Hausgeld (condominium fee) – what is included, what is recoverable, and what is tax-deductible?

What is Hausgeld? Definition and Significance

For the apartment owner, the Hausgeld is what the advance payment for service charges (Nebenkosten) is for the tenant – only more extensive, because it also contains items that a landlord is not allowed to pass on to tenants.

The legal basis is found in the German Condominium Act (WEG – Wohnungseigentumsgesetz). According to § 16 Para. 2 WEG, every apartment owner must bear the costs of the community in proportion to their co-ownership share, unless the community has decided on a different distribution. Incidentally, the term “Hausgeld” does not appear in the law itself – it refers to “costs” and “advances”. In colloquial terms, besides Hausgeld, the terms “Wohngeld” (not to be confused with the state housing allowance as a social benefit) and “Wohnkostenvorschuss” (housing cost advance) have also become established.

“The apartment owners must bear the costs of the association of apartment owners, in particular of administration and of the joint use of the common property, in proportion to their shares (paragraph 1 sentence 2).”

— § 16 Para. 2 Sentence 1 Condominium Act (WEG)

Briefly summarized – what exactly is Hausgeld?

• Who pays: exclusively the apartment owner, never the tenant directly.
• To whom: to the homeowners’ association, in practice to the bank account of the property management.
• For what: operating costs, administration, maintenance, and allocation to the maintenance reserve for the common property.
• How often: usually monthly as an advance payment, with an annual settlement.
• Basis: the annual budget (Wirtschaftsplan) approved by the owners’ association.

What is Included in the Hausgeld?

The composition of the Hausgeld is derived from the annual budget, which the property management prepares annually and the owners’ association approves. Even though every residential complex calculates differently, certain cost categories appear practically everywhere.

Operating Costs of the Common Property

The largest block consists of the running operating costs, as listed in the Operating Costs Ordinance (BetrKV):

• Water and wastewater (cold and hot water, rainwater)
• Heating costs for the central heating system including maintenance and consumption measurement
• Common electricity for the staircase, basement, outdoor lighting, and elevator
• Waste disposal and street cleaning
• Building cleaning and garden maintenance
• Elevator (electricity, maintenance, emergency call system, TÜV inspection)
• Building insurance and property liability insurance
• Janitor or janitorial services
• Cable connection or community antenna (if still existing)
• Chimney sweep, pest control, winter service

Whether heating costs are included in the Hausgeld depends on the type of heating: With a central heating system of the WEG, the heating costs run through the Hausgeld and are billed predominantly based on consumption according to the Heating Costs Ordinance. If each apartment has its own gas boiler or floor heating, the owner or tenant concludes their own utility contract – in which case heating is not included in the Hausgeld. The same almost always applies to apartment electricity: everyone pays for the electricity for their own apartment directly to their provider, only the common electricity is included in the Hausgeld.

Administration Costs

The WEG property management receives a fee, typically around 20 to 40 euros per unit per month – depending on the region, size of the complex, and scope of services. In addition, there are bank account management fees, costs for owners’ meetings, and, if applicable, fees for the advisory board.

Maintenance Reserve (Erhaltungsrücklage)

An essential component of the Hausgeld is the allocation to the maintenance reserve, formerly called “Instandhaltungsrücklage”. This is how the community saves for larger measures on the common property: roof renovation, facade painting, heating system replacement, elevator modernization. The owners’ association determines the amount of the reserve. A frequent orientation is the calculation ordinance for publicly subsidized housing (§ 28 II. BV), which estimates maintenance costs between approximately 7 and 11.50 euros per square meter of living space per year, depending on the age of the building.

Maintenance and Ongoing Repairs

In addition to the reserve, the budget usually includes an item for minor ongoing repairs to the common property – such as a defective front door locking system, a leaking riser pipe, or defects in the common property that need to be fixed in the short term.

Hausgeld Table: Typical Composition

The following Hausgeld table shows an example of how the monthly Hausgeld for a 75 m² condominium can be composed. The values are guide values and vary considerably depending on the property:

If you want to know what is included in the Hausgeld, you should not rely on average values, but rather read the specific annual budget and the latest annual statements of your own WEG – every item is broken down there.

How Much Hausgeld is Normal? Amount and Average

The most common question from prospective buyers is: How high is the Hausgeld for condominiums usually? There is no flat-rate answer, as the amount depends on the equipment, age and condition of the building, the region, and the decisions of the homeowners’ association. As a rough rule of thumb: the monthly Hausgeld is usually between 2.50 and 5 euros per square meter of living space – on average often around 3 to 4.50 euros per square meter.

