Back Housing allowance or operating costs?

Housing allowance and operating costs: the terms are often confused. We bring in some clarity. Good to know for tenants, owners or interested parties who wish to purchase a residential property.

The house money

What is house money?

The monthly advances that all apartment owners have to pay to the WEG manager of the residential complex are referred to as house money. This is a kind of advance payment for additional costs that is settled at the end of the year. If it was set too low, the owner has to pay back at the end of the year. If it has been overestimated, the owners will receive a refund.

Who has to pay it?

The owner of the unit.

What costs are covered by the house allowance?

• all ongoing operating costs such as electricity, gas, water, insurance, etc.
• Rent smoke alarm
• Maintenance costs on the property and building
• Management fee
• Advisory Board Liability Insurance
• material administrative expenses
• Legal advice for community property
• Appraisal costs for the appraisal of the community property
• Allocation to the maintenance reserve
• other costs incurred for the management of the property

The maintenance reserve must always be listed separately and depends on the age and condition of the property. As a rule, landowner liability insurance and property tax are often not included.

Who sets the height?

The administrator draws up an economic plan with the expected income and expenditure for the financial year. The business plan is decided at the annual owners' meeting or continued since it was decided a previous year. The fixed house fee is to be paid by the owner even if his apartment is vacant.

Can the housing allowance be passed on to the tenants?

The house money cannot be passed on directly to the tenants.

If you are considering buying a condominium, you should also consider the amount of the housing allowance and look at the previous economic plans and take a look at the previous minutes of the owners' meetings. Experience has shown that the housing allowance is on average 20 to 30 percent higher than the utility bills to the tenants.

The operating costs

What are operating costs?

Are costs incurred by the owner as a burden on the property and represent a subset of the management costs. The landlord has the right to pass these on to the tenants as operating costs in accordance with the rental agreement.

What costs are included?

All costs according to the Operating Costs Ordinance ( Works KV ) and operating costs that have been agreed in the rental agreement. Administration costs, for example, are not part of the operating costs.

Who has to pay operating costs?

The operating costs are to be paid by the tenant.

In the case of rental, can all operating costs be passed on to the tenants?

Only if this is contractually agreed.

In a nutshell: What is the difference between house money and operating costs?

Housing allowance is to be paid by the owner, operating costs are to be paid by the tenant.