Knowledge / Owners’ associations
Budget and monthly contribution: how your amount comes about
The budget (Wirtschaftsplan) is the association’s household plan. It determines how much you pay each month (Hausgeld) and what for.
The plan for the coming year
In the budget, the manager compiles the expected income and expenditure for the calendar year (§ 28 (1) WEG). On this basis the association resolves the advance contributions towards costs and reserves, in other words your monthly payment. As with the annual statement, the vote is not on the figures as a whole but only on the amounts that result from them.
What the monthly contribution covers
Your monthly amount feeds several pots:
- operating costs such as water, waste, insurance, cleaning and electricity for common areas
- heating and hot water where supplied centrally
- the management fee and account charges
- ongoing maintenance
- the contribution to the maintenance reserve
Property tax is not part of the monthly contribution. It is assessed separately for each apartment and paid by you directly to the municipality.
Avoiding a gap
A new budget is often not resolved until spring. It therefore makes sense to resolve that the existing contributions continue to apply until new ones are set. That keeps the association solvent.
If the money is not enough for a larger project, the association can resolve a special levy. A well-planned reserve makes that necessary less often.
This article provides general information and does not replace legal advice in an individual case. We are happy to advise you personally on your property.