Hausgeld is the monthly advance that every condominium owner pays to the owners association so that the running costs of the common property and the maintenance reserve are funded. How high this advance is follows from the annual budget, which the manager prepares and on whose advances the owners then resolve (§ 28 (1) WEG). Hausgeld is therefore fundamentally different from rent and is not identical to the allocable operating costs (Betriebskosten) either. This guide explains what the Hausgeld is made up of, how it is allocated, what happens after the year and where owners should look closely. It is written to make German condominium law accessible to international owners.
What is Hausgeld?
Hausgeld is not a fee for a service but an advance towards the community’s costs. The owners association (the legally capable community of condominium owners) must constantly meet expenses: insurance, electricity for common areas, servicing, the caretaker, the manager’s fee and much more. So that this money is available, each owner pays their share in advance, usually monthly.
The direction matters: Hausgeld flows from the owners to the community, not to a landlord. It concerns only the common property (Gemeinschaftseigentum), that is everything owned jointly (roof, facade, stairwell, heating system, outdoor areas). Whatever happens inside the individual unit (Sondereigentum), such as a repair in one’s own kitchen, is paid by that owner personally and not out of the Hausgeld.
The budget: the basis for the advances
The annual budget (Wirtschaftsplan) is the calculation for the coming financial year. In it the manager sets the expected income against the expected expenditure and determines the advance each owner needs to pay to cover the planned requirement.
Under § 28 (1) WEG the owners resolve on the advances towards the costs and the reserves. The wording of the statute since the WEG reform (WEMoG, in force since 1 December 2020) is notable: the subject of the resolution is no longer the budget as a document but the advances derived from it, that is the actual Hausgeld. The manager prepares the plan; the owners give it binding force by resolving on the payments. The resolution is normally passed at the owners meeting.
Until a new budget is resolved, the most recently resolved advances continue to apply. This keeps the community solvent even if a meeting is delayed.
What is the Hausgeld made up of?
The Hausgeld essentially has two components:
| Component | Content | Examples |
|---|---|---|
| Running management costs | recurring operating costs | insurance, communal electricity, water, refuse, servicing, caretaker, manager’s fee |
| Contribution to the maintenance reserve | saving for future upkeep | the share that is not spent but set aside |
The first block covers the running operation of the building. The second block is a saving component: part of the Hausgeld is not consumed immediately but added to the maintenance reserve, so that larger measures such as a new heating system or a roof renovation do not later have to be financed through a sudden special levy.
Example: In the budget a community calculates annual management costs of 60,000 euros and a contribution to the maintenance reserve of 20,000 euros, 80,000 euros in total. An owner with a co-ownership share of 100/1000 bears 8,000 euros of this per year, that is around 667 euros of Hausgeld per month.
The adequate maintenance reserve
The maintenance reserve (Erhaltungsrücklage, formerly Instandhaltungsrücklage) is enshrined in law. Under § 19 (2) no. 4 WEG, proper administration includes the accumulation of an adequate maintenance reserve. The statutory wording says no more than that: it names no fixed amount, no calculation formula and no fixed percentage.
The benchmark is adequacy. A reserve is adequate if it can fund foreseeable upkeep of the common property without overburdening the owners. What matters:
- the age and condition of the building
- expected larger measures (roof, facade, heating, lift, pipework)
- the reserve already accumulated
A reserve set too low takes its revenge later through special levies; a very high reserve ties up capital unnecessarily. The right level is therefore a commercial judgement that the manager prepares and the owners resolve.
Allocation by co-ownership shares
How the total Hausgeld is divided among the individual owners is governed by § 16 (2) WEG. The principle: each owner bears the costs in proportion to their co-ownership share (Miteigentumsanteil, MEA) as registered in the land register. An owner with a larger share pays proportionally more.
Since the WEG reform owners may resolve a deviating allocation for individual costs or certain types of cost (§ 16 (2) sentence 2 WEG). It can thus be agreed to allocate certain costs by living space, by unit or by measured consumption where this better reflects actual use. A majority resolution at the owners meeting is sufficient for this.
Hausgeld, rent and operating costs: the important distinction
Anyone who lets a condominium deals with two different cash flows that must not be confused.
Hausgeld is paid by the owner as a member of the community. Rent is paid by the tenant to the landlord. Operating costs (Betriebskosten), in turn, are the part of the running costs that the landlord may pass on to the tenant, provided the lease allows it.
Crucially, not all of the Hausgeld is allocable to the tenant. From the Hausgeld, the following in particular are not allocable:
- the manager’s fee
- the contribution to the maintenance reserve
- maintenance and repair costs
Only the running operating costs within the meaning of the Operating Costs Ordinance may be passed on to the tenant. This is exactly where the most common errors occur, when the non-allocable part of the Hausgeld is carried over into the service charge statement unchecked. See the guide on the service charge statement for more.
After the year: annual statement and balancing amount
After the end of the financial year the manager submits the annual statement (Jahresabrechnung). It sets the actual income and expenditure against the planned figures. From this each owner can see whether their advances were sufficient or not.
Since the WEMoG, owners do not vote on the entire statement but only on the so-called balancing amount (Abrechnungsspitze): under § 28 (2) WEG owners resolve on the collection of additional contributions or the adjustment of the resolved advances. The balancing amount is thus the difference between the Hausgeld that was paid and what actually arose.
Example: An owner paid 8,000 euros of Hausgeld during the year. The annual statement shows actual costs of 8,600 euros for the unit. The balancing amount is 600 euros, which the owner must pay as an additional contribution once the owners have resolved this.
The asset report
In addition to the annual statement, the manager prepares an asset report (Vermögensbericht) under § 28 (4) WEG. It reports on the level of the maintenance reserve and presents the material community assets. The asset report must be available to all owners and creates transparency about whether the community is financially sound. For buyers of a condominium it is a key source of information.
Consequences of Hausgeld arrears
The resolved Hausgeld is an enforceable claim of the community. If an owner does not pay, consequences follow:
- Default and interest: the community can charge default interest
- Court enforcement: arrears are sued for and enforced
- Removal of condominium ownership: in serious, repeated cases removal is possible as a last resort
Economically the other owners initially bear the shortfall, because the running invoices must still be paid. Consistent receivables management is therefore among the core tasks of professional condominium management.
Hausgeld in Frankfurt and the surrounding area
In the tight market around Frankfurt, a high renovation backlog in the older building stock meets rising construction and trade costs. A realistically calculated maintenance reserve is not a luxury here but the precondition for upcoming work on the roof, facade or heating not leading to five-figure special levies. Energy-efficiency requirements also increase the upkeep needs of many buildings. Owners should therefore treat the budget, the level of the reserve and the asset report not as a formality but as a management tool. A certified property management prepares these figures so that the owners meeting can decide on a sound basis.
Hausgeld and the budget are thus far more than a monthly debit: they are the financial foundation on which the value retention of the entire property rests.
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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. Legal status: 29/06/2026; laws and case law may change. No warranty is given as to completeness, accuracy or timeliness. When in doubt, please seek qualified advice.