Arriving in Germany, settling down, and finding a home is an exciting step. However, amidst the joy of signing a rental contract, a term often arises that can cause confusion: additional costs. These common expenses, while unavoidable, can become the 'hidden costs' that throw your budget off balance if you don't understand them well. Don't worry! Here we explain everything you need to know to manage them like an expert.
What are Additional Costs? (Common Rental Expenses)
In the context of renting in Germany, additional costs (also known as operating costs) are the extra expenses that are added to your base rent (the cold rent). Together, the cold rent and the additional costs form the warm rent, which is the total rent you pay each month. These expenses cover the maintenance and general operation of the building and its services and are not included in the net rent price.
From Berlin to Munich, through Frankfurt or Cologne, additional costs represent a significant part of the cost of living in Germany. On average, these expenses can amount to between €2.50 and €3.50 per square meter per month, although they vary greatly depending on the city, type of building, and included services. It is crucial to understand them to avoid surprises at the end of the year!
Key Components of Your Additional Costs (And What They Should NOT Include)
The additional costs are broken down into various categories. Some are fixed, while others depend on your consumption. It is essential to review your rental contract to know exactly which expenses are charged to you.
Expenses You Will ALWAYS See in Your Additional Costs
Heating (Heating Costs): This is usually the largest expense. It is calculated based on individual consumption and a proportional share of your living space.
Water (Water Costs): Includes the supply of cold and hot water, as well as sewage. It is also measured by consumption and prorated.
Garbage Collection (Garbage Collection): Costs for waste disposal.
Cleaning of Buildings or Common Areas (Building Cleaning): If there is cleaning staff for staircases, hallways, etc.
Property Tax (Property Tax): The annual tax that the owner pays to the municipality and can be passed on.
Building Insurance (Building Insurance): Includes fire insurance, water damage insurance, storm insurance, etc., and the owner's liability insurance (liability insurance) for damages to third parties in common areas.
Lighting: Electricity for common areas (stairs, basement, etc.).
Community Antenna/Cable (Cable Connection): If the building has a centralized system.
Attention! Expenses That Should NOT Be in Your Additional Costs
It is important to know that not all expenses that an owner has with the property can be passed on to tenants. By law, additional costs can only include operating expenses. Be careful with:
Major Repairs and Maintenance (Maintenance and Repair): The cost of replacing a boiler, repairing the roof or facade, or renewing windows cannot be an additional cost. This is the owner's responsibility.
Administrative Costs (Administrative Costs): Although the owner incurs expenses for managing the property, in general, they cannot pass these on to the tenant, except for very specific exceptions in social housing.
Appliance Maintenance: If the owner provides you with appliances, their maintenance or repair is not an additional cost.
The Additional Cost Statement: Your Annual Settlement
Each year, your owner or the building management will send you a statement of additional costs, the additional cost statement. This document compares the monthly advances (prepayments) you have paid with the actual expenses incurred during the settlement period. The owner has a period of 12 months from the end of the settlement period to send it to you. For example, if the period is from January 1 to December 31, 2023, the additional cost statement for 2023 must reach you before December 31, 2024.
How to Review and, if Necessary, Contest It?
Receiving an additional cost statement with an additional payment can be frustrating, especially in cities like Düsseldorf or Stuttgart, where costs can be high. Here’s how to review it:
Check the Basic Data: Ensure that your name, address, and the settlement period are correct.
Understand the Distribution: The expenses are distributed in different ways (per person, per square meter, per unit of consumption). Verify that the calculation basis is correct according to your contract.
Request Inspection of Receipts (Receipt Inspection): You have the right to request the original invoices and receipts from the owner that justify each expense. This is crucial if you suspect any irregularities. You can do this at the owner's or management's office, and if you live far away (for example, in Leipzig and your owner is in another city), you can request copies at your expense.
Look for Common Errors: Unallowable expenses (such as administrative or major repair costs), calculation errors, or incorrect cost distribution.
Deadline for Contesting: Once you receive the additional cost statement, you have 12 months to submit a written objection if you find errors. If you do not do this within this period, the settlement is considered accepted.
Tips for Hispanics in Germany
Living in Germany, whether in a rental apartment in Hamburg or buying a house in Munich, involves understanding a different system. Regarding additional costs:
Keep Your Receipts: Keep all additional cost statements and the payments you make.
Read Your Rental Contract (Mietvertrag) Carefully: Before signing, make sure you understand which additional costs are included and how they are calculated. If you have doubts, ask.
Consider Liability Insurance (Liability Insurance): Although it is not an additional cost, this insurance is essential for any tenant in Germany. It protects you from accidental damages you may cause to the rented property or to third parties. It is a minimal investment that can save you a lot of headaches!
Understanding additional costs is key to a peaceful life in your German home, whether you are renting, buying, or already an owner. Financial planning and proper protection are your best allies.
If you have questions about how to protect your home or finances in Germany, feel free to contact us. As your advisor from BarmeniaGothaer, I am here to guide you and offer you the right insurance solutions for your situation, whether you are a tenant or an owner.
Elvis Campuzano
Head of a Service Center at BarmeniaGothaer
Finanzen Campuzano by BarmeniaGothaer
Phone: 0172 2638910
Web: finanzencampuzano.de