Settled in Germany · Buying a Home
Owning a flat: Hausgeld, the WEG and shared decisions
Buying an apartment means joining a Wohnungseigentümergemeinschaft (WEG) — the owners' association. You pay monthly Hausgeld for building running costs and reserves, and major decisions are taken by majority vote at the Eigentümerversammlung.
When you buy an apartment in Germany, you are not just purchasing your own four walls. You automatically become part of a Wohnungseigentümergemeinschaft (WEG), a community of property owners bound together by law. This means you will pay Hausgeld—a monthly maintenance fee—and participate in collective decisions that shape your building's future. Understanding these obligations and rights from the start is essential to avoid costly surprises and disputes later.
What is Hausgeld and What Does It Cover?
Hausgeld is your monthly share of the building's operating and maintenance costs. It is a mandatory payment that covers shared building expenses, which vary from building to building. In many cases, Hausgeld ranges from approximately €3 to €5 per square meter of your apartment per month, though this figure depends heavily on the building's age, condition, location, and the services provided.
Your Hausgeld typically covers several categories of expenses. First, there are operating costs (Betriebskosten) such as water and heating for common areas, lighting and electricity in hallways and stairwells, garbage collection, and general cleaning and maintenance of shared spaces. Second, the Hausgeld includes building insurance, which protects the structure itself. Third, it covers the cost of the property management company (Hausverwaltung) and administration. Finally, it includes a mandatory contribution to the Instandhaltungsrücklage, or maintenance reserve—a long-term fund for future repairs and renovations of common property.
You pay Hausgeld in advance each month to the property management company. At the end of each year, the WEG produces a statement of account showing whether you have overpaid (and are owed a refund) or underpaid (and owe more). Unlike rent, which benefits a landlord, Hausgeld is collective money used to maintain the building's condition and shared infrastructure. You cannot opt out; it is legally binding once you own a unit in the WEG.
The Instandhaltungsrücklage: Why That Money Matters
A portion of your monthly Hausgeld goes into the Instandhaltungsrücklage (maintenance reserve fund). This is not money for day-to-day repairs or administrative costs—it is reserved strictly for major maintenance, repairs, and renovations of the common property: the roof, façade, heating system, windows in shared stairwells, lift mechanisms, and similar elements that affect the whole building. The reserve protects all owners from being hit with sudden enormous bills when expensive work is needed.
There is no legally fixed amount that a maintenance reserve must hold. Instead, the WEG must maintain an 'appropriate' amount, which is determined by the owners at their annual meeting. In practice, many reserves are built at a rate of approximately 0.50 to 1.50 euros per square meter of living space per month, though this is a guideline rather than a requirement. The reserve's adequacy depends on the building's age and condition: an older building or one with significant repair needs requires a higher reserve.
Before you buy, check the reserve balance carefully in the WEG documents. A low or depleted reserve is a red flag. You may inherit a WEG that is facing major upcoming costs—for instance, a roof replacement or heating system overhaul—and if the reserve is inadequate, you will be hit with a special levy (Sonderumlage) very soon after purchase. This is not uncommon and can amount to several thousand euros.
The Teilungserklärung: Know What Is Yours and What Is Shared
A crucial document you must obtain and study before buying is the Teilungserklärung (deed of subdivision). This is the legal document that defines the boundary between what you own individually (Sondereigentum—your private property) and what belongs to the entire community (Gemeinschaftseigentum—shared property). This division is often a source of confusion and dispute, so reading it carefully is essential.
Your Sondereigentum typically includes your living space and the rooms numbered on the building's subdivision plan—the interior walls, flooring, and installed items that you can renovate without affecting anyone else. However, many owners are surprised to learn what they do not own. Windows and window frames, for example, are usually considered common property (Gemeinschaftseigentum), not your private property. The same applies to pipes and wiring systems in the walls, and to structural elements like the façade, roof, and foundation. Even your apartment door (the exterior entrance door, not interior doors) may be shared property. If your windows need replacement or your pipes need repair, your WEG must approve and pay for the work, not you alone.
The Teilungserklärung also records your Miteigentumsanteil (co-ownership share), typically expressed as a fraction in thousandths. This percentage determines your share of costs for common property and your voting power in the WEG. It is usually based roughly on the size of your apartment, but not always precisely. Larger apartments do not automatically have higher shares if the Teilungserklärung was written differently.
Examining WEG Documents Before You Buy
Most apartment purchases in Germany come with a bundle of WEG documents. Your lawyer or notary should provide these, or ask the seller's agent to supply them. You must review at least three years of WEG meeting minutes (Protokolle der Eigentümerversammlung) before finalizing your purchase. These minutes reveal what decisions have been made, what disputes exist, and what maintenance issues are lurking.
- Look for recurring disputes between owners or between owners and management.
- Search for mentions of upcoming major repairs—roof, heating, windows, façade, or lift replacement.
- Note whether any special levies (Sonderumlagen) have been imposed in the past three years, and for what reason.
- Check the annual accounts (Jahresabrechnung) to see whether the building typically runs at a surplus or deficit.
- Review the current reserve balance and whether it is adequate for the building's age and condition.
- Note whether the building has had rapid turnover of property managers (Hausverwaltungen), which can suggest problems.
If you discover that a roof replacement is planned for next year but the reserve has almost no funds, that is your cue to negotiate a price reduction or to walk away. Similarly, if the WEG is constantly short of money and relies on special levies, your future monthly costs may be much higher than the stated Hausgeld.
