The owners’ association’s annual statement

What the annual statement is for

After the end of the calendar year, the manager draws up a statement on the budget (§ 28 (2) WEG). It shows what the association actually received and spent in the accounting year and allocates the costs to the individual units.

Since the 2020 WEG reform, the owners no longer vote on the statement as a whole. The resolution only covers the payments that result from it: calling in additional contributions or adjusting the advance contributions that were resolved.

What the statement consists of

The annual statement has two parts that must match each other:

• Overall statement: it shows all income and expenditure of the association in the accounting year.
• Individual statement: your share of each cost type, allocated according to the applicable key. It is set against the advance contributions resolved in the budget. The difference results in an additional contribution or a credit.

The additional contribution is based on the advance contributions that were resolved, not on those actually paid. Unpaid house money (Hausgeld) under the budget remains a separate claim.

Separately from the statement, you receive an annual asset report (§ 28 (4) WEG). It shows the balance of the maintenance reserve and any other reserves, together with a list of the association’s main assets. There is no vote on the asset report.

What to look for when checking

• Do the opening and closing account balances match the income and expenditure booked?
• Do the allocation keys match the declaration of division, agreements and resolutions?
• Do the advance contributions used match the budget that was resolved?

If you can answer yes to these questions, the key points have been checked. You also have the right to inspect the vouchers at the manager’s office (§ 18 (4) WEG).

Household-related services and tradesman services

For owner-occupied apartments, you can claim costs for household-related services and tradesman services for tax purposes (§ 35a EStG). The manager shows the amounts in the statement or in a separate certificate.

If you let your apartment

The individual statement is not the operating cost statement for your tenants. Under residential leases, only costs that are provided for in the Operating Costs Ordinance (Betriebskostenverordnung) and agreed in the lease may be passed on. Management costs, maintenance and repair costs and the contribution to the maintenance reserve in particular cannot be passed on. Ongoing service costs, for example for the lift, can usually be passed on. For the allocation, you can generally use the keys from the association’s statement (§ 556a (3) BGB).

For let apartments, the tax reduction under § 35a EStG does not apply to you as the landlord. For you, the costs are income-related expenses. Your tenants can claim the reduction via the operating cost statement.