The monthly Hausgeld – there is no exact English equivalent; "service charge" understates it – is each condo owner's contribution to the community's running costs, and the annual budget (Wirtschaftsplan) is its legal foundation. No approved budget, no payment obligation.
"The apartment owners resolve on the advance payments towards costs and towards the reserves provided for in § 19 (2) no. 4. For this purpose, the manager shall draw up a budget for each calendar year."
— § 28 (1) WEG (German Condominium Act, translated)
What the Hausgeld covers
- Operating costs: water, waste, insurance, caretaker, common electricity – largely recoverable from tenants if the unit is let.
- Administration: manager fees, banking, advisory board expenses – never recoverable.
- Maintenance reserve: the contribution under § 19 (2) no. 4 WEG towards future repairs – also not recoverable.
Allocation key
The default of § 16 (2) WEG is allocation by co-ownership shares (MEA). The community may resolve different keys – consumption for water, per-unit for the elevator – but must apply them consistently.
When the budget falls short
Shortfalls surface as top-up payments through the annual accounts (§ 28 (2) WEG) or as a special levy. A realistically calculated budget with an honest reserve contribution is the best protection – and in eigentumwerk, owners can see their payments and accumulated reserve in the dashboard at any time.