The WEG statement of a Homeowners association , also known as the annual statement or maintenance fee statement, provides a comprehensive overview of the financial activities of the condominium association. It is therefore an income and expenditure statement for the past fiscal year. It may also include additional information such as an economic report or a list of outstanding receivables to provide a more comprehensive picture of the financial situation.
In our article on the topic Housekeeping bill you will find further information.
The purpose of the WEG statement: A transparent overview of the joint financesLink to this section
The condominium association's financial statements serve to transparently present all financial transactions for a year and ensure a fair distribution of costs among the individual owners. At the beginning of each year, a budget is drawn up that serves as a guideline for expected income and expenses. At the end of the fiscal year, the actual condominium association statement is presented, reflecting the actual costs and income.
The purpose of the WEG settlement can be summarized as follows:
Basis for future planning:The condominium association's financial statements form the basis for preparing the following year's budget. By analyzing past expenditures, realistic budget forecasts can be created.Detailed cost overview:The condominium association statement provides a comprehensive overview of all income and expenses. A distinction is made between an overall annual statement, which provides an overview of total costs, and an individual annual statement, which breaks down the individual costs of each owner.Transparency, control and adjustment of maintenance payments:The individual annual statement allows a comparison between the actual costs incurred and the advance payments made (housekeeping fees).Coverage:If the total costs were lower than the advance payments, a decision can be made to adjust the maintenance fee downwards.Undercoverage:If the income is too low, an additional demand will be made to the owners to compensate for the resulting shortfall (Section 28 (2) Sentence 1 Alternative 1 WEG).
In detail: This is included in the WEG statementLink to this section
The condominium association statement shows the income generated through maintenance payments or rental income, as well as the expenses incurred for maintenance, operation, administration, and other items. Each cost item is allocated to the individual condominium owners according to a defined allocation key. For example, the costs for common areas are allocated proportionally according to co-ownership shares, while utility costs such as heating or water are calculated based on individual consumption.
The dual billing structure and the division into overall billing and individual billing promotes understanding and fairness within the community of owners.
The overall billing
The consolidated statement is the main document of the annual statement. It provides a transparent financial overview for all owners and enables a well-founded assessment of the condominium association's financial situation. It details the following information:
The revenue
Records the financial inflows of the owners’ associationIncludes the maintenance fees of each ownerTakes into account income from the rental of common propertyIncludes interest income generated from the maintenance reserve
The expenses
Lists all financial outflows of the homeowners associationIncludes costs for maintenance and necessary repairsBreaks down operating costs for common areas (e.g. lighting, elevator maintenance)Takes into account any administrative costsIncludes insurance premiums for the common property
The development of reserves
Provides information on changes in the maintenance reserveDetails the allocations to the reserveDocuments withdrawals from the reserve for specific purposes
The individual billing
The individual statement for each owner provides a detailed overview of:
Financial Overview
Advance payments made: A detailed list of all maintenance payments made in the past year.Individual cost allocation: Transparent representation of how the actual community costs are distributed among each residential unit.
Financial compensation
Settlement of difference amounts: Determination of possible additional payments or credits by comparing advance payments and actual costs.
Future planning
Adjustment of future payments: Proposal for modifying advance payments for the upcoming accounting year, based on the findings of the current annual accounting.
The scope of the WEG billingLink to this section
The condominium association statement contains not only a breakdown of income and expenses, but also information on the calculation basis, i.e., how the costs are distributed among the individual apartments. Additional documents such as the budget, minutes of owners' meetings, or receipts can be attached.
Many of these documents are now also available online for easy access by owners. The condominium association statement is essential for every owner, as it is required for tax returns, among other things. Certain costs, such as renovations, can be claimed as tax deductions.
Owners pay theHousekeeping billLink to this section
Now you might be wondering who has to pay the costs for the condominium association's statement. The homeowners' association bears the entire cost of the condominium association's statement. The costs for preparing and auditing the condominium association's statement are apportionable as administrative costs according to Section 28, Paragraph 1 of the Condominium Association Act (WEG). They are therefore allocated proportionately to the owners.
These time specifications exist for the preparation of the WEG statementLink to this section
Although there is no legally prescribed deadline for the annual statement, many property management contracts or declarations of division stipulate specific deadlines. In the absence of such provisions, according to the case law of the Federal Court of Justice, a reasonable period of three to six months after the end of the financial year is considered standard. For 2025, this means that your statement should be submitted by June 30, 2026, at the latest.
The person responsible for preparing the WEG annual statement is prescribed by lawLink to this section
By law, the preparation of the annual financial statements for a condominium association is the responsibility of the administrator. They are required to provide a detailed overview of the association's income and expenses.
Further legal requirements regarding the WEG billingLink to this section
The following legal requirements regarding annual obligations, preparation, auditing and additional payments are important for you as a homeowner.
Annual obligation and special cases
The German Condominium Act stipulates that the maintenance fee statement must be prepared annually. This statement should be presented to the owners in a timely manner, along with the invitation to the regular owners' meeting. If extraordinary expenses occur, an additional special statement is required. This statement must be presented to the owners immediately.
