One of the questions every building manager hears most: “Does the tenant or the owner pay for this?” The answer depends mainly on the lease agreement. There is, however, a common practice that applies when the lease does not say otherwise.
The general rule
The tenant, who uses the property day to day, usually pays the regular operating expenses. The owner, who keeps the value of the property, usually pays one-off expenses, repairs and improvements.
Typical split of expenses
| Expense | Usually paid by |
|---|---|
| Common electricity and water | Tenant |
| Stairwell cleaning | Tenant |
| Heating (fuel) | Tenant |
| Regular lift maintenance | Tenant |
| Regular boiler service | Tenant |
| Lift repair or replacement | Owner |
| Boiler replacement | Owner |
| Roof insulation, facade painting | Owner |
| Building insurance | Owner |
| Reserve fund contributions | Owner |
The table is indicative. The management fee, for example, is handled differently from building to building. If the lease says something different, the lease applies.
What to check in the lease
- That it explicitly states the tenant pays the regular common expenses.
- Who pays the management fee and reserve fund contributions.
- How the heating settlement is handled if the lease ends mid-winter.
- That the tenant receives a copy of the statement to check.
Heating oil left in the tank
When a tenant moves out, they have often prepaid fuel they did not use. Common practice is to measure the tank when they leave and offset the value of the unused fuel against the next tenant or the owner. Recording the date and quantity avoids disputes. For the allocation methods, see our guide to heating cost allocation.
A clear statement for everyone
The simplest way to avoid misunderstandings is a statement that shows every expense category clearly. With BeeManager every resident receives a detailed PDF statement, so everyone can see exactly what they owe.
Note: this article is for information only and is not legal advice. For specific cases, consult a lawyer.