House money in a WEG: composition, allocation and arrears (2026)

House money is the regular contribution each condominium owner pays to the association. It covers the running costs and feeds the maintenance reserve. This article shows what it is composed of, how it is calculated and what happens in case of arrears.

House money comprises the operating costs of the common property, the administration costs (such as the manager's fee) and the contribution to the maintenance reserve. It is therefore more than just the allocable operating costs.

The basis is the budget plan: from the overall plan, the individual plans are derived via the allocation key — usually the co-ownership shares. This yields each unit's monthly house-money target.

If an owner lets their flat, they may only pass on the operating-cost portion of the house money to the tenant via the service-charge statement. Administration costs and the reserve contribution are borne by the owner.

House-money arrears endanger the association's liquidity. The manager pursues them via dunning up to legal enforcement; outstanding amounts can delay planned maintenance.

Target postings, SEPA direct debit and automatic payment matching reduce arrears and effort. Every payment is assigned to the correct unit and period — transparent for owners and the advisory board.

Is house money the same as service charges? No. House money also includes administration costs and the reserve, which cannot be passed on to tenants.

How is house money allocated? Via the allocation key, usually the co-ownership shares.

What happens with arrears? The manager duns and can enforce outstanding amounts in court.