24.03.2022
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In encyclopedia episode 1 of the VON POLL IMMOBILIEN Podcasts, Tim von Campenhausen, Director of Sales and Training at VON POLL IMMOBILIEN, and host Petra Konradi conduct an exciting interview on the major topic Operating Cost Accounting.
What is there to consider? Where do possible sources of error and pitfalls arise? Tim von Campenhausen, clears up over everything worth knowing approximately around the topic operating cost. You can listen to the exciting conversation about these and other topics here now directly or read through as a transcript in 'traditional manner'. We hope you enjoy it!
Podcast episode 'Operating Costs' - complete transcript
Moderator Petra Konradi:
Welcome to the first episode of our podcast.Whether you are a buyer or seller of a property, there are terms that you have all heard before and in most cases know what is behind it. For example, the operating cost settlement, the heritable building right or the easement. With this Podcast we give you auditive encyclopedia to such and other technical terms from the real estate world to the hand.deeply investigated and on the point explained. My name is Petra Konradi. I am the host of the podcast. The topic of this first episode is the utility bill. Our guest, with whom I get to talk about it, is Tim von Campenhausen. He is the director of sales and training at VON POLL IMMOBILIEN. Welcome.
Tim von Campenhausen, Director of Sales and Training VON POLL IMMOBILIEN:
Good afternoon, Ms. Konradi.
Petra Konradi:
The operating costs statement is a fitting example of unintentional errors in form or content. These can happen because the preparation of the statement often involves a lot of effort and can be very complex. So that you as an owner or landlord of a property as far as possible no mistakes happen, here come three important points on which you should pay attention.
Tim von Campenhausen:
There are first of all, on which you have to pay attention, as you already said, formal and substantive errors in the preparation of the operating costs statement. On the second, that a proper operating costs statement must be available to the tenants no later than one year after the end of the accounting period. And of course also quite important to know that a formally incorrect statement is invalid, even if it was submitted on time.
Petra Konradi:
Which ancillary costs can be apportioned to the tenant?
Tim von Campenhausen:
Generally can be and now comes a rather long list: the cost of property tax, water supply, drainage, chimney cleaning, house lighting, cleaning and garden maintenance, street cleaning and garbage disposal, property and liability insurance, antennas and cable television, elevator, machine washing facilities and for the janitor on the tenant apportion.In addition, there is an item for other operating costs that were not included in the other items. And in paragraph two of the operating costs statement all apportionable incidental expenses are listed.
Petra Konradi:
Which incidental expenses can not be apportioned?
Tim von Campenhausen:
Non-apportionable incidental expenses, on the other hand, are repair and maintenance costs, as well as management costs, insurance costs, vacancy costs and other operating costs not listed in detail in the lease.
Petra Konradi:
A very crucial point is the submission deadline, which is probably the most important deadline that landlords must observe. By when must a proper operating costs statement be available?
Tim von Campenhausen:
So the should be, we had also said before, the tenants at the latest one year after the end of the settlement period. The settlement period is specified in writing in the lease agreement and may not exceed the maximum period of twelve months. As a rule, the settlement period conforms to the calendar year, so in the case from January 1 to December 31. Accordingly, the landlord also has until December 31 of the following year to correctly settle the operating costs.
Petra Konradi:
What can happen if this deadline is not met?
Tim von Campenhausen:
Exceeding the deadline means that the tenant no longer has to make any additional payment, as the statement is formally incorrect and therefore invalid. Even if the tenant moves out during the settlement period, the one-year period applies. That is, in this case, the landlord must calculate the months proportionately, in which the tenant still lived in the building.
Petra Konradi:
And there is also a special feature.
Tim von Campenhausen:
Exactly. If the actual apportionable service charges are lower than the advance payment of the tenant, of course, a credit balance arises for the tenant. This must be repaid to the tenant within 30 days, regardless of whether the operating costs statement was delivered on time or not.
If an obligation to pay arises on the part of the tenant in the case of a properly prepared and timely delivered statement of operating costs, this amount must also be balanced within 30 days after receipt of the statement.
Petra Konradi:
Why should formal errors be avoided imperatively?
Tim von Campenhausen:
Quite simply, a formally incorrect statement can lead to the invalidity of this statement, even if it was submitted on time.
Petra Konradi:
And what does a formally correct operating costs statement look like?
Tim von Campenhausen:
This includes first of all the name and address of the landlord and the tenant. If there are several tenants, it is sufficient to address one tenant. The exact designation of the renting thing as well as the account period. And last but not least, in addition, the tenant must be able to trace the costs.
Petra Konradi:
This means?
Tim von Campenhausen:
This means the statement must contain a clear list of the total costs, the allocation key used and information about the advance payments already made by the tenant. This then results in the sum of the additional claim or the credit.
Petra Konradi:
One of the most common errors in the operating cost settlement is an incomplete or delayed settlement, as well as a settlement period that exceeds the specified period of twelve months. Often, service charges that are not apportionable are also settled, or the distribution key does not correspond to the one specified in the lease agreement. In general, landlords should take care to avoid formal and substantive errors to the best of their ability.
Do you have questions about this or other topics? Feel free to contact our experts or find even more info on our website and in the VON POLL IMMOBILIEN app. You can find the links in the show notes of our podcast.
VON POLL IMMOBILIEN - the podcast: You can find us on Spotify, Apple Podcast, Google Podcast or in the VON POLL IMMOBILIEN app and on Amazon Music or via Alexa. Just tell Alexa, play the VON POLL IMMOBILIEN podcast.
