Everything you need to know about house money: definition, meaning and components

Everything you need to know about house money: definition, meaning and components

Everything you need to know about house money: definition, meaning and components

Introduction

In the German real estate market, homeowners have to pay house fees regularly. Housekeeping is a monthly or quarterly payment made by owners of apartments or houses that are part of a condominium or shared ownership complex. It is important to understand the concept of house money in order to make an informed decision when purchasing or using a property. In this article, we will take a detailed look at the definition, meaning and components of house money.

Definition of house money

The house fee is a financial contribution that is required from the owners of condominiums or shares of property in order to cover the common costs of the residential complex. It is collected by the property management and in most cases used for maintenance, repairs, insurance and administrative tasks of the community facility.

Importance of house money

The house money plays an important role for the owners of condominiums as it helps to finance common costs and tasks. Without regular payment of house payments, it would be difficult to maintain a high quality of life and maintain the property. The house fee ensures that all costs are distributed fairly among the owners and that the community facility is properly managed.

Components of the house money

The house fee is made up of various components that can vary depending on the residential complex and contract. In general, the following cost items are components of the house fee:

1.Repair and maintenance fund: Part of the house money goes into the repair and maintenance fund. This fund is intended to finance future repairs and maintenance of the building and community facilities. The money will be used, for example, to renovate the roof, modernize the elevator or renovate the swimming pool.

2.Operating costs: Operating costs include expenses such as cleaning the stairwell, hallways and outdoor areas, garden maintenance, garbage disposal, cleaning of common facilities, electricity costs for the common property, building cleaning and similar. These costs arise regularly and the house money is used to cover them.

3.Administrative costs: Part of the house money goes towards administration costs. This includes the salaries of the property managers and their employees, office supplies, administrative costs, accounting costs and other administrative tasks.

4.Insurance: The house fee also includes the costs of insurance that insures the building and the communal facilities. This includes building insurance, liability insurance and, in some cases, special insurance for common property.

5.Other costs: Depending on the residential complex, other cost items can also be included in the house fee. These include, for example, costs for security services, maintenance of fire extinguishers, community events or acquisition costs for community facilities such as fitness equipment or playgrounds.

Frequently asked questions about house payments

Question 1: How much is the house fee usually?

The amount of the house fee depends on various factors, such as the size of the apartment, the condition of the building, the communal facilities and the administration costs. On average, house payments are between 150 and 400 euros per month.

Question 2: Who determines the amount of the house fee?

The amount of the house fee is determined by the property management. She creates a cost plan and divides the total costs among the individual owners based on the proportion of co-ownership shares.

Question 3: What happens if an owner doesn't pay the house fees?

If an owner does not pay the house fees, the property management company can take legal action. As a rule, a reminder is issued first. If payment is not made afterwards, the property management can initiate foreclosure.

Question 4: Can the owners influence how the house money is used?

The owners usually have the right to vote on the use of the house money at the owners' meeting. In practice, however, the owners usually agree to the property management company's proposed cost planning.

Question 5: Can the house fee be increased?

Yes, the house fee can be increased if the community facility needs major repairs or maintenance work that goes beyond the existing budget. However, such an increase must be approved by the majority of the owners.

Conclusion

The house allowance is an important financial obligation for owners of condominiums in Germany. It covers the shared costs of repairs, maintenance, insurance and administrative tasks. The house fee ensures that the community facility is properly maintained and managed. By paying house fees regularly, owners help maintain the long-term value of their property.