As a landlord, which costs may I pass on to the tenant?

We answer these and many other questions in our video blog editions.

Here is the transcript of episode 37 to read:

A professional management takes over the complete work around the property and a professional management also knows what the apportionable service charges are. So the tenant pays for you. And what are the service charges that you have to pay yourself. If we would want to list them, it is simple. The smallest part you can not apportion and you have to pay yourself. These are the management costs themselves, in a good property, maybe 15, 20 € net per month.

Repairs and repair reserves are also not apportionable. All the rest of a property are apportionable incidental costs of the tenant. That is: property tax quarterly, contributions for insurance, garbage collection, stairwell lighting, stairwell cleaning, snow removal in winter for winter service, heating costs and water costs. These are the ancillary costs which the administration apportions to the tenant and which is the share of the warm rent in the case of the tenant. So he pays the cold rent plus the service charges.

And these are apportionable and non-apportionable service charges. And the administration will divide and account for them sensibly for you. The decisive thing is that you have to pay the smallest part of the capital investment property yourself, because a lot, 3/4 of all ancillary costs, are certainly apportionable ancillary costs and therefore the rented property is very attractive.

Keywords:

Property management, apportionable service charges, owner costs, warm rent, investment property, rented property, service charge settlement