Hausgeld per sqm: Guide Values by Building Type

A Hausgeld of 500 euros per month is conspicuously high for an average 70 m² apartment (around 7 €/m²) – for a 120 m² apartment in a well-maintained complex with an elevator and high reserve allocation, however, the same amount can be completely normal. The decisive factor is always the square meter value and the question of how much of it flows into the reserve.

Beware of Unusually Low Hausgeld

A very low Hausgeld is not a quality feature when buying an apartment, but often a warning sign: the community may be saving too little for maintenance. This threatens special assessments (Sonderumlagen) later on when the roof, facade, or heating system needs to be renovated. Conversely, a high Hausgeld does not automatically mean high “lost” costs – a large reserve share ultimately increases the value and substance of the property.

Calculating Hausgeld: Formula and Example Calculation

How is Hausgeld calculated? The basis is the annual budget (Wirtschaftsplan): The management estimates the total costs of the complex for the coming year and distributes them according to the applicable allocation key – usually according to co-ownership shares (MEA – Miteigentumsanteile), and for individual items like heating costs according to consumption. Simplified formula for the individual owner:

1. Determine the total annual costs of the WEG according to the budget (including reserve allocation).
2. Calculate your own share according to the allocation key (e.g., co-ownership shares according to the declaration of division).
3. Divide the result by 12 = monthly Hausgeld advance.

Example calculation: A WEG with 20 apartments calculates total annual costs of €72,000 (including a €12,000 reserve allocation). Your apartment holds 60/1,000 co-ownership shares. Your annual share: €72,000 × 60/1,000 = €4,320. Monthly Hausgeld: €4,320 ÷ 12 = 360 €. A more precise “Hausgeld calculator” is not needed for this – the annual budget and declaration of division provide all the necessary numbers.

Hausgeld Monthly or Annually? Payment Method, Budget, and Billing

Is Hausgeld paid monthly or annually? In almost all homeowners’ associations, the Hausgeld is paid monthly as an advance, usually by standing order or direct debit at the beginning of the month. Legally, the association decides on the advances based on the annual budget (§ 28 Para. 1 WEG); a different payment method – such as quarterly – would be possible, but is uncommon. So, if you ask whether you have to pay Hausgeld monthly: Yes, in practice, monthly advance payment is the standard.

Annual Settlement and Settlement Margin (Abrechnungsspitze)

After the end of the calendar year, the management prepares the annual settlement with all actual income and expenses. The owners’ association then decides on the so-called settlement margin (Abrechnungsspitze) – i.e., the difference between the advance payments made and the actual costs:

• Additional payment: If the actual costs were higher than the advances, you must pay the difference.
• Credit: If the costs were lower, you will receive a credit back or it will be offset.

Example of settlement margin: You have paid 12 × €300 = €3,600 in Hausgeld advances. The annual settlement shows actual costs of €3,780 for your unit. The settlement margin is €180 – you pay this amount after the resolution on the settlement. Important since the WEG reform of 2020: The resolution is only passed on the settlement margin, not on the entire settlement as a set of figures.

Is Hausgeld Passable? Passing Hausgeld on to Tenants

For capital investors, this is the central question: Can Hausgeld be passed on to the tenant? The answer: partially. Who pays the Hausgeld – tenant or landlord? Towards the WEG, the owner always pays the full Hausgeld. As a landlord, however, you may pass the recoverable components on to the tenant via the utility bill – provided the lease contract contains a corresponding agreement according to § 556 BGB.

Only the operating costs within the meaning of the Operating Costs Ordinance can be passed on. Administration costs, maintenance costs, and the allocation to the maintenance reserve (§ 1 Para. 2 BetrKV) cannot be passed on – these items are borne by the landlord alone.

Table: Recoverable and Non-Recoverable Costs in the Hausgeld

Passing Hausgeld on to Tenants: Example

How much of the Hausgeld can be passed on? In practice, the recoverable share is often around 60 to 80 percent. A calculation example based on the Hausgeld table above (€300 monthly):

In this example, the landlord can therefore pass €215 on to the tenant via the advance payment for service charges; €85 monthly (non-recoverable Hausgeld) remains with the landlord. Important: The landlord may not simply hand over the WEG’s Hausgeld statement to the tenant, but must prepare their own operating cost statement according to tenancy law rules – within twelve months after the end of the billing period (§ 556 Para. 3 BGB) and according to the allocation key agreed in the tenancy agreement, in case of doubt based on living space.

