Administrative costs

General definition

Costs for third-party and own services for the commercial management of the building or business entity. 

Examples

  • Management fee
  • Initial letting fee
  • Letting costs incl. rental contract administration and delivery and handover of properties
  • Accounts payable and receivable management
  • Property / real estate accounting
  • Object documentation
  • Heating and operating cost billing

 


Cost unit

Owner costs (non-allocable costs)

  • All services / costs incurred in connection with the commercial management of the site / property / object as well as any vacancies.

Service charges (apportionable costs)

  • As a rule, administrative costs are not apportioned. The exception is a flat rate for the preparation of a heating and operating costs statement (ancillary costs statement). As a rule, this amounts to between 2-3% of the total ancillary costs.

Direct tenant costs

  • All services / costs incurred in connection with the commercial management of the tenant improvement or the rental property.

Notes / Special cases / Delimitations

Any services provided by caretakers are to be included in the costs on a pro rata basis. (Full costs: Salary plus ancillary wage costs).