maintenance fee statement is prepared by the property management company and provides information on all financial transactions within the condominium association. At the end of the year, an account is drawn up to determine whether more or less money was spent than planned. It therefore shows in detail what income was generated from maintenance fee payments. It also presents the development of the maintenance reserve. At the end of the maintenance fee statement, it is determined whether the owners will receive any money back or whether they have to pay additional amounts.
Passing on house fees to tenants: The legal basis for apportionable house feesLink to this section
If you, as a property owner, are concerned about passing on the maintenance fee to the tenants, you have to consider two points: firstly, your obligation to pay maintenance fee to the condominium association, and secondly, the possibility of passing on part of the maintenance fee to the tenants if you have rented out your property.
The house fee: The legal basis for apartment owners
As a homeowner, you are subject to Section 16, Paragraph 2, Sentence 1 Condominium Act (WEG) is obligated to contribute to the WEG's costs in accordance with their ownership share. Get the most important information on this topic in our article on maintenance fees.
The legal basis for apportionable house money
According to Section 556 of the German Civil Code (BGB), landlords and tenants may agree that the latter will bear the operating costs (utility costs) of their rented apartment. If such an agreement is included in the rental agreement, a portion of the maintenance fee may be passed on to the tenants.
Which costs of the maintenance fee are apportionable?Link to this section
As you can see from Section 556 of the German Civil Code (BGB), there is an important prerequisite for certain maintenance fees to be apportionable: They must be incurred regularly. In this case, you can pass the maintenance fees on to tenants. However, there are also costs that arise regularly but are nevertheless not apportionable or are disputed, such as the removal of graffiti.
Pass on house fees to tenants: Observe the rental agreement, operating costs regulations and heating costs regulationsLink to this section
Which costs can actually be passed on is primarily regulated by the rental agreement between landlord and tenant.
You may only pass on to tenants those expenses that are explicitly listed in the rental agreement. These usually also include a reference to the currently valid version of the Operating Costs Ordinance and the Heating Costs Ordinance. The Operating Costs Ordinance serves as a guideline to determine which parts are generally eligible for allocation. For example, many rental agreements contain phrases such as "The tenant shall bear the additional costs in accordance with Section 2 of the Operating Costs Ordinance."
However, this does not mean that all costs listed in the regulation can automatically be passed on to the tenants. Rather, these costs must always be specifically stated in the rental agreement. If you are unsure whether and which costs of the maintenance fee are apportionable, it is always worth consulting the Operating Costs Regulation and the Heating Costs Regulation.
In particular, the following regularly incurred expenses can be passed on to the tenants:
Ongoing public charges on the property, for example property taxCosts of water supplyCosts of house and property drainageCosts for central heating systemsCosts for central hot water supply systemsConnected heating and hot water supply systemsCosts for passenger and freight elevatorsCosts of street cleaning and garbage disposalCosts of building cleaning and pest controlCosts for garden maintenanceLighting costsCosts for chimney cleaningProperty and liability insuranceCosts for the caretakerCosts for the community antenna systemCosts for laundry facilitiesother operating costs within the meaning of Section 1
In total, there are 17 apportionable cost items from the housing association fee that can easily be passed on to the tenants.
Even if the Operating Costs Ordinance is mentioned in the rental agreement, it does not necessarily have to be included as an appendix. It is sufficient if the cost items listed in the contract comply with the regulations. However, it is important that you do not use blanket formulations, but rather specifically state all apportionable parts of the maintenance fee. A formulation such as "The tenant bears the additional costs" is too vague and does not provide the tenant with sufficient clarity about which costs they will actually incur.
Tip:Even if property tax is not included in the maintenance fee, it can still be passed on to tenants via the utility bill.
Which maintenance costs cannot be passed on to tenants?Link to this section
However, not all costs included in the maintenance fee are apportionable. Certain items cannot be passed on to tenants. These are expenses that are related to the rental but not directly related to the tenant's management of the apartment.
These include, for example, the maintenance reserve, which is intended to be saved for major repairs or modernization measures. These items are usually invested separately by the owners in a joint account.
