Operating costs include all those current costs that arise from property ownership and the way you use your property. They do not, however, include one-off cost items. Accordingly, expenditures for water supply and grey water disposal, heating, street cleaning, facility cleaning, garbage collection, lighting, required insurance policies, and other service charges qualify as operating costs. Among other eligible cost items are, for instance, the property tax, as well as the cleaning and maintenance of heating and hot water supply installations.
If you let your condominium, the lease contract will normally allocate the operating costs to the tenant. In this case, you need to compile a running cost settlement for the tenant each year. If, by contrast, you owner-occupy your condo, you pay for the overhead out of your own pocket.
Non-recoverable operating costs include, inter alia, management costs arising from the management of your residential property portfolio, as well as maintenance and reinstatement costs. This sort of cost item cannot be allocated to the tenant.
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.”
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