Hausgeld and Utility Costs: What is the Difference?

Hausgeld and utility costs (Nebenkosten) are often mixed up in everyday life, but they mean different things. Are utility costs included in the Hausgeld? Yes – the operating costs of the common property are part of the Hausgeld. However, the Hausgeld is more comprehensive because it also includes administration, maintenance, and reserves.

Therefore, the Hausgeld of a condominium is almost always higher than the utility costs that a tenant pays for a comparable apartment. For owner-occupiers, this means: even without rent, noticeable housing costs arise month after month – this should be included in the financing planning of an apartment purchase right from the start.

Is Hausgeld Tax Deductible?

Whether and how you can deduct Hausgeld from taxes depends on whether you rent out the condominium or occupy it yourself.

Landlord: Hausgeld as Income-Related Expenses in Annex V

For landlords, the Hausgeld is largely tax-deductible as income-related expenses (Werbungskosten) under income from renting and leasing. In the tax return, you enter the items in Annex V (Anlage V). The following applies:

• Recoverable operating costs: deductible as income-related expenses; the utility costs reimbursed by the tenant must be set as income in return.
• Non-recoverable costs (administration, maintenance): fully deductible as income-related expenses – they directly reduce the taxable result.
• Allocation to the maintenance reserve: according to current case law of the Federal Fiscal Court (BFH), only deductible once the community actually spends the money on maintenance measures – not already at the time of payment (BFH, judgment of January 14, 2025, IX R 19/24; information at bundesfinanzhof.de).

Where to enter it in the tax return? The non-recoverable Hausgeld shares and the spent maintenance costs belong in Annex V under income-related expenses; the annual settlement of the management serves as proof. Many managements now list the tax-relevant shares separately.

Owner-Occupier: Household-Related Services and Craftsman Services

Anyone who occupies the condominium themselves cannot claim the Hausgeld as income-related expenses. However, the wage components included in the Hausgeld for household-related services and handyman services are deductible according to § 35a EStG – for example, for house cleaning, garden maintenance, janitor, winter service, or maintenance work:

• 20 % of labor costs for household-related services, maximum €4,000 tax reduction per year,
• 20 % of labor costs for handyman services, maximum €1,200 per year.

Prerequisite is a certificate from the property management showing the favored wage shares from the annual statement. Ask for it – the creation is standard for most managements.

Hausgeld in Case of Ownership Change: When Does the New Owner Start Paying?

When selling a condominium, the question regularly arises as to when the new owner has to pay the Hausgeld. The decisive factor is not the notarized purchase contract and also not the handover of the keys, but in principle the entry in the land register (Grundbuch): only with the registration of transfer does the buyer become a member of the homeowners’ association and thus liable for payment towards the WEG.

In practice, the parties usually agree on an economic transition to a fixed key date in the purchase contract (often the purchase price payment or transfer of possession). From this date on, the buyer bears the Hausgeld internally, even if the land register entry is still pending – in this case, they reimburse the seller for the advances paid in the meantime.

Additional Payment and Refund in Case of Ownership Change

• Additional payment from the annual settlement: The settlement margin (Abrechnungsspitze) is owed by whoever is the registered owner in the land register at the time the resolution on the settlement is passed – this can also be the buyer for periods in which the seller still held the apartment. A different distribution should be regulated in the purchase contract.
• Refund of the reserve upon sale: The paid maintenance reserve remains the asset of the community. There is no refund of Hausgeld or reserve upon sale; however, the seller can economically price the reserve share into the purchase price.
• Hausgeld arrears of the seller: Old debts do not automatically transfer to the buyer. Nevertheless, before buying, have the management confirm that there are no arrears – otherwise, disputes over outstanding amounts will strain the relationship with the community.

Owner Does Not Pay Hausgeld: Arrears and Consequences

If an owner does not pay the Hausgeld, the community lacks liquidity for running bills – the other owners must de facto carry the gap. The WEG can and should act consistently in case of Hausgeld default:

1. Reminder by the management, if necessary with default interest and reminder fees.
2. Judicial dunning procedure or action for payment by the community against the defaulting owner.
3. Foreclosure from the title, if necessary up to the compulsory auction of the apartment. Claims for Hausgeld of the community are even privileged in the compulsory auction (priority class 2, § 10 Para. 1 No. 2 ZVG).
4. Deprivation of apartment ownership as a last resort in case of serious breaches of duty (§ 17 WEG), for example, in case of Hausgeld arrears of more than three percent of the unit value over more than three months.

