Property Maintenance

Property maintenance encompasses all ongoing measures necessary to keep a property in proper, safe, and serviceable condition. It includes maintenance, inspection, repair, and minor upgrades, and is one of the key responsibilities of every property owner. Consistent property maintenance protects the property’s intrinsic value and prevents costly consequential damage resulting from postponed repairs.

Maintenance, Inspection, and Repair

Property maintenance is divided into three main areas:

Maintenance refers to regular, preventive measures that ensure proper operation. Examples: Heating system maintenance (required annually under the GEG), cleaning of gutters and downspouts (every six months), elevator maintenance in accordance with the Industrial Safety Regulation, and testing of smoke detectors.

Inspection refers to the scheduled examination of the condition of a property to identify defects at an early stage. Examples: Roof inspections after storms, inspection of electrical installations in accordance with DGUV V3, inspection of basement waterproofing after heavy rainfall, visual inspection of the facade for cracks or spalling.

Repair involves the rectification of damage or defects that have occurred. Examples: Repair of a leaky roof drainage system, replacement of defective heating pumps, renewal of seals, repair of moisture damage. If repairs are permanently postponed, a maintenance backlog develops, which significantly reduces the property’s value and can trigger costly consequential damage.

Maintenance Costs: Calculation Approaches

Various rules of thumb have been established for calculating property maintenance costs:

• Peters’ Formula: Annual maintenance costs amount to approximately 1.0 to 1.5% of the building’s value. For an apartment building with a value of 400,000 euros, this amounts to 4,000 to 6,000 euros annually.
• Area-based formula: 10 to 15 euros per square meter of living space per year-for 300 m² of living space, that amounts to 3,000 to 4,500 euros annually.
• Age-based formula: For new buildings up to 10 years old: approx. 6 euros/m² annually. For buildings over 30 years old: 15-20 euros/m² annually.

These figures are guidelines-older buildings and properties with technically complex systems (elevator, underground garage, complex heating system) have significantly higher maintenance costs. The actual costs depend on the condition of the building, the quality of previous maintenance, and the scope of the building systems.

Owner’s Obligations and Liability Risks

Owners are legally obligated to ensure public safety (Section 836 of the German Civil Code [BGB]). Anyone who delays repairs to outdoor facilities, staircases, facades, or roofs and thereby causes harm to third parties is personally liable and may also be held liable with their private assets. This applies regardless of whether the property is owner-occupied or rented out.

Legally mandated maintenance obligations:

• Heating systems: Annual maintenance and hydraulic balancing in accordance with GEG
• Elevators: Regular inspections in accordance with the Industrial Safety Regulation by certified inspection agencies (TÜV, DEKRA)
• Fire protection systems: Fire extinguishers in accordance with DIN 14406, smoke detectors in accordance with the Bavarian Building Code
• Chimneys: Regular cleaning by an authorized district chimney sweep
• Electrical installations: Inspection in accordance with DGUV V3 for commercially used buildings

Tax treatment of property maintenance

For rented properties, expenses for property maintenance are generally deductible as income-related expenses against income from renting and leasing. It is important to distinguish between:

• Maintenance expenses (immediately deductible): Measures that restore or maintain the existing condition - e.g., roof renovation, heating system repair, new windows installed as replacements.
• Construction costs (subject to capitalization, deductible only through depreciation): Measures that improve the building beyond its previous condition-e.g., initial installation of a new heating system, conversion of the attic.

A tax advisor can clarify on a case-by-case basis how maintenance measures should be classified for tax purposes.

Practical Tip for Property Owners in Nuremberg and Franconia

Many properties in Nuremberg built between the 1950s and 1970s have a significant backlog of maintenance due to decades of neglect. We recommend that owners do the following before selling: Create a report of defects and necessary measures, and obtain quotes for the most urgent work.

Even if you don’t complete everything before the sale-open communication about the property’s condition builds trust and prevents future liability disputes. An experienced building inspector can help quantify the maintenance backlog and use it as a basis for negotiation regarding the purchase price.

Frequently Asked Questions

What is the difference between maintenance and repair?

Maintenance is the umbrella term for all measures that preserve a property’s intended condition (including upkeep, inspection, and repair). Repair refers to the targeted fixing of damage that has already occurred. For tax purposes, both terms are deductible as business expenses for rental properties, provided there are no acquisition-related production costs under Section 6(1)(1a) of the German Income Tax Act (EStG).

Which maintenance measures must the tenant cover?

Minor repairs (cosmetic repairs, small repairs up to approx. 100-150 euros per repair and up to a total annual amount of approx. 8% of the annual net rent) can be transferred to the tenant via the lease agreement. Major repairs and all structural measures are the landlord’s responsibility-regardless of the lease agreement’s terms.

How can I spot a maintenance backlog when buying a property?

Typical warning signs: an outdated heating system (over 15 years old), an unrepaired roof (torn roofing felt, broken tiles), missing or inadequate thermal insulation, visible moisture damage in the basement or on exterior walls, an outdated electrical panel (fuse box with screw-in fuses instead of circuit breakers), as well as an energy performance certificate rated F, G, or H. If you are interested in purchasing, we always recommend an inspection by a building expert.

As the owner, can I perform maintenance work myself?

Owners can perform minor repairs themselves, provided they have the necessary knowledge. Qualified specialized contractors are required for all work on gas, electrical, and water systems, as well as on safety-critical components (roof, fire protection systems, elevators). For renovations, work performed by the owner can be claimed for tax purposes under Section 35a of the German Income Tax Act (household-related craftsman services) only for the portion of material and labor costs incurred by the specialized contractors, not for the owner’s own labor hours.

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