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If you’re looking for a new home, you’ve no doubt come across the terms ‘basic rent’ and ‘inclusive rent’. In this practical guide, we explain the difference between these two costs.
Basic rent and all-inclusive rent – what’s the difference?
People moving house for the first time, in particular, often wonder exactly what the difference is between basic rent and all-inclusive rent, and how much they’ll ultimately have to pay each month. We’ll explain it to you:
- The basic rent refers to the amount tenants pay the landlord solely for the use of the living space.
- The landlord calculates this based on the local rent index, which specifies the price per square metre of the flat. The German average price here is 8.54 euros. In major cities such as Hamburg or Berlin, it can be as high as 14 euros.
- Unfortunately, however, the basic rent alone does not represent the total cost of the flat. The difference between this and the ‘warm rent’ is made up of service charges .
- In addition to electricity, gas and water costs, these also include the building’s running costs, such as a caretaker, refuse collection charges or the cleaning service for the stairwell.
- It is not possible to give a flat rate for what percentage of the basic rent is added to the total rent as service charges. This depends on the building’s location, the age of the building and, of course, your electricity and water consumption.
- According to the German Tenants’ Association, an average of around 2.19 euros in service charges per square metre is considered normal.
- To calculate the gross rent , you therefore add the basic rent to the service charges. The ‘warm rent’ is therefore the actual monthly amount you have to pay for your flat.
- You should also bear in mind other costs which, whilst not strictly rent, are included in your monthly payments, such as internet charges, the TV licence fee or insurance.
