What Is Hausgeld? – Definition and Legal Basis
When you buy a condominium (Eigentumswohnung) in Germany, you automatically become a member of a homeowners' association (Wohnungseigentümergemeinschaft, or WEG). Along with ownership comes a monthly payment obligation that many buyers underestimate when purchasing property: the Hausgeld.
Hausgeld is the monthly advance payment every apartment owner pays to the HOA to cover the running costs of the communal property. The legal basis is § 16 para. 2 WEG (German Condominium Act): every owner is obligated to bear the costs and expenses of the communal property – including maintenance, repairs, and administration – according to the agreed distribution key.
Important distinction: Hausgeld must not be confused with Wohngeld, which is a government housing benefit for low-income households. Hausgeld is a private-law obligation within the HOA, regardless of your income.
Only the owner pays Hausgeld – never the tenant directly. However, landlords can pass on certain Hausgeld items to tenants through the utility cost statement (Nebenkostenabrechnung). More on that below.
What Does Hausgeld Include? All Cost Items at a Glance
Hausgeld comprises various cost items. The key distinction is between allocable costs (that can be passed on to tenants) and non-allocable costs (borne solely by the owner).
Allocable Costs (Can Be Passed on to Tenants)
These items can be charged to tenants under the German Operating Costs Ordinance (Betriebskostenverordnung / BetrKV):
| Cost Item | Typical Share of Hausgeld | Allocable? |
|---|---|---|
| Heating & hot water | 25–35% | Yes |
| Water & sewage | 8–12% | Yes |
| Building insurance | 5–10% | Yes |
| Waste collection | 5–8% | Yes |
| Cleaning (common areas) | 3–6% | Yes |
| Garden maintenance | 2–4% | Yes |
| Elevator (operation & maintenance) | 3–7% | Yes |
| Communal electricity (lighting) | 1–3% | Yes |
| Chimney sweep | 1–2% | Yes |
| Cable / broadband connection | 1–3% | Yes (TV cost privilege ended 30 June 2024) |
| Caretaker / janitor | 2–5% | Yes |
| Street cleaning & winter service | 1–3% | Yes |
Non-Allocable Costs (Owner Bears Alone)
These items remain with the owner and cannot be passed on to the tenant:
How Is the Hausgeld Amount Calculated?
The Annual Budget Plan (Wirtschaftsplan)
The Hausgeld amount is determined by the Wirtschaftsplan (annual budget plan) of the HOA. The property manager prepares an annual budget listing all projected income and expenses for the community. This plan must be approved by the homeowners' meeting (Eigentümerversammlung) with a simple majority vote.
The budget plan includes:
The Distribution Key (Verteilerschlüssel)
Total costs are divided among individual owners according to a defined distribution key. The most common methods are:
Since the 2020 WEG reform, the homeowners' community can change the distribution key by simple majority vote (§ 16 para. 2 sentence 2 WEG). Previously, unanimity or a formal amendment to the community rules was required.
Worked Example: Typical HOA with 20 Units
Consider a 20-unit HOA in Frankfurt am Main with a total living area of 1,400 m²:
| Cost Item | Annual Total |
|---|---|
| Heating & hot water | €28,000 |
| Water & sewage | €8,400 |
| Insurance | €6,300 |
| Waste collection | €4,200 |
| Cleaning | €5,600 |
| Garden maintenance | €2,800 |
| Elevator | €4,200 |
| Communal electricity | €1,400 |
| Caretaker | €3,500 |
| Other operating costs | €2,100 |
| Maintenance reserve | €16,800 |
| Administration costs | €8,400 |
| Total | €91,700 |
Calculation for a 70 m² apartment:
Average Hausgeld in Germany
The average Hausgeld in Germany is approximately €3.00 to €5.00 per square metre per month. The actual amount depends on many factors:
Hausgeld Too High? What Owners Can Do
If you believe your Hausgeld is above average, take a systematic approach:
1. Review the Budget Plan
Request the current budget plan and the latest annual financial statement from your property management company. Examine every line item:
2. Compare with Regional Averages
Use publicly available operating cost benchmarks (e.g. from the German Tenants' Association / Deutscher Mieterbund) and compare individual items in your Hausgeld with regional averages. Where specific items deviate significantly upwards, there may be room for savings.
3. Change Your Property Management Company
Inefficient or non-transparent management can drive Hausgeld unnecessarily higher. If you are dissatisfied with your current property manager, the homeowners' community can vote to change providers. Our detailed guide walks you through the process step by step: How to change your property management company.
