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Real Estate Glossary
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Allocation of operating costs

If a condominium is rented, the operation cost can be partially passed on to the tenant. The criteria for redistribution as the apartment size or the consumption for example water or heating oil determine the amount of costs for each tenant. The landlord of the apartment is responsible to send the tenant the operational cost account to a maximum of twelve month after the end of the accounting period.

The operating costs ordinance regulates which cost positions are allocable costs. The following costs are allocable:

  • Current taxes, that are incurred for the property, such as land
  • Fees for water
  • Fees for drainage
  • Heating costs
  • Fees for hot water supply
  • Costs related to heating and hot water supply
  • Operating costs for elevator
  • Fees for waste disposal and street
  • Charges for residential building cleaning
  • Charges for garden care
  • Fees for the lightings of rooms, which are used by all, and also for outdoor lighting
  • Fees for the chimney
  • Premiums for property and liability insurance
  • Fees for the janitor
  • Costs for the media supply, for example to operate a community antenna system
  • Costs for the operation of washing machines and dryers
  • Other operating costs such as a sauna and a swimming pool

 

The following costs are not allocable:

  • Capital cost effect
  • Fees for the administrative authority
  • Cost of maintenance and repair

Whether Prior to an Acquisition...

Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.

... or after – Our Real Estate Encyclopaedia Provides the Answers You Need

Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”

We hope you enjoy our encyclopaedia!