Monthly fees decide when buying a condominium about cash flow, return, and long-term value retention — and are nevertheless regularly underestimated. Anyone who wants to buy their first property or calculates an object as real estate as an investment must necessarily include the monthly fees in the net return calculation. This guide shows what is really included in the monthly fees, which ranges are realistic, what is deductible for tax purposes — and where the typical pitfalls lie, which cost investors thousands of euros per year.
What is the monthly fee — and why is it not a “miscellaneous item”?
The house fee is the monthly contribution that each property owner pays to the homeowners’ association (WEG). It covers all costs related to the common property — everything from the staircase and facade to the elevator. Unlike with a single-family home, the ETW owner does not pay these costs directly to suppliers or tradespeople, but as a monthly prepayment to the WEG management.
House fee as a second payment alongside the bank
Economically, the house fee is a second payment alongside bank financing. Someone planning a €1,500 loan payment will quickly pay an additional €280–360 per month for an 80 m² apartment — and for life, even after the loan is fully repaid.
Mandatory contribution: legally binding according to the economic plan, decided in the owners’ meeting
Prepayment: paid monthly, settled annually (supplement or credit balance)
Cash flow relevant: significantly reduces the net rental yield, often by 0.5–1.2 percentage points
Indicator: too low a maintenance fee is usually a warning sign — no bargain
Legal basis: WEG, WEMoG and economic plan
The amount is not arbitrarily determined, but set by the economic plan according to § 28 WEG and decided upon by majority vote at the owners’ meeting. With the WEG reform (WEMoG), the decision-making authority for structural changes has been simplified — a simple majority is now sufficient, which speeds up renovations, but also increases the risk of special levies. Anyone who refuses to pay risks late fees and, in extreme cases, the revocation of property ownership under § 17 WEG.
What the WEG reform specifically changes for investors
Certified manager: owners are entitled to a certified manager — quality improvement, but also higher management costs
Structural changes: a simple majority suffices (§ 20 WEG) — majority can enforce modernisations, costs are borne by those who benefit
Online meeting: allowed since the reform — easier participation for investors with multiple properties
Right to sue: now with the WEG, not anymore with individual owners — faster processes
What is included in the service charge?
The composition varies depending on the property — crucial factors are year of construction, equipment, and existing communal facilities. A property without an elevator has a completely different cost structure than a new build with underground garage and concierge.
Maintenance, TÜV inspection, emergency call system
5–8 %
What is not included in the housing fee
Misunderstanding: Several costs are not included in the housing fee, but are paid separately — and must be planned for separately in every cash flow calculation.
Own electricity/gas: Direct contract with the energy provider
Internet, phone, TV: except in case of shared cable contract
Repairs in common property: everything within your own walls (flooring, interior doors, sanitary fixtures)
How high is the housing fee? Realistic ranges by property type
The often-cited rule of thumb “2.50–4.00 €/m²” is okay as an average, but too rough for investors. Anyone wanting to calculate realistically must differentiate by property type — luxury properties can cost twice as much.
Ranges by property type
Object type
Service charge per m²/month
Example 80 m²
Drivers
Existing buildings before 1990, without elevator
2.00–3.00 €
160–240 €
basic furnishings, possible high renovation backlog
In luxury properties, the service charge regularly eats up 1–1.5 percentage points of gross yield. Those who calculate with standard values systematically beautify the investment calculation.
Location effect: A-city vs. medium-sized city in direct comparison
Location also significantly drives the service charge. In A-cities, management and caretaker costs regularly exceed those in medium-sized cities by 20–35% — even with identical property quality.
Location
Management €/unit/month
Caretaker €/m²/year
Total Service Charge for 80 m²
Munich / Frankfurt / Hamburg
28–35 €
4.80–6.50 €
290–360 €
Berlin / Düsseldorf / Stuttgart
24–30 €
4.00–5.50 €
260–320 €
B-cities (Leipzig, Hannover, Bremen)
20–26 €
3.20–4.50 €
220–280 €
Medium-sized city / District town
16–22 €
2.50–3.80 €
180–240 €
Service Charge Increase Over Time
What many investors overlook: service charges continuously increase — typically 2–4% per year, even up to 5–8% during periods of high inflation. Drivers include especially energy, building insurance, and management fees. For a serious 10-year cash flow plan, this increase must be modeled in.
Insurance: +5–10 % p. a. (natural disasters, higher reconstruction costs)
Energy (general electricity, heating): highly variable, significantly increasing in the long term
Property management fee: +3–5 % p. a. common since the WEG reform
Building manager/cleaning: +3–4 % p. a. (wage development)
Monthly charges and return: The cash flow effect
For investors, the monthly charges are not an abstract item, but a direct return killer — as long as they are not transferable to the tenants. The truth: Approximately 30–40 % of the monthly charges remain with the owner, the rest can be passed on to the tenant. Anyone who wants to calculate the purchase price factor and seriously input it into the cash flow calculator must necessarily factor in this owner’s share.
Example calculation: 80-m² apartment as an investment
The following overview shows three typical scenarios — from the renovated existing property to the luxury property — and makes the return loss due to the non-transferable monthly charges visible.
Item
Renovated stock
New build
Luxury
Purchase price
320.000 €
520.000 €
950.000 €
Rent (€/m²)
12 €
16 €
28 €
Annual rent
11.520 €
15.360 €
26.880 €
Gross return
3,60 %
2,95 %
2,83 %
Total maintenance fee/year
3.360 €
3.840 €
6.720 €
of which not chargeable (~35 %)
1.176 €
1.344 €
2.352 €
Return loss due to maintenance fee
−0,37 %p
−0,26 %p
−0,25 %p
Special charge killer: Return killer special charge – Stress scenario
What the standard calculation does not show: every 7–10 years, a special charge threatens in every WEG. Whoever has not planned for roof renovation, facade or new heating system loses an additional half return point in reality. The stress scenario for the renovated stock:
Special charge for roof renovation: 12.000 € one-time after 8 years
Converted to remaining term: corresponds to additional 1,500 €/year of equity commitment
Effective return reduction: further −0.47 %p on the net return
Consequence: from 3.60 % gross, realistically often 2.2–2.5 % net after tax
What the gross return hides
As described in the guide on calculating gross return, the gross return is only the starting point — only after deducting the non-recoverable portion of the service charge, the ongoing maintenance reserve, and financing costs does it become clear what really remains.
Maintenance reserve — the most sensitive part of the service charge
The reserve is legally required (§ 19 Abs. 2 No. 4 WEG) and is saved on a separate WEG account. The key point: it belongs to the WEG, not to the individual owner. When selling, you receive nothing in return — the buyer takes over proportionally.
https://lukinski.com/wp-content/uploads/2024/02/villa-kaufen-verkaufen-landhaus-munchen-grunwald-3-etagen-hoch-einfahrt.jpg8001200https://lukinski.com/wp-content/uploads/2024/04/lukinski-logo-real-estate-investment-germany-house-villa-off-market.svg2026-04-09 00:00:002026-08-02 13:03:02Hausgeld: What is it, how much is it & what is included?