Creation
The Condominium Act in brief WEG Act Section 28, Paragraph 2, Sentence 2 stipulates that the administrator of a condominium association is responsible for preparing the accounting. This clear assignment of responsibility makes sense, as the administrator, due to their position within the condominium association, is best placed to prepare accurate and transparent accounting.
Responsibilities include not only the condominium association's accounting, but also the preparation of the financial plan. This provides an overview of the condominium association's planned income and expenditures and thus forms the basis for the subsequent maintenance fee accounting. Furthermore, the administrator is responsible for the condominium association's financial statements (Section 9b, Paragraph 1, Sentence 1 of the Condominium Association Act), which underscores their comprehensive role in the condominium association's financial matters.
Examination and decision-making
Before the owners vote on the condominium association's statement, it must be reviewed by the administrative advisory board, in accordance with Section 29, Paragraph 2, Sentence 2 of the Condominium Association Act (WEG). This review typically includes a review of the receipts to ensure the accuracy of the information in the statement. However, a lack of or inadequate review by the administrative advisory board does not automatically invalidate the resolution on the statement.
The audited statement serves as a basis for the owners' decisions regarding financial adjustments, such as setting new maintenance fees.
Back payments or refunds
The decision regarding additional payments or reimbursements is based on Section 28, Paragraph 2, Sentence 1 of the Condominium Act (WEG). If additional payments are necessary, the condominium association is entitled to them. If too much has been paid, the individual owners can demand repayment (Section 812, Paragraph 1, Sentence 2, Alternative 1 of the German Civil Code).
The condominium association itself does not decide on the condominium accounts, but only reviews them. As already mentioned, the administrator is responsible for preparing them. However, the owners can, of course, use the accounts to check whether the administrator has fulfilled their duties properly.
Control and review of the WEG annual statementLink to this section
The annual maintenance fee statement in a condominium association is primarily reviewed by the administrative advisory boards. They not only check that all figures are correct, but also that the statement has been prepared completely and accurately. It should be noted that:
All important information is included:These include, for example, the total costs, the individual items and the calculation basis.The billing was calculated correctly:The administrative board checks whether the costs have been correctly allocated to the individual apartment owners.The billing applies to your WEG:Of course, there must be no confusion with other properties.
Why is this so important?Through this careful review, you can ensure that all property owners contribute fairly to the costs. Should you nevertheless discover any discrepancies, you can address them at the owners' meeting.
Incorrect annual WEG statement? How to protect yourself
To protect yourself from the consequences of an inaccurate annual statement, you should have your statement thoroughly reviewed by the management board and take a look at it yourself. Even if the management board carries out the main audit, you as the owner have the right to review the statement yourself. This way, you can get your own picture of your costs and ask questions if necessary.
To do this, proceed as follows:
Preparation: Have all documents (current and past invoices, receipts) ready.Checking the documents:Check individual receipts and invoices and check the costs for plausibility.Formal examination:Check the completeness and accuracy of the information, check calculations for accuracy and check the appropriateness of the cost allocation.Income and expenses:Compare planned and actual values, analyze and question deviations.Maintenance reserve:Review additions and withdrawals, assess the adequacy of the reserve.Resolution:Preparation for the owners' meeting and participation in the vote.Troubleshooting:Document and address any errors. Request corrections to the invoice if necessary.Follow-up:Obtain minutes and clarify any open points.
Errors in the WEG statement: consequences and possible actionsLink to this section
What to do if your condominium association's annual statement is incorrect? An incorrect annual statement is a frustrating problem for condominium owners. It can lead to incorrect payments, discrepancies, and, in the worst case, financial losses for the condominium association.
What rights do homeowners have in the event of errors?
By law, every condominium owner is entitled to a correct and complete annual condominium statement. If this statement is incorrect, you as the owner can take various steps:
Extrajudicial request:First, you should notify the condominium association administration in writing of the errors in the billing and request that they correct them. Set a reasonable deadline for this.Involvement of the Administrative Board:Inform the administrative board about the incorrect billing. They can try to persuade the administrator to correct the error.Contact a lawyer:If the property manager doesn't respond to your requests, you can consult a lawyer. They can assist you in enforcing your rights and, if necessary, file a lawsuit against the property manager.Resolution in the owners’ meeting:A resolution can be passed at the owners' meeting that obliges the management to prepare a correct statement.
The house maintenance fee statement is not created at all: This is what you can do
If the annual condominium management fails to prepare the annual statement, you should also take action to protect your rights and avoid financial disadvantages. Here are our tips:
Written request:Set a deadline for the administration to prepare the annual financial statements.Threat of substitute performance:Inform the administration that you will have the annual statement prepared by someone else and that you will bill them for the costs.Documentation:Keep all written requests.
Why is it important to act quickly? A delayed annual statement can result in landlords losing their right to claim back payments from their tenants. If problems persist, please consult a lawyer.
Ralph – your reliable partner for WEG billing
Are you looking for an expert to prepare your condominium (WEG) statement? Ralph is at your side with expertise, transparency, and experience. We guarantee accurate and transparent annual statements so you can focus on what matters most.
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