Annuity means the sum of the annual repayment of a loan, which consists of the interest rate and the amortization.
The acquisition costs include all costs that occur when buying an apartment. This includes the purchasing price, purchase tax, notary costs etc. The value percentage of the standard land value is not considered.
Apartment is a term deriving from French and means small flat. It can be described as a modern small apartment. Often they have fully equipped sanitary areas.
Asset is an English term. It means economic goods or items of property.
An asset manager is the property manager for one or more investors. His or her responsibility is to operate the building and taking care of its proper maintenance within the requirements of the law.
Architectural monuments are buildings, or parts thereof, whose preservation and use are in the public interest due to their historical, urbanistic, artistic, scientific or popular significance and are therefore subject to special protection against structural alteration.
Accounting of operating costs
Landlords and tenants usually agree in the lease that the tenant must reimburse the operating costs in part. For this the law (§556 Abs. 2 S. 1 BGB) opens different possibilities. The most common is an advance payment with a later billing date, which is usually agreed between the parties at the end of the year.
Advance payment of operating costs
Tenants and owners are typically required to pay a monthly advance payment to cover operating costs of a building. These advance payments are calculated based on the average costs of the previous year, and are compared with the actual costs on a yearly basis once the year is over.
Additional or running costs
The additional or running costs are the expenses incurred for the day-to-day management of an apartment and are debited by the Administrator/house management either monthly or quarterly from the accounts of the individual owners. Additional costs are e.g. elevator costs, garden maintenance, caretaker or street cleaning.
Accounting of additional costs
In principle, additional costs are those costs that arise in addition to the main rent. Incidental costs are calculated per business year. In tenancy law, they are regulated in the yearly operating cost statement made by the house management.