Repair and renovation costs such as painting or roof repairs cannot be directly included in the apportionable costs. In addition, there are administrative costs such as account fees for the condominium association account and property management costs. These must also be borne and accounted for separately by the owners. It is important that appropriate resolutions are passed at the owners' meeting and that a clear regulation is established regarding how these costs are to be distributed.
Note:The allocable house fee with all cost items is listed in the operating costs catalogue of §2 Works Association Statutory Health Insurance recorded.
Pass on special levies to tenants?Link to this section
Special levies are generally not reimbursable. This additional cost type is used to finance measures such as extensive renovation work or the purchase of new communal facilities. These costs also typically arise when unforeseen or particularly costly measures are required.
If you, as a homeowner, have to incur larger expenses that cannot be covered by the regular maintenance fee, you may levy a special levy. The decision to impose a special levy is usually made at your homeowners' association (WEG) meeting. You must pass a resolution that specifies the amount of the special levy and how the funds will be used. A detailed cost plan forms the basis for calculating the special levy.
In these cases, a special levy is usually decided:
There is not enough money in the house money account because the budget is too tightMajor purchases are planned for the property, but the maintenance reserve is not sufficientCo-owners have not paid the maintenance fee. The special levy serves to compensate for these maintenance fee shortfalls.
What should I do if the costs for the special levy are too high?
A special levy can pose a financial challenge for individual owners. If, despite all efforts, an owner is unable to pay their share of the special levy, legal consequences may arise. To avoid this, it is advisable to seek a solution early on. Through open discussions and a certain degree of flexibility, solutions can certainly be found that are fair to everyone. To keep the condominium association together, it is important to address individual situations.
In particularly serious cases, it may be necessary to clarify the ownership situation, i.e., sell the unit, in order to meet the payment. However, this should always be considered a last resort.
Maintenance fees for vacant properties: What applies?
Even if a condominium is vacant, the owner must continue to pay the maintenance fee. This applies regardless of the condominium's condition. However, refunds may be due on the annual statement if certain costs are billed based on usage.
Maintenance fees for new buildings are often lower
In the first few years after completion, maintenance fees for new homes are generally lower. This is because there are usually no major maintenance costs during this phase. Structural defects are remedied by the developer during the warranty period, and the building structure is still very new. However, costs can increase over the years when the first major maintenance measures are required.
Deduct house fees from taxesLink to this section
As a landlord, you can deduct a portion of your maintenance fee from your taxes. Costs that you incur yourself and don't pass on to your tenants are considered business expenses. However, only amounts already spent are deductible. This means you can only claim your maintenance reserve once the property manager has actually used it.
Housekeeping fees are apportionable: How much is the housekeeping fee?Link to this section
You already know the apportionable costs, but how much of the maintenance fee do tenants actually pay? As a general rule, about 60 percent of the maintenance fee consists of apportionable costs that you can pass on to the tenants.
However, this can vary considerably depending on the homeowners association, as the following two examples illustrate:
If the property is well insulated, the landlord saves money and costs are reduced.
If the property needs to be renovated soon, the maintenance fee may increase as the owners are currently saving up maintenance reserves.
Conclusion Transferring house maintenance fees: What you need to knowLink to this section
The maintenance fee allows landlords to pass on certain expenses associated with managing a property to tenants. These expenses include, for example, water, heating, garbage collection, or janitorial services. This distribution of costs ensures that each resident contributes a fair share.
It's important for landlords to bill maintenance fees transparently and accurately to avoid legal disputes and build tenant trust. Tenants, in turn, benefit from a clear presentation of utility costs, which helps them better plan their monthly expenses.
Keep track of all allocable costs – Ralph helps youLink to this section
As a homeowners' association, it's advisable to always keep an eye on the maintenance fees and be aware of the costs involved. Transparent communication and good property management can be helpful in this regard – also to avoid potential disagreements and maintain a harmonious homeowners' association.
Compared to traditional property management companies, at Ralph we use modern software and digital platforms to automate and simplify administrative tasks. This makes the management process related to property management faster and more efficient. We also place great emphasis on customer service and offer solutions tailored to the needs of property owners. Learn more about our Property management costs to learn more about us.
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