They are due monthly and now often make up a large chunk – we are talking about operating costs. These are regularly recurring costs that are incurred for the entire building. Once a year, the utility bill flutters into the house. This is the latest time to take a closer look at the issue of operating costs. Lawyer Valentina Philadelphy-Steiner reveals what tenants and owners need to know about operating costs.
What all falls under operating costs?
If the apartment is within the full scope of application of the Tenancy Act (MRG or mrg), the answer is relatively simple: Paragraphs 21 to 24 of the MRG list exactly what is considered operating costs in old buildings or subsidized new builds: These include charges for water and waste water, the costs of sewer clearance, garbage, clearing out abandoned property, pest control and electricity for lighting the stairwell and communal areas.
The ongoing regular expenses for communal facilities such as the elevator, playground, swimming pool, sauna, laundry room and green areas are also included, as are sweeping fees, cleaning costs, property tax and the manager’s fee. Insurance premiums for fire, liability and water damage are also included.
Repair costs or contributions to the repair reserve, on the other hand, are not operating costs and therefore only have to be paid by condominium owners. If more than half of the tenants have agreed to this, the premiums for glass breakage and storm damage insurance are also included.
“The costs for repairs and maintenance work as well as contributions to the repair reserve, on the other hand, are not operating costs,” says Philadelphy-Steiner. These are therefore only to be paid for by apartment owners. In the partial area of application of the MRG (e.g. privately financed new build) or where the MRG does not apply, however, operating costs are a matter for agreement. In this context, the lawyer advises not to use the word operating costs across the board in the contracts for reasons of transparency, but to list the respective items specifically.
Operating costs in property
If there are several owners, the operating costs are also contractually agreed – in the condominium agreement.
The operating cost key – who has to pay how much?
The operating costs are divided according to the usable area of the apartment. In rare cases – provided a corresponding measuring device is available – consumption-based items are calculated according to actual consumption. Incidentally, the flat rates may be increased by a maximum of ten percent each year in January.
Operating cost statement: deadline in June
The MRG stipulates that the statement of operating costs must be submitted or clearly displayed in the building by June 30 of the following year at the latest. It must also be clear and include income and expenses. In all other cases, the contractual agreement is decisive for the submission.
If no statement of operating costs is submitted, tenants can apply to the arbitration board or the competent district court to have one submitted.
Then you can do the math.
High operating costs, unclear positions
If there is a suspicion that the bill contains incorrect items, tenants can check it. “The miscellaneous item often includes postage or interest charges that do not count as operating costs,” says Philadelphy-Steiner. The amount of the items can also be questioned: One guide is the tenants’ association’s operating costs table, which is based on average values. Managers or owners are obliged to grant tenants access to the receipts.
What about an objection to the operating costs?
If questions remain unanswered despite the inspection of the receipts, the content of the annual statement can also be reviewed by the arbitration board or the respective district court by means of an application. But beware: While this is possible retroactively for up to three years under the MRG, tenants of a cooperative apartment only have six months to do so.
Back payment or credit for operating costs: Who pays, who gets it?
If an additional payment is due, which is always due on the next but one interest payment date, the tenant who is the main tenant at the time the payment is due must pay. On the other hand, he also receives any credit balance.
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