Service charges: definition & explanation

Whether yield real estate or investment real estate, during the purchase of a house or an apartment there are always ancillary purchase costs. What many underestimate: The ongoing ancillary costs of owning a property. If you buy a rented property or do the initial letting yourself, you can pass on some of these incidental costs to the tenant.

Non-apportionable incidental costs: repair, maintenance & co.

You cannot pass on costs for craftsmen, maintenance and management to the tenant. After all, it is your responsibility as a landlord to ensure that the property meets modern safety standards and is rentable.

As the landlord, you must bear these costs yourself:

• Repair costs
• Maintenance costs
• Administrative expenses
• Bank charges

Apportionable service charges: The tenant pays

The apportionable ancillary costs are those that can be apportioned to the meter by you as the landlord. To avoid misunderstandings here, these should be agreed in the rental contract. This type of incidental costs are also called operating costs. Let’s take a closer look at them.

List of operating costs: (BetrKV) § 2

Operating costs are therefore constant ongoing public charges on the property. These are defined and regulated by law. Thus, any costs for the care and maintenance of the common areas and facilities fall into the category of apportionable service charges. Any costs for street cleaning, garbage disposal and for the chimney sweep are also paid by the tenant.

Here is a brief overview:

1. Water supply
2. Drainage
3. Heating system and fuels
4. Hot water system, supply and equipment
5. Connected heating and hot water supply systems
6. Passenger or freight elevator
7. Street cleaning and garbage disposal
8. Building cleaning and vermin control
9. Garden maintenance
10. Lighting
11. Chimney cleaning
12. Property and liability insurance
13. Janitor
14. Community antenna system
15. Facilities for laundry care
16. Other operating expenses

More about buying real estate: Operating costs

Are you buying a property that is already rented out or are you planning to rent out your newly purchased property? If you’ve never rented out a property before, you should definitely take a closer look at the different ancillary costs. Read even more on the subject here, on my new site for buyers, Immobilien-Erfahrung.de:

• Apportioning operating costs to tenants (external)

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Check apartment and house: Important criteria

During the technical inspection, you personally make an overview of the condition of the property. Important, if you are not able to assess technical systems, take a person with the appropriate know-how with you to the inspection. You should pay attention to this during the technical inspection of the apartment and house:

Windows, exterior walls & co: condition and sealing

Particular attention should be paid to the windows. Depending on the year of manufacture, they may have certain defects. You should pay particular attention to the seal, otherwise moisture can creep in. The same applies to the exterior walls. Our tip: Take a measuring device with you and carry out a moisture measurement.

Here is an overview:

• Windows: condition and seal
• Exterior walls: check moisture
• Fuse box / electrical subdistribution
• Bathroom: condition and furnishings

Bathrooms and sanitary facilities: Moisture Check

In addition to the fuse box, you should also look at the bathroom. Check the toilet, sink, bathtub and shower for proper function. Moisture plays an important role, especially in the tiles and silicone joints. Otherwise, mold can quickly accumulate here.

This is what you should check during the bathroom check:

• Sanitary facilities
• Tiles
• Silicone joints
• Instantaneous water heater
• Water pressure
• Bath ventilation

Checking community property: Important criteria

If you decide to buy a property as part of a WEG (homeowners’ association), you should also look at the common property. Here it is important to note the following:

Facade, roof & basement: condition and moisture

Look at the condition of the facade as well as the roof and the basement. If there are other common areas, you should also look at them. You should pay particular attention to dampness and mold.

Here is an overview:

• Facade
• Roof & attic
• Basement
• Heating system
• Electric meter cabinet

Consultation with residents: defects & modernization measures

Our tip: Talk to the residents of the WEG and let them tell you about problems and defects in the house. Also ask whether and which modernization measures are planned, as you as a resident of a WEG must expect future costs here.

Checklist: Technical check

Here, once again summarized, the – typical – 10 test points in short form:

1. Windows: condition and seal
2. Exterior walls: check moisture
3. Fuse box / electrical subdistribution
4. Bathroom: condition and furnishings
5. Facade
6. Roof & attic
7. Basement
8. Heating system
9. Electric meter cabinet
10. Future modernization and maintenance measures

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Der Beitrag Technical inspection: facade, windows & common property- evaluate house and apartment erschien zuerst auf ℄ Real Estates.