5.WHAT INCOME WILL I GET IF I BUY AN APARTMENT FOR RENT?
Net rental income = Warmmiete Hot Rent -/- Hausgeld Living Fee
The hot rent (Warmmiete) consists of the cold rent + utilities (Nebenkosten), i.e. the full amount of rent that the tenant pays. The amount of the hot rent is usually of interest to the tenant because it is the amount he has to pay to the landlord.
Cold rent (Kaltmiete) is the rent less utilities. The amount of this rent is of interest to the landlord as he pays the utilities further to the housing authority and the cold rent stays in his hands. From the cold rent the property owner has to pay the house management service (Hausverwaltung) as well as the monthly instalments to the community fund (Instandhaltungsrucklage). These fees vary from building to building.
The rent (Hausgeld, Wohngeld) is the total cost of the apartment, i.e. utilities + house management + public utilities office.