Condominium fee (Hausgeld): Costs, calculation and tips

Condominium fee (Hausgeld): How to understand all costs and calculate them correctly

The condominium fee is a fixed monthly cost factor for every condominium that is often underestimated. As a condo owner, you pay a fixed monthly amount to the property management to cover all common costs of the residential complex. These costs can vary significantly depending on the building, location and amenities, and should be carefully calculated when purchasing a condominium.

What exactly is the condominium fee?

The condominium fee covers all operating costs of a homeowners’ association that must be borne jointly by the owners. It consists of two main components: ongoing operating costs and the reserve for maintenance. The amount is decided annually at the owners’ meeting and allocated to all condo owners according to a defined distribution key.

Which costs are included in the condominium fee?

Ongoing operating costs in the condominium fee

Ongoing operating costs usually make up the largest part of the condominium fee. These include all costs incurred for the proper operation of the residential complex:

Insurance and administration:

• Building insurance for the entire property
• Contents and liability insurance for common areas
• Property management fees (usually 25-35 euros per apartment per month)
• Bookkeeping and annual statement

Maintenance and care:

• Caretaker services and cleaning costs
• Garden maintenance and winter service
• Stairwell cleaning and lighting
• Waste disposal and chimney sweep

Energy and utilities:

• Electricity for common areas
• Heating costs for central systems
• Hot water supply
• Elevator maintenance and electricity costs

Maintenance reserve: your financial buffer

The maintenance reserve is an important component of the condominium fee that is often overlooked. Funds are saved here for larger repairs and modernization. The owners’ association sets up this fund to be prepared for unforeseen expenses.

Typical uses of the maintenance reserve:

• Roof renewal and facade refurbishment
• Renewal of the heating system
• Modernization of elevators
• Refurbishment of basements and stairwells
• Replacement of windows and doors

For older buildings, the maintenance reserve should be around 0.8 to 1.2 euros per square meter per month. For new buildings, 0.5 to 0.8 euros is common.

Calculating the condominium fee per sqm: the most important factors

The condominium fee is usually calculated according to the co-ownership share defined in the declaration of division. This is generally based on living area, but may also take other factors into account.

Factors for calculating the condominium fee:

• Living area of the condominium
• Co-ownership share according to the declaration of division
• Special features (balcony, terrace, cellar)
• Location of the apartment within the building

Example calculation:
For a 70 sqm condominium with an 8.5% co-ownership share and total condominium fees of 3,500 euros per month, you would pay about 297 euros (3,500 euros x 0.085 = 297.50 euros).

This corresponds to a condominium fee of about 4.25 euros per square meter, which is quite realistic for a well-equipped residential complex in Berlin.

Condominium fee vs ancillary costs: the important difference

Many condo owners confuse the condominium fee and ancillary costs, even though there are clear differences:

The condominium fee includes:

• All common costs of the residential complex
• Maintenance reserve for repairs
• Administrative costs
• Insurance for the entire building

Ancillary costs include:

• Individual consumption costs of your apartment
• Heating and hot water (based on consumption)
• Electricity for your own apartment
• Water and wastewater
• Waste charges (insofar as not billed through the condominium fee)

Important difference when renting out:
If you rent out your condominium, you can pass part of the condominium fee on to your tenant as ancillary costs. This includes allocable operating costs such as caretaker services, garden maintenance or stairwell cleaning. However, you as the owner bear the maintenance reserve and administration costs yourself.

Typical condominium fee levels in Berlin

In Berlin, condominium fees vary significantly depending on the district, building age and amenities:

Average condominium fee per sqm:

• Luxury-renovated prewar buildings: 4.50 to 6.50 euros per sqm
• Standard prewar buildings: 3.50 to 5.50 euros per sqm
• New builds with elevator: 4.00 to 6.00 euros per sqm
• Simple postwar buildings: 2.50 to 4.00 euros per sqm

Particularly expensive factors:

• Elevator (additional 0.50-1.00 euros per sqm)
• Concierge service (additional 1.00-2.00 euros per sqm)
• Underground parking (additional 0.30-0.60 euros per sqm)
• Large outdoor areas (additional 0.20-0.50 euros per sqm)

What you should pay attention to when buying

Before you buy a condominium, you should carefully review the condominium fee statements for the last three years:

Checkpoints for the level of the condominium fee:

• Is the maintenance reserve sufficiently funded?
• Are major refurbishments pending?
• How has the condominium fee developed in recent years?
• Are all costs plausible and transparent?