For owners in financial difficulties: seek dialogue with the management early on. Installment payments are often negotiable, whereas a titled procedure is expensive.

Checking Hausgeld When Buying an Apartment: Checklist

What does the Hausgeld mean specifically for your decision when buying an apartment? It is a permanent monthly cost block next to the financing rate – and at the same time an indicator of the condition of the community. Before buying a condominium, check:

• Annual budget and the last two to three annual settlements: How is the Hausgeld composed? Are there noticeable cost increases?
• Amount of the maintenance reserve: Does the accumulated amount match the age and condition of the building? A thin reserve with a substance in need of renovation means future special assessments.
• Minutes of the owners’ meetings: Have major measures been decided or are they foreseeable (roof, facade, heating system replacement)?
• Hausgeld arrears in the community: Many defaulting owners are a risk factor for everyone.
• Recoverable share (for capital investors): How much of the Hausgeld can be passed on to the tenant, how high is the actual net burden?

Rule of thumb for calculation: when buying a condominium, calculate with a monthly Hausgeld of roughly €3 to €4.50 per square meter and then check the real numbers of the specific WEG.

Special Cases: Single-Family House, Citizen’s Benefit, and Basic Income Support

Is There Hausgeld for a Single-Family House?

No – Hausgeld in the legal sense only exists in homeowners’ associations. In a detached single-family house, you bear all operating and maintenance costs directly yourself; a joint administration does not apply. An exception are terraced or semi-detached house complexes that are legally organized as a WEG: there, a (usually low) Hausgeld can also apply to a “house”, for example, for shared paths, insurance, or an underground garage. Economically, however, it is also sensible for every house owner to save up a private maintenance reserve in a similar order of magnitude.

Hausgeld for Citizen’s Benefit (Bürgergeld) and Basic Income Support

If owners of an owner-occupied, appropriate condominium receive Citizen’s Benefit (Bürgergeld) or basic income support, the provider covers the accommodation costs (§ 22 SGB II). These include the operating cost shares of the Hausgeld and heating costs in a reasonable amount. The allocation to the maintenance reserve, on the other hand, is generally not covered, as it serves to accumulate assets; in the case of administration costs, the providers decide differently. The local guidelines are authoritative – information is provided by the job center or social welfare office of your municipality.

Frequently Asked Questions about Hausgeld (FAQ)

What is meant by Hausgeld – short definition?

Hausgeld is the monthly advance payment of the apartment owner to the homeowners’ association to cover the operating, administrative, and maintenance costs of the common property, including the maintenance reserve. The basis is § 16 and § 28 WEG as well as the approved annual budget. (In Germany, “Hausgeld” is usually translated as “condominium fee” or “homeowners’ association fee”.)

Who pays the Hausgeld – tenant or landlord?

Towards the WEG, always the owner. The landlord can then pass the recoverable operating costs on to the tenant via the utility bill; administration, maintenance, and the reserve remain with the landlord.

Do you pay Hausgeld monthly or annually?

The usual method is monthly payment as an advance; after the end of the year, the annual settlement follows with an additional payment or credit (settlement margin).

How much Hausgeld is normal?

The average is around €3 to €4.50 per square meter and month, depending on equipment between about €2 and over €5.50. For a 75 m² condominium, €225 to €340 monthly is a typical range.

Are heating costs and utility costs included in the Hausgeld?

Yes with a central heating system – heating and hot water then run through the Hausgeld and are billed based on consumption. The other operating costs of the common property (water, wastewater, waste, insurance, etc.) are also included. Not included are apartment electricity, individual telecommunication contracts, property tax, and costs on the private property (Sondereigentum).

Is Hausgeld tax deductible?

Landlords deduct the Hausgeld largely as income-related expenses in Annex V (reserve only upon actual use). Owner-occupiers can claim the wage shares of household-related services and handyman services according to § 35a EStG.

When does the new owner have to start paying Hausgeld?

Towards the WEG from land register entry; in the relationship between buyer and seller mostly from the transition date agreed in the purchase contract.

What happens if an owner does not pay the Hausgeld?

The community can issue reminders, sue, and execute – up to compulsory auction, in which Hausgeld claims are served with priority. In extreme cases, deprivation of apartment ownership according to § 17 WEG is threatened.