Hausgeld in Germany: monthly fees for condo owners explained

Around 300 euros a month for an 85-square-metre flat, on top of the mortgage payment, year after year, with nothing coming back at resale. First-time buyers of a condominium in Germany almost always underestimate the Hausgeld, the monthly fee every owner pays to the owners' association; in many a financing spreadsheet it never appears at all. As a rule of thumb, expect 3 to 4.50 euros per square metre per month, depending on the building's age, amenities and region. And if you rent the flat out, there is a second half to the story: one slice of the Hausgeld (management and the reserve fund) can never be passed on to your tenant and stays with you for good.

What is included in the Hausgeld?

The Hausgeld is each owner's monthly advance payment to the community of owners (WEG, the German condominium association). It funds everything the common property costs, from the stairwell lighting to the savings cushion for the next roof. Three blocks add up:

• Recoverable operating costs: water and sewage, waste collection, communal electricity, lift, building insurance, caretaker, garden and stairwell cleaning
• Non-recoverable costs: the manager's fee, bank charges, ongoing maintenance and repairs
• The contribution to the maintenance reserve (Erhaltungsrücklage), from which the community pays for major refurbishments

Until Germany's condominium law reform, the reserve was called Instandhaltungsrücklage, and many statements and listings still use the old name. It means the same thing: money the community sets aside today so that the roof renovation in ten years does not trigger a special levy.

How much Hausgeld is normal?

The range of 3 to 4.50 euros per square metre per month is an average, not a law of nature. A well-kept new build with a lift, underground parking and caretaker service can sit at 5 to 6 euros; a simple older building without a lift often manages on 2.50 to 3 euros. Region plays a part too, mainly through the wages of caretakers, cleaners and tradespeople.

When buying, take a second look: a conspicuously low Hausgeld is not a mark of quality but often a warning sign. It frequently hides an underfunded reserve, and the bill arrives later as a special levy when the roof or the heating gives out. Before signing, ask for the community's asset report and the last statements; the state of the reserve says more about the building than any brochure.

How is the Hausgeld set, and when does it change?

The amount does not fall from the sky; it follows the business plan.

Under § 28 WEG, the manager draws up a plan of expected income and expenses for each calendar year, and on that basis the owners resolve the monthly advances: the Hausgeld.

After the year ends comes the reckoning: the annual statement (Jahresabrechnung) sets the actual figures against the planned ones. If the community spent more than budgeted, the owners resolve top-up payments; if it came in cheaper, the advances are adjusted or credits offset. The Hausgeld is therefore always a payment on account: the final number only appears in the statement.

Legal note: resolved advances are binding. An owner who considers the business plan excessive must challenge the resolution in court, but still has to pay the resolved amounts in the meantime, or risk collection proceedings brought by the community.

Which part can be charged to a tenant?

If you let the flat, you may only pass on the operating costs listed in the 17 categories of the German operating costs ordinance (Betriebskostenverordnung), water, waste, lift, insurance, caretaker and similar running items. The legal basis is § 556 of the Civil Code, and the tenancy agreement must provide for it.

Never recoverable are the manager's fee, bank charges, maintenance and repairs, and the contribution to the reserve. That gap (easily a noticeable share of the Hausgeld, depending on the building) stays with the owner permanently and belongs in every yield calculation from day one.

A mistake seen constantly in practice: forwarding the manager's Hausgeld statement to the tenant as if it were the service charge bill. That routinely goes wrong, because the WEG allocates by co-ownership shares while tenancy law usually requires floor area as the key, and because the non-recoverable items have to be stripped out cleanly.

How do you check your Hausgeld statement?

You do not have to take the statement on faith. Every owner can demand access to the administration records (§ 18(4) WEG): the invoices, contracts and bank statements behind the numbers. Reputable managers offer inspection appointments or provide the receipts digitally.

Four points where statements most often go wrong, in practice:

• A wrong allocation key, for instance co-ownership shares although the community resolved a different key
• Expenses that should be paid from the reserve appearing again among the running costs
• Items concerning individual owners' separate property spread across everyone
• Large deviations from the business plan left unexplained

If the numbers do not add up, talk to the advisory board and the manager first, many errors are clerical and get corrected. If the statement stays wrong, the clock is ticking: the resolution on the top-up payments can only be challenged in court within one month.

The Hausgeld is not an annoying side item; it is your building's operating budget in monthly instalments. Knowing what is inside lets you budget a purchase realistically, read a suspiciously low figure for what it is, and go through the annual statement with a sharp eye. And if you are a landlord, you price in the share that always stays with the owner, instead of rediscovering it year after year.

Updated July 2026. This article applies to condominium ownership (WEG) in Germany, is for general information only and does not constitute legal or tax advice.