Warning signs when reviewing the condominium fee:

• Very low maintenance reserve (below 500 euros per apartment per year)
• Strongly fluctuating condominium fees without an obvious reason
• High additional payments in previous years
• Planned but not yet approved major repairs

Before you buy a condominium, pay special attention to the maintenance reserve and any planned large measures.

Legal aspects and special assessments

As a condo owner, you are obligated to pay the condominium fee on time. In case of late payment, the property management can send reminders and, in extreme cases, even apply for receivership.

Special assessments in addition to the condominium fee:
If the maintenance reserve is not sufficient, special assessments can be approved. These must be decided by the owners’ association by simple majority and can amount to several thousand euros per apartment.

Typical special assessments:

• Facade refurbishment: 8,000-15,000 euros per apartment
• Roof renewal: 5,000-10,000 euros per apartment
• Heating modernization: 3,000-8,000 euros per apartment
• Balcony renovation: 2,000-5,000 euros per apartment

Tax tips for the condominium fee

For rented condominiums, you can deduct part of the condominium fee for tax purposes:

Deductible components of the condominium fee:

• Administrative costs fully deductible
• Maintenance costs as income-related expenses
• Depreciation (AfA) on modernization components
• Interest on modernization loans

Non-deductible costs:

• Maintenance reserve (only deductible when used)
• Repairs to your own apartment
• Value-enhancing modernizations (only via depreciation)

Optimizing the condominium fee: practical tips

As a condo owner, you can actively help control the level of the condominium fee:

Cost control at the owners’ meeting:

• Obtain different quotes for service providers
• Regularly compare administration costs
• Implement energy efficiency measures
• Question unnecessary services

Long-term cost reduction:

• Modern heating systems save energy
• LED lighting reduces electricity costs
• Professional garden maintenance is often cheaper than doing it yourself
• Regular maintenance prevents expensive repairs

Conclusion: Calculate the condominium fee correctly for a solid investment

The condominium fee is a crucial cost factor when buying a condominium that is often underestimated. At an average of 3.50 to 6.50 euros per square meter per month in Berlin, you should definitely include this item in your financial planning. When buying, pay attention to a solid maintenance reserve and realistic condominium fee levels to avoid unpleasant surprises. For rented apartments, you can pass part of the costs on to your tenant or claim them for tax purposes.

You can get professional advice on buying an apartment in Berlin and on optimal financial planning from E-Homes. Our experts will help you assess all cost factors correctly and find the right condominium.

How much is the condominium fee for a condominium?

The condominium fee varies greatly depending on location, amenities and building age. In Berlin, it typically ranges between 2.50 and 6.50 euros per square meter per month. For a 70 sqm apartment, you would therefore pay between 175 and 455 euros per month for all common costs.

Which costs are included in the condominium fee?

The condominium fee includes all common costs: property management, building insurance, caretaker services, stairwell cleaning, garden maintenance, elevator maintenance and the important maintenance reserve for larger repairs. Your individual consumption costs such as electricity and heating for your own apartment are not included.

Can I pass the condominium fee on to my tenant?

Yes, but only partially. Allocable operating costs such as caretaker services, garden maintenance or waste disposal can be passed on to your tenant as ancillary costs. However, you as the owner bear the maintenance reserve and administration costs yourself.

How is the condominium fee calculated?

The calculation is based on the co-ownership share from the declaration of division, usually based on living area. For a 70 sqm apartment with an 8.5% co-ownership share and total condominium fees of 3,500 euros, you pay about 297 euros per month.

What happens with special assessments in addition to the condominium fee?

If the maintenance reserve is not sufficient for larger repairs, the owners’ association can approve special assessments. For facade refurbishments, these can amount to 8,000-15,000 euros per apartment and are payable in addition to the regular condominium fee.