Four bodies of rules apply to German property owners: the Condominium Act (WEG) for the owners association (§ 1, § 9a), the tenancy law of the Civil Code (BGB) towards tenants (§ 535), the Operating Costs Ordinance for allocable costs (§ 1, § 2 BetrKV) and the Heating Costs Ordinance for heating costs (§ 7 HeizkostenV). Which ones apply depends on your role; letting owners are usually affected by all four.
The four central bodies of rules at a glance
Which law applies depends on your role: an owner in an association, a landlord, or both. The table below places the rules in context.
| Body of rules | What it governs | Core section |
|---|---|---|
| WEG | The relationship among condominium owners, management, resolutions | § 1, § 9a WEG |
| BGB tenancy law | The landlord-tenant relationship, main duties, operating costs | § 535, §§ 556 ff. BGB |
| BetrKV | Which recurring costs are allocable | § 1, § 2 BetrKV |
| HeizkostenV | Allocation of heating and hot water costs | § 7 HeizkostenV |
Condominium Act (WEG)
The WEG is the foundational law of every owners association. § 1 WEG defines the terms: condominium ownership (Wohnungseigentum) is the individual ownership of a flat combined with the co-ownership share of the common property. Common property is the land and the building, in so far as they are not individual property. This distinction is decisive in practice and is explored in the guide individual property and common property.
The most important recent change is the Condominium Modernisation Act (WEMoG), which entered into force on 1 December 2020. Since then the owners association (Gemeinschaft der Wohnungseigentümer, GdWE) is expressly a legal entity: under § 9a WEG it can acquire rights, incur liabilities and sue and be sued in court. It comes into being when the condominium land registers are opened. The management of the common property thus rests with the association as a body, no longer with the owners as fractional co-owners.
The WEG sets out the central processes of the association. These include the tasks of property management, the owners meeting as the decision-making body and the passing of resolutions through which the association acts. Further practically relevant topics are the advisory board as a supervisory body, the house rules for daily life and the particularities of multi-building complexes and sub-associations.
BGB tenancy law
As soon as you let your condominium, the tenancy law of the Civil Code (BGB) comes into play. § 535 BGB governs the main duties: the landlord must grant the tenant the use of the rented property during the tenancy and keep it in a condition fit for the contractual use; the landlord also bears the charges on the property. The tenant is obliged to pay the agreed rent.
Particularly relevant for owners are the operating cost rules of §§ 556 ff. BGB. They establish that operating costs may be passed on to the tenant and set the deadlines for the statement. How the tenancy-law statement interacts with the WEG annual statement, and which allocation key applies, is explained in detail in the guide service charges and cost allocation.
Operating Costs Ordinance (BetrKV)
The Operating Costs Ordinance specifies which costs are allocable at all. Under § 1 BetrKV, operating costs are those that the owner incurs on an ongoing basis through ownership of the land or the intended use of the building. Expressly excluded are management costs as well as maintenance and repair - that is, repairs.
The exhaustive catalogue of § 2 BetrKV lists 17 items, from property tax through water, heating and the lift to insurance and the caretaker. Only what appears in this catalogue, and recurs, may be passed on in a tenancy. Which items these are in detail and where the most common errors lie is again shown by the service charges guide.
Heating Costs Ordinance (HeizkostenV)
Heating and hot water costs follow a special rule. Under § 7 HeizkostenV, at least 50 and at most 70 percent of the costs of operating the central heating system must be allocated by the measured heat consumption of the users; the remaining costs are allocated by living or usable area. Consumption-based billing is therefore mandatory and not optional. A breach can trigger rights of reduction. The details and the consequences for the statement are dealt with in the service charges guide.
The recurring advances that pre-finance heating and operating costs within the association derive from the Hausgeld and the budget.
Gebäudemodernisierungsgesetz (GModG): briefly mentioned
Beyond the rules above, the Gebäudemodernisierungsgesetz (GModG, called the Gebäudeenergiegesetz or GEG until July 2026), Germany’s law on energy saving and the modernisation of heat supply in buildings, is gaining importance. It bundles the requirements for the energy quality of buildings and heating systems and requires an energy certificate (Energieausweis) on sale and re-letting. Anyone selling or newly letting a property will find the practical steps in the checklist for selling and letting.
These laws in Frankfurt and the Rhine-Main region
The laws above apply nationwide, yet their application has local aspects. Property tax as an operating cost item under § 2 No. 1 BetrKV depends on the municipal assessment rate and differs in Frankfurt from Offenbach, Bad Homburg or Eschborn. A locally experienced property manager knows these differences and ensures that the WEG, the BGB and the ordinances work together with legal certainty.
Sources
Editorial responsibility: digo.immo Verwaltung & Invest - certified residential property manager under § 26a WEG (IHK Frankfurt), licence under § 34c GewO. About the certification
This article provides general information only and does not replace individual legal advice. It was created with AI assistance; the legal statements have been checked against the official texts of the law. Legal status: 28/08/2026; laws and case law may change. No warranty is given as to completeness, accuracy or timeliness. When in doubt, please seek qualified advice.