Tenants pay heating costs, but municipal utilities receive no money: interim solution and penalty order

Tenants pay heating costs, but municipal utilities receive no money: interim solution and penalty order

According to a report by www.augsburger- Allgemeine.de, tenants of a house in Augsburg reliably transferred their heating costs to their landlord, but the landlord apparently did not pass on the money, or at least not completely, to the Augsburg municipal utility, which supplies the residential complex with district heating. The municipal utilities then terminated the district heating contract because there were high outstanding claims and agreements had not been adhered to. The building will now continue to be supplied with district heating via an interim solution. However, the municipal utilities are considering legal action against the company.

This situation creates problems for tenants and utilities. Technically speaking, the municipal utilities deliver the district heating to the entire building and then bill the property management company or the owner for the costs. Since the landlord company apparently does not pass on the costs in full, the municipal utilities cannot bill the heating costs individually to the tenants. Normally, the distribution of heating costs is the responsibility of the property management, who carries out an additional cost statement once a year.

Given this situation, possible impacts on the real estate market and the industry may include:
1. Loss of trust: Tenants could lose trust in their landlords and property managers if they do not forward their payments correctly.
2. Legal consequences: Landlords and rental companies that do not forward their payments regularly or in full may experience legal consequences such as contract terminations and penalties.
3. Burden on utilities: Missing payments and outstanding receivables create financial burdens for utility companies such as municipal utilities, which may have to increase their prices or take measures to compensate for these losses.
4. Need for effective payment management: This situation highlights the need for effective monitoring and management of payments in the real estate industry to avoid such problems and ensure smooth collaboration between landlords, tenants and utilities.

Source: According to a report by www.augsburger- Allgemeine.de