The Eigentümerversammlung: Your Voting Power
The Eigentümerversammlung (owners' assembly) is the supreme decision-making body of every WEG. By law, it must convene at least once per year. All apartment owners are invited to attend and vote on matters ranging from approval of the annual budget and Hausgeld increases, to authorization of major repairs and renovations, to election of the management advisory board. Decisions made at the Eigentümerversammlung bind every owner, regardless of whether you attend or vote.
How Voting Works
Unless your building's Teilungserklärung specifies otherwise, voting follows the Kopfprinzip (head principle): each owner gets one vote, regardless of the size of their apartment or their ownership share. This means a person who owns a tiny studio apartment and someone who owns a large penthouse have equal voting power. Some WEGs use alternative voting systems based on ownership percentage (the Wertprinzip or property value principle) or even the Objektprinzip, but these must be explicitly stated in the Teilungserklärung and are less common.
Decisions are usually made by a simple majority vote. However, important decisions—such as changing the voting system itself, authorizing major structural work, or amending the Gemeinschaftsordnung—may require a higher threshold, often a qualified majority (typically two-thirds of voting shares) as defined in the Teilungserklärung. As of December 2020, every Eigentümerversammlung is automatically quorate and able to pass binding resolutions, even if only one owner is present. This reform simplified voting, but it also means that deliberate absence does not protect you from unpopular decisions.
Attending and Voting
You can attend the meeting in person, or you can appoint a proxy (Bevollmächtigter) to vote on your behalf. The proxy can be another owner, a family member, a lawyer, or even a professional adviser. Some WEGs now permit voting by written ballot. However, if you do not attend and do not send a proxy, you forfeit your voting power, and decisions made without you are still binding. Decisions made by the assembly are legally binding even on owners who were absent, did not receive proper notice, or disagree.
Hausgeld Increases and Special Levies
The Hausgeld you pay is not fixed forever. Each year, or whenever building costs rise, the WEG may propose a Hausgeld increase. This requires a vote at the Eigentümerversammlung. The property manager calculates the annual budget and proposes a new Hausgeld amount. If approved, it becomes binding on all owners.
Separate from regular Hausgeld is the Sonderumlage (special levy). This is an additional one-time or occasional payment demanded of all owners to cover extraordinary expenses not covered by the maintenance reserve. Common reasons include unexpected urgent repairs, a major renovation (such as a new heating system or roof) that depletes the reserve, or major purchases for the building. The Sonderumlage is distributed among owners according to their co-ownership shares (Miteigentumsanteile), unless the assembly votes for a different distribution formula.
Special levies are a legal mechanism but can be unpopular and are sometimes challenged in court by owners who claim the expense was unnecessary or improperly allocated. However, courts generally uphold levies that have been properly decided by the assembly. When reviewing a property's history, discovering multiple large special levies in recent years is a warning sign that the building is poorly maintained or that the reserve is dangerously low.
Managing Your WEG Relationships
Being part of a WEG means accepting collective responsibility for the building. You cannot unilaterally decide to avoid Hausgeld payments or ignore community decisions. However, you do have rights. You can inspect the WEG's accounts and meeting minutes. You can demand explanations for special levies. You can vote against unpopular proposals. And if you believe a decision made by the assembly is unlawful—for instance, if a special levy is imposed without proper notice or if voting procedures were violated—you have up to one month from the date of the decision to file a legal challenge.
Most WEG disputes never reach court. Many are resolved through good communication with the property manager and fellow owners. However, larger WEGs (especially those with 10 or more units) often elect a Verwaltungsbeirat (management advisory board) consisting of owner volunteers who work alongside the professional property manager to oversee accounts, approve repairs, and advocate for owners' interests. If your building has one, paying attention to its activities and even volunteering to serve can help you stay informed and have a voice.
Red Flags: What to Avoid
- A maintenance reserve that is nearly empty or non-existent, especially in older buildings.
- Multiple special levies imposed in recent years, suggesting chronic underfunding.
- Lack of recent meeting minutes or a property manager who is slow to provide WEG documents.
- An unusually low Hausgeld compared to similar buildings in your area, which may hide a brewing cost problem.
- Evidence of long-running disputes in meeting minutes, or frequent changes of property management companies.
- A Teilungserklärung with ambiguous definitions of what is private versus common property, or with errors (such as missing rooms).
- Outstanding building defects mentioned in meeting minutes but not yet addressed, especially if the reserve cannot cover them.
Key Takeaways
- Hausgeld is a mandatory monthly payment covering shared building costs, maintenance reserves, insurance, and administration. Budget €3–€5 per square meter per month as a baseline, but always confirm the exact amount for your specific building.
- The Instandhaltungsrücklage (maintenance reserve) is a crucial collective fund. Check its balance before buying—a low reserve signals future special levies.
- Read and understand your Teilungserklärung to know what you own personally versus what the WEG owns. Windows, pipes, and structural elements are often shared property, not yours.
- Review at least three years of WEG meeting minutes and accounts before signing a purchase contract. Look for major repairs on the horizon and patterns of special levies.
- The Eigentümerversammlung is where building decisions are made by majority vote. Attend or send a proxy—decisions made without you are still binding.
- Factor Hausgeld, potential Hausgeld increases, and the risk of Sonderumlagen into your overall budget when buying an apartment.
- Hire a property lawyer to review WEG documents as part of your due diligence. This is one of the most important steps in protecting yourself.
Keep reading — Buying a Home
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The 10–12% on top: purchase taxes and feesBeyond the purchase price, budget roughly 10–12% extra: Grunderwerbsteuer (property transfer tax of 3.5–6.5% depending on Bundesland), Notar and Grundbuch fees, and often an estate agent's commission.
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