The essentials at a glance
- The Hausgeld is the monthly advance payment every condominium owner makes to the condominium owners' association (WEG). It is based on the annual budget; the advance payments are approved by the owners' meeting (Section 28 of the German Condominium Act).
- It covers the operating costs of the common property, administrative costs, the contribution to the maintenance reserve and ongoing minor maintenance.
- By default, it is allocated according to co-ownership shares (Section 16(2) WEG); heating and hot water costs are allocated largely by consumption.
- There are no statutory benchmarks for the amount. As a non-binding rule of thumb, roughly 3 to 5 euros per square meter per month is often cited.
- If the unit is rented out, only the recoverable operating costs can be passed on to the tenant; administrative costs and the reserve contribution remain with the owner.
On this page
- What is the Hausgeld?
- Hausgeld or Wohngeld?
- What the Hausgeld includes
- How high is a typical Hausgeld?
- Calculation and allocation with a worked example
- Rented-out units: Hausgeld and tenants
- Hausgeld and taxes
- Payment obligation in disputes
- Hausgeld too high? How to proceed
- Frequently asked questions (FAQ)
What is the Hausgeld? The basics
The Hausgeld is the monthly advance payment every condominium owner makes to their owners' association. It funds the day-to-day operation of the common property: from water and the caretaker to the reserve for future maintenance work. The Hausgeld is not a nuisance, then, but the planned contribution that keeps your building in good shape.
The basis is the annual budget (Wirtschaftsplan), which the property manager draws up for the coming year: a calculation of the expected costs. The advance payments are then approved by the owners' meeting (Section 28 WEG). Your monthly Hausgeld is therefore not something the property management company sets unilaterally, but the result of a resolution in which you participate as an owner.
After the end of the year comes the annual service charge statement (Jahresabrechnung): it compares the actual costs with the advance payments made. What the owners then resolve on is the so-called settlement balance (Abrechnungsspitze), meaning additional payments or the adjustment of the approved advances. This is how the association cleanly reconciles plan and reality year after year.
Hausgeld or Wohngeld? One term, two meanings
In everyday German, the Hausgeld is often called "Wohngeld", and the term persists stubbornly. Officially, however, Wohngeld is something entirely different: a state housing benefit. When it comes to the monthly payment to your owners' association, Hausgeld is the accurate term. This small distinction prevents misunderstandings, for example when dealing with authorities or in contracts.
What the Hausgeld includes
The annual budget bundles all of the association's running expenses. Your Hausgeld is typically made up of four blocks:
- Operating costs of the common property: for example water, heating, electricity for common areas, insurance, caretaker, cleaning, waste collection and the elevator.
- Administrative costs: the property manager's fee and account management. Our guide Costs and fees shows what property management companies typically charge.
- Contribution to the maintenance reserve: the savings component of your Hausgeld. The association uses it to systematically set money aside for future maintenance work.
- Ongoing minor maintenance: smaller repairs that come up during the year and are paid directly from the budget.
How high is a typical Hausgeld?
The honest answer first: there are no statutory benchmarks. As a non-binding rule of thumb, roughly 3 to 5 euros per square meter per month is often cited. This range is explicitly not a standard, but a rough reference point for an initial assessment.
Where a specific property falls within or outside this range depends above all on three factors: the amenities (an elevator or an underground garage generates running costs), the age and condition of the property, and the association's reserve policy.
Good to know
A high Hausgeld is not automatically bad: it can reflect a solid reserve that keeps the property's value stable over the long term. Conversely, a very low Hausgeld is not automatically good: it can point to a maintenance backlog that later leads to special levies. What matters is the composition, not the total alone.
How the Hausgeld is calculated and allocated
The calculation logic is refreshingly clear. It starts with the total of the annual budget, which is allocated among the owners according to an allocation key. The statutory default is allocation by co-ownership shares (Section 16(2) WEG). However, your community rules (Gemeinschaftsordnung) can provide for different keys, for example by floor area or by unit. So it is worth taking a look at them.
An important special rule applies to heating and hot water: under the German Heating Costs Ordinance (Heizkostenverordnung), these costs are allocated largely by consumption, namely 50 to 70 percent of them. Whoever consumes more pays more here, regardless of their co-ownership share.
Worked example: from the annual budget to the monthly Hausgeld
An owners' association approves an annual budget of 48,000 euros in total for the coming year:
- 30,000 euros in operating costs for the common property
- 6,000 euros in administrative costs
- 12,000 euros in contributions to the maintenance reserve
One owner holds 75 of 1,000 co-ownership shares, or 7.5 percent. Her share of the annual budget therefore amounts to 3,600 euros per year (7.5 percent of 48,000 euros). Spread over twelve months, that results in a monthly Hausgeld of 300 euros. With a living area of 75 square meters, this corresponds to 4 euros per square meter per month, a value right in the middle of the reference range mentioned above.
Simplified, fictitious example: all items here are allocated uniformly by co-ownership shares. In practice, heating and hot water costs are billed largely by consumption, and the community rules can provide for different keys. The figures are for illustration only.
Rented-out condominiums: what your tenant covers and what they do not
If you rent out your condominium, the payment logic initially stays the same: you as the owner pay the Hausgeld to the association. You then recover part of it through the tenant's service charge statement, because the recoverable operating costs under the German Operating Costs Ordinance can be passed on to the tenant.