A professional HOA management company secures competitive service contracts, transparent billing, and proactive maintenance planning – which can save costs in the long run.
4. Maintenance Reserve – Too High or Too Low?
The maintenance reserve is a frequent point of contention. A reserve that is too low may keep monthly Hausgeld down, but can lead to special levies (Sonderumlagen) when major repairs arise – one-off payments that often amount to several thousand euros.
The Peters Formula provides a rough guideline:
> Annual reserve = Construction cost × 1.5 / (80 years useful life)
For a building with construction costs of €2,000/m²: 2,000 × 1.5 / 80 = €37.50/m² per year (approx. €3.13/m² per month).
If your reserve is significantly below this, there is an increased risk of special levies. If it is significantly above, it is worth examining whether the amount is truly justified.
Hausgeld and Taxes – What Investor-Owners Can Deduct
For owners who rent out their apartment, the Hausgeld is tax-relevant. However, not the entire Hausgeld is deductible at once:
Allocable Operating Costs
The allocable operating costs (heating, water, insurance, etc.) can be claimed as income-related expenses (Werbungskosten) in the rental income attachment (Anlage V) of the tax return. Since these costs are typically passed on to the tenant, the income and expenses largely offset each other.
Administration Costs
The HOA management fee is fully deductible as an income-related expense – it cannot be passed on to the tenant, thus directly reducing your taxable income.
Maintenance Reserve – Special Rule!
The cash-basis principle of German income tax law stipulates that expenses are only deductible in the year they are actually used. This means: the monthly contribution to the maintenance reserve is not yet deductible. Only when the reserve is used for a specific measure (e.g. roof renovation) can the proportional amount be claimed as a tax deduction.
Practical tip for investor-owners: If you hold your condominium as an investment, discuss the tax optimisation of your Hausgeld with a tax advisor. You can find detailed information on investment property management in our guide: Property management for investors.
Hausgeld vs. Utility Costs (Nebenkosten) – The Important Difference
Hausgeld and Nebenkosten (utility / operating costs) are often confused, but they are fundamentally different:
| Hausgeld | Nebenkosten (Utility Costs) | |
|---|---|---|
| Who pays? | Owner to the HOA | Tenant to the landlord |
| Legal basis | § 16 WEG | § 556 BGB, BetrKV |
| Scope | All costs incl. reserve & admin | Only allocable operating costs |
| Settlement | HOA annual statement | Landlord utility cost statement |
Practical Calculation Example
Suppose your monthly Hausgeld is €380. It consists of:
As a landlord, you can pass on only the €260 in allocable costs through the utility cost statement to your tenant. The remaining €120 (reserve, administration, bank fees) you bear as the owner.
This means: when calculating the return on a condominium investment, you should factor in not only the mortgage payment but also the non-allocable portion of the Hausgeld as an ongoing cost.
Frequently Asked Questions About Hausgeld (FAQ)
Do I have to pay Hausgeld if my apartment is vacant?
Yes. The obligation to pay Hausgeld exists regardless of whether the apartment is occupied, rented out, or vacant. As an owner, you are a member of the HOA and must bear your proportional share of the communal property costs. Vacancy does not affect your payment obligation.
Can the property manager simply increase the Hausgeld?
No. The Hausgeld amount is determined by the budget plan (Wirtschaftsplan), which must be approved by the homeowners' meeting. The property manager prepares the budget, but only the owners can approve it by majority vote. A unilateral increase by the manager is not permitted.
What happens if I do not pay the Hausgeld?
The property management will first send reminders. If payment remains overdue, the HOA can obtain an enforcement order through an expedited procedure (§ 28 para. 3 WEG). Late payment interest and collection costs also accrue. In extreme cases, the HOA can even petition for the forced sale of the apartment (§ 17 WEG).
What is the average Hausgeld in Germany?
The average Hausgeld in Germany is approximately €3 to €5 per square metre per month. In metropolitan areas such as the Rhine-Main region, it can be higher due to increased operating costs and contractor prices. The exact amount depends on the age, condition, and amenities of the building.
Professional HOA Management with Verto
As a digital HOA property management company in the Rhine-Main region, we ensure your Hausgeld is transparent, traceable, and economically sound. Our services include:
Would you like to know if your Hausgeld is reasonable, or are you looking for a new HOA management company? We are happy to advise you – free of charge and without obligation.
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*Last updated: February 2026. This article is for general informational purposes and does not constitute individual legal advice.*
