House money

Definition of house money – what is it? On the one hand, the house fee includes all operating costs that can later be passed on to the tenant. According to the Operating Costs Ordinance, ongoing operating costs include, among other things, the costs for water, sewage, heating, caretaker or garden maintenance.

What monthly amount should be expected for house payments? The average house fee is 2.50 to 4 euros per square meter per month. For a 50 square meter apartment, this would mean that you as the apartment owner would have to pay around 125 to 200 euros per month.

The house fee is a monthly advance that you as the homeowner have to pay. It serves to cover the running costs of the homeowners' association (WEG). What does house money mean when buying an apartment? This is a type of utility bill for the apartment owner. This serves the management, care and maintenance of the common property. The house money is transferred monthly in advance to the homeowners' association, WEG for short.

The house allowance includes all ongoing additional costs and other planned investments that must be paid in advance by the owner on a monthly basis. The house money must be transferred monthly by the owner to the management of the residential complex.

As the list shows, the electricity and water costs are also included in the house fee. They are also payable. However, one important thing must be taken into account when it comes to electricity: electricity costs for your own apartment are NOT part of the house fee.

The house money is generally tax deductible for owners. The costs are stated as business expenses in the tax return. It is important here to also take the allocated additional costs into account. Depending on its use, various costs of a property can be deducted from taxes.

As the owner, do I also have to pay house fees if the apartment is empty? It doesn't matter to the homeowners' association whether the apartment is empty or rented. Each owner is obliged to pay his share according to the resolution and thus to pay in advance.

The desolate condition of the residential complex can result in high house fees if renovations, conversions or a large addition to the maintenance reserve are required. Other causes could be a legal dispute with the shared apartment or the fact that the property is located on a leasehold property.

For example, the house fee does not include the broadcasting fee and the individual electricity consumption for the apartment as well as the property tax, as these must be paid directly by the owner to the municipality. The owner's personal insurance is neither included in the house fee nor can it be passed on to the tenant. Property tax is not included in the house fee, as the apartment owner has to pay it directly to the municipality. However, if you rent out your condominium, you can pass this cost on to the respective tenant.

The apportionable portion of the house money is individual for each WEG. On average, however, it can be assumed that around 60% of the house money can be passed on to the tenant.

The costs for building insurance are included in the house fees. The building insurance is paid by each owner proportionately depending on their share of ownership. If you rent out your residential unit, you can pass the costs on to the tenant via the utility bill.

Administrators are not allowed to increase house fees on their own. Only the owners can increase the house fees by resolution. With many small optimizations to the existing cost structure, the house fees for all co-owners can possibly be reduced. Service providers sometimes go too far when it comes to the little things and charge excessive costs for them - after all, “only” WEG pays. Any house money that has been paid in excess will be paid back; any shortfalls still have to be paid.

The house money covers all ongoing additional costs as well as planned investments. It is paid monthly in advance and settled with the annual invoice at the end of a financial year. The house fee is comparable to the additional costs that have to be paid in a rented apartment.

If an apartment owner is permanently insolvent or permanently refuses to pay the house fees or special levies, the community can deprive him of ownership of his apartment, Section 18 WEG. This assumes the following: It is a homeowners' association with more than two owners.

If the property costs more than 25 times the annual rent, it is relatively expensive, writes Stiftung Warentest in its magazine “Finanztest” (issue 8/2021). Anyone who pays more than 30 years' rent will have to spend significantly more on housing than tenants for many years.