The administrative costs and the contribution to the maintenance reserve, by contrast, cannot be passed on. You bear this difference yourself and are best off factoring it into your calculation from the start. Our guide on tenant service charge statements explains how to bill the recoverable items correctly.
Hausgeld components: what a landlord can pass on to tenants and what not
| Item | In the Hausgeld | Chargeable to tenant |
|---|---|---|
| Water | Yes (operating costs) | Yes |
| Heating and hot water | Yes (operating costs) | Yes, largely by consumption |
| Electricity for common areas | Yes (operating costs) | Yes |
| Insurance | Yes (operating costs) | Yes |
| Caretaker | Yes (operating costs) | Yes |
| Cleaning | Yes (operating costs) | Yes |
| Waste collection | Yes (operating costs) | Yes |
| Elevator | Yes (operating costs) | Yes |
| Property manager's fee | Yes (administrative costs) | No |
| Account management | Yes (administrative costs) | No |
| Contribution to the maintenance reserve | Yes (reserve) | No |
| Ongoing minor maintenance | Yes (maintenance) | No |
Hausgeld and taxes: what you can claim
For a rented-out condominium, Hausgeld components are deductible as income-related expenses. A special rule applies to the maintenance reserve: the contribution only takes effect for tax purposes once the association actually spends the money on maintenance work. The time of your payment and the time of deductibility therefore diverge here.
Owner-occupiers do not come away empty-handed either: they can claim the shares for household-related services and tradesmen's services shown in the annual service charge statement (Section 35a of the German Income Tax Act). So the annual statement is worth a look from a tax perspective too.
Payment obligation: pay first, then clarify
One principle saves a great deal of conflict and cost: the Hausgeld must be paid on time, even if you disagree with individual resolutions or with the statement. If you have objections, you pay first and, if necessary, pursue legal clarification in parallel.
The idea behind this is simple: payment defaults by individual owners hit the entire association. Punctual payments keep the association able to act, and in the end all owners benefit from exactly that, including you.
Hausgeld too high? How to get clarity
If your Hausgeld seems high, a structured look helps more than a gut feeling. Four checkpoints will take you further:
- Read the annual budget: look at the individual items. Where do the large amounts arise, and do they seem plausible for your property?
- Assess the reserve contribution: a large reserve component increases the Hausgeld, but it is money well invested in the property's future.
- Review the schedule of services: what services does the property management company provide for its fee? This shows you what you are paying for.
- Compare quotes: the market shows whether your property manager's price and performance match.
If the comparison shows that other companies offer more service or better terms, switching is less complicated than many people think. Our guide Switching your property management company explains how it works.
Clarity on your property manager's price and performance
If your Hausgeld seems permanently too high or you cannot see the service behind it, a market comparison provides clarity. Describe your property in two minutes and you will receive no-obligation quotes from property management companies in your region. 100% free of charge for owners.
Frequently asked questions about the Hausgeld
What does the Hausgeld include?
Typical components are the operating costs of the common property (for example water, heating, electricity for common areas, insurance, caretaker, cleaning, waste and elevator), the administrative costs (property manager's fee and account management), the contribution to the maintenance reserve, and ongoing minor maintenance.
How high is a typical Hausgeld?
There are no statutory benchmarks. As a non-binding rule of thumb, roughly 3 to 5 euros per square meter per month is often cited. The actual amount depends heavily on the amenities (such as an elevator or underground garage), on the age and condition of the property, and on the association's reserve policy.
How is the Hausgeld allocated among the owners?
The statutory default is allocation by co-ownership shares (Section 16(2) of the German Condominium Act, WEG). The community rules can provide for different keys, for example by floor area or by unit. Under the German Heating Costs Ordinance, heating and hot water costs are allocated largely by consumption, namely 50 to 70 percent of them.
Is Hausgeld the same as Wohngeld?
No. Colloquially, the Hausgeld is often called Wohngeld. Officially, however, Wohngeld is a state housing benefit. The Hausgeld, by contrast, is the monthly advance payment a condominium owner makes to their owners' association.
Can I pass the Hausgeld on to my tenant?
Only in part. The recoverable operating costs under the German Operating Costs Ordinance can be passed on, such as water, heating, caretaker or waste. The administrative costs and the contribution to the maintenance reserve cannot. You bear this difference yourself as the owner.
Is the Hausgeld tax deductible?
For rented-out condominiums, Hausgeld components are deductible as income-related expenses. However, the contribution to the maintenance reserve only takes effect for tax purposes once the association actually spends the money on maintenance work. Owner-occupiers can claim the shares for household-related services and tradesmen's services shown in the annual service charge statement (Section 35a of the German Income Tax Act).
What can I do if the Hausgeld seems too high?
Go through the items of the annual budget one by one, assess the contribution to the reserve and review the property management company's schedule of services. A market comparison then helps: quotes from other property management companies show whether price and performance match.
Do I have to pay if I disagree with the statement?
Yes. The Hausgeld must be paid on time even if you disagree with resolutions or with the statement. The principle is: pay first, then pursue legal clarification in parallel if necessary. Otherwise, payment defaults by individual owners hit the entire association.
Related guides
This guide was prepared with great care (last updated: July 2026) but does not replace legal or tax advice in individual cases. For special situations, such as deviating provisions in your community rules, a law firm specializing in German condominium law or a tax advisor can help.