Running Cost Settlement – Properly Allocating Costs
The running cost settlement is compiled once a year by the lessor for the lessee. It covers the overhead of running costs that accrue as a result of a building's use. Important to note for condominium owners: This settlement represents the recoverable cost components in your HOA fee settlement. Exactly which costs qualify and which do not is governed by the German Operating Costs Ordinance (BKVO). Recoverable items include utility costs for water, heating, waste disposal, and groundskeeping, among other things.
Non-recoverable costs, by contrasts, include the maintenance reserve and the administration charge, which thus cannot be transferred 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.”
We hope you enjoy our encyclopaedia!