Condominium Fee Statement

The annual maintenance fee statement is the annual financial report prepared by the WEG administrator, which details all income and expenses of the condominium owners’ association (WEG) for the past fiscal year and shows each owner’s individual share. It forms the basis for additional payments or credits owed to individual owners and must be prepared by the manager in accordance with Section 28 of the WEG and submitted to the owners’ meeting for a resolution. A correct maintenance fee statement is essential both for the transparency of the association and for landlords to claim costs for tax purposes.

Structure of the Condominium Fee Statement

The condominium fee statement is typically divided into:

• Overall Statement: An overview of all income (condominium fees, income from reserves, special assessments) and expenses of the association
• Individual statement: Breakdown of costs for each individual owner according to the agreed allocation formula (e.g., co-ownership share, living space, number of occupants for water costs)
• Reserve fund development: Statement of contributions to and withdrawals from the maintenance reserve fund
• Budget for the following year: Advance payments (maintenance fees) for the coming year

In addition to these mandatory components, well-structured statements also include an overview of the reserve fund’s development over several years as well as a list of all outstanding receivables owed to the community. This transparency makes it easier for owners to assess whether the community is in sound financial health and whether the monthly advance maintenance fee payments should be adjusted.

Allocation formula and cost items

Typical cost items in the maintenance fee statement include: management fees, insurance (building, liability, glass), janitorial costs, cleaning, landscaping, heating and hot water, electricity for common areas, and contributions to the reserve fund. The allocation formula is based on the declaration of division; co-ownership shares (MEA) are often used as a benchmark, while actual consumption is used for consumption-based costs such as heating.

Incorrect allocation formulas are one of the most common causes of disputes at owners’ meetings. For example, if heating costs are billed based on MEA rather than consumption, even though heat cost allocators are available, this violates the Heating Cost Ordinance. Owners should therefore not only check the absolute amounts but also understand the logic behind the applied formula.

Challenging and Reviewing the Maintenance Fee Statement

Owners have the right to inspect the supporting documents for the maintenance fee statement with the property manager. Incorrect statements can be challenged by filing a lawsuit to contest the resolution with the competent local court. According to Section 44 of the German Condominium Act (WEG), the deadline for contesting the resolution is one month after the resolution is passed. Factual errors (incorrect amounts, incorrect allocation keys) render the statement vulnerable to challenge; formal errors (missing overall statement) can lead to the invalidation of the approval resolution.

To meet the tight deadline for challenging the resolution, owners should not wait until the meeting to read the statement for the first time. Professional property managers send the documents at least two weeks before the owners’ meeting. Those who carefully review the statement in advance and clarify any open questions in writing with the property manager will be better prepared for the meeting and can vote with greater precision.

Practical Tip for Owners in Nuremberg and Franconia

Condominium owners in Nuremberg WEG complexes should not treat the maintenance fee statement as a mere formality: Check whether the allocation formula corresponds to the declaration of division, whether all receipts are included, and whether the reserve fund is adequately funded. We recommend having the statement reviewed by an expert (lawyer, property managers’ association, or experienced owner representative) before the owners’ meeting. Landlords among the owners can deduct certain items from the maintenance fee statement as business expenses-a clear breakdown is particularly important for this.

In practice, we observe in the Nuremberg metropolitan region that, particularly in smaller condominium associations, reserves are often set too low. A rule of thumb states that at least 1% of the building’s value should be allocated to the maintenance reserve annually. If the reserve consistently falls below this level, significant special assessments may be required for major renovation projects.

Frequently Asked Questions

By when must the property manager submit the maintenance fee statement?

The WEG does not prescribe a strict deadline, but in accordance with market practice and the property management contract, the statement for the previous year should be available no later than six months after the end of the fiscal year (i.e., generally by June 30). Many property management contracts specify this explicitly.

As a landlord, can I deduct the maintenance fees for tax purposes?

Yes, but only certain portions: administrative costs, maintenance costs, insurance, and ongoing operating costs are deductible as business expenses. Contributions to the maintenance reserve are only tax-deductible once the reserve is actually used for maintenance measures.

What is the difference between maintenance fees and housing allowance?

In common parlance, both terms are often used interchangeably; strictly speaking, “condominium fees” refer to the monthly advance payment made by the unit owner to the condominium association (WEG) for operating expenses and reserves. “Housing allowance” refers to government social benefits intended to offset housing costs-a completely different concept.

What happens if an owner fails to pay the condominium fees?

If an owner falls behind on their maintenance fees, the homeowners’ association can have the claim enforced through the local court and, if necessary, have it collected. In extreme cases-such as significant, persistent payment arrears-the condominium may even be subject to foreclosure. It is therefore important for the other owners that the property manager issues reminders for overdue payments early on and takes consistent action.

Maintenance Fee Statement and Tax Certificate

For tenants and landlords, the tax certificate pursuant to Section 35a of the German Income Tax Act (EStG) is an important component of the maintenance fee statement. It details the portion of labor costs attributable to each owner for household-related services (caretaker, cleaning, garden maintenance) and tradespeople’s services. These costs can be deducted directly from income tax-tenants via the utility bill, owners via the maintenance fee statement.

The WEG property manager is obligated to issue such a certificate upon request. We recommend that owners in Nuremberg request this certificate annually and include it in their tax return. Many owners fail to take advantage of this benefit because they are unaware that costs related to common property can also be claimed for tax purposes. A tax advisor or income tax assistance association can help identify the correct items.

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