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If you’re looking for a new home, you’ve probably already come across the terms “base rent” and “rent including utilities.” In this practical tip, we’ll explain the difference between these two costs.
Base Rent and Rent Including Utilities—What’s the Difference?
People moving for the first time, in particular, often wonder exactly what the difference is between base rent and rent including utilities—and what your final monthly payment will be. We’ll explain it to you:
- The base 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 meter of the apartment. The German average here is 8.54 euros. In major cities like Hamburg or Berlin, it can be as high as 14 euros.
- Unfortunately, the base rent alone does not represent the total cost of the apartment. The difference between the base rent and the total rent is made up of the utility costs .
- In addition to electricity, gas, and water costs, these also include building operating costs—such as a building superintendent, trash collection fees, or the cleaning service for the stairwell.
- It’s impossible to give a flat figure for what percentage of the base rent is added to the total rent as utility costs. This depends on the building’s location, the age of the building, and, of course, your electricity and water usage.
- According to the German Tenants’ Association, an average of about 2.19 euros in utility costs per square meter is typical.
- To calculate the gross rent, you add the base rent plus the utility costs. The “warm rent” is therefore the actual monthly amount you have to pay for your apartment.
- Also keep in mind other costs that aren’t just rent but are part of your monthly payments, such as internet costs, the broadcasting license fee, or insurance.
