What is in the operating cost statement?

The operating cost statement shows which running costs have arisen for a building and how they were allocated to the individual flats. Tenants often pay monthly amounts in advance, which are compared once a year with the actual costs. That produces either a payment due or a credit.

What it typically contains

Running costs

These frequently include costs for water, refuse, cleaning, lighting of communal areas and similar items. Which costs may be passed on is governed by law.

Allocation

The costs are allocated to the units by a set key, often by floor area. The statement makes it possible to follow how the individual share arises.

A good statement explains itself. Anyone who has to ask has received a poor one.

When a check is worthwhile

Not every statement is correct first time. It is worth comparing the individual items with the previous year and looking out for striking jumps. The accounting period and the allocation key should also be right. If costs appear that may not be passed on at all, or an item looks disproportionately high, a query is justified. Tenants suffer no disadvantage from this; on the contrary, a checked statement creates clarity for both sides. As managers we produce statements from the outset so that they can be followed and queries are rarely needed. If they do arise, we answer them objectively and transparently, so that a statement does not become a point of dispute.

What tenants should look for

Check whether the items charged can be followed and whether the allocation key is right. If anything is unclear, a query is worthwhile. A transparent statement is part of a landlord's obligations, see What obligations does a landlord have?. How rental income and costs relate for tax is shown in How is rental income taxed?.

How we support you

We produce clear, traceable operating cost statements and are the fixed point of contact for questions from owners and tenants. That keeps the statement transparent and prevents disputes. We have looked after properties in Graz and the surrounding area since 1988. Arrange a conversation and we will show you how we take the load off your letting.