The Property Management Guide

With Yiannis Tzakris, CEO of Black Label Properties Management

What is the Wohngeld/Hausgeld?

Wohngeld or Hausgeld as we call them in Germany are basically the prorated common charges of a building. They consist of the heating costs, electricity of common areas, garbage disposal, warm water, cleaning of common areas, gardening if there is a garden, doorman if there is one and basically anything that has to do with the common areas of the building. These costs are billed monthly by the landlord as a prepayment and they are established by the annual budgeting in proportion of each owner’s property size.

How can a Property Management Company assist Landlords with their Income Tax?

One of the most important services that we provide to our landlords is the bookkeeping. We usually receive the rent payment from the tenant and pay all the expenses related to the apartment. We then proceed with the bookkeeping of the landlords account and we work closely with the landlord’s tax advisor to provide him with all the necessary information and the reports needed to properly file the landord‘s tax declaration.

What is the Eigentümerversammlung (Annual Owners‘ Assembly)?

The annual owners‘ assembly is a meeting of all owners of a building with the purpose of jointly agreeing on the future of the property and its‘ community. The most common topics in such meetings include budgeting for the next year, settlement of common costs for the last year, potential repairs and liquidity issues. Sometimes there are also problems between the members of the community that need to be solved.

What does a WEG (Wohnungseigentümergemeinschaft) do?

WEG in Germany is the condominium management company, which is taking care of the building and the community of all owners. The main responsibilities are to manage the building, to prevent any damages and to take care of potential repairs. The WEG is also responsible for budgeting common costs, receiving payments from the owners, paying expenses. It makes sure that the building is supplied with water and electricity in the common areas and that garbage is disposed of punctually. Basically, the WEG is responsible for the prosperity of the building and its‘ community.

What does a Property Management Company do?

A property management company takes care of a landlord’s individual property, finding a tenant, signing rental agreements, handing the keys to the tenant and being the representative between landlord, tenant and condominium manager. The company takes care of all bookkeeping and payments related to the apartment as well as managing repairs and renovations. Basically, we represent the landlord in every aspect of his property.
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