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Who pays the common charges when renting
Who pays the common charges when renting?
When renting out an apartment, confusion often arises regarding the common charges. Must the tenant pay them, or does that remain the responsibility of the owner? The correct answer depends on the type of cost.
Who pays the common charges to the Owners Association?
The owner always remains responsible to the Owners Association. This means:
- The Property Manager's invoices are sent to the owner
- The owner must pay the provisions and settlements
- The Owners Association can only hold the owner liable
The tenant has no direct relationship with the Owners Association.
Can the owner pass on costs to the tenant?
Yes, but only for certain costs. The lease agreement usually determines which common charges are borne by the tenant.
Typically at the expense of the tenant are:
- Electricity for the common areas
- Elevator maintenance
- Cleaning of hallways and stairwells
- Minor repairs
- Maintenance of the garden or common areas
These are service charges related to daily use.
Which costs remain for the owner?
Structural or investment costs always remain at the expense of the owner, such as:
- Contributions to the reserve fund
- Major renovations (roof, facade, elevator replacement)
- Structural repairs
- Repayments of a loan taken by the Owners Association
These costs are linked to the property, not to its use.
How does the settlement work in practice?
Usually, the tenant pays a monthly provision for common charges along with the rent. An annual settlement is then made based on the actual costs.
The owner must be able to demonstrate transparently how the costs were calculated.
What is the conclusion?
When renting, the owner pays the common charges to the Owners Association. Subsequently, they can pass on the service charges to the tenant, provided this is correctly included in the lease agreement. Structural costs and contributions to the reserve fund always remain the responsibility of the owner. A clear breakdown in the lease agreement prevents disputes later on.
The tenant pays for usage. The owner remains responsible for the property.
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