Do you own a property and wonder how you can effectively reduce ongoing costs? Many owners overlook significant potential savings that directly impact their financial burden. This article presents you with tried-and-tested methods to sustainably reduce your property costs.
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The topic briefly and concisely
By optimising ancillary costs, energy consumption, and maintenance, property owners can significantly reduce their ongoing expenses.
Energy-efficient renovations and the use of modern technology not only reduce costs but also increase property value and are often supported by government funding.
Utilising tax advantages and an optimised financing structure are essential levers for reducing the overall financial burden.
Your own four walls are an important part of life but also involve considerable costs. From additional costs to maintenance and energy expenses – the outlays add up quickly. But did you know that with targeted measures, you can reduce your costs while maintaining or even increasing the value of your property? As your digital companion for property evaluations, Auctoa shows you how to optimise your financial burden with data-driven decisions. Discover now which levers you can use as an owner.
Cleverly reduce ancillary costs: More than just the second rent
Service charge statements often cause confusion among many property owners – frequently referred to as the 'second rent', they typically make up about a third of the total rent. For a detached house, experts estimate service charges between €400 and €700 per month. However, there is significant potential here to reduce your monthly costs.
Start with a thorough review of your service charge statement. It's not uncommon for errors or inadmissible items to creep in. A detailed cost analysis can reveal initial savings opportunities. Even small adjustments in daily life can reduce your expenses by up to 10%.
Another important aspect is the correct heating and ventilation behaviour. Experts recommend maintaining a constant room temperature of around 19 to 21 °C, as heating up cold rooms uses a lot of energy. Ventilating by opening windows wide three times a day for five to ten minutes is more efficient than having windows slightly open constantly and also prevents mould growth. Consider switching to a cheaper electricity provider; comparison portals can help find the best tariff. These measures are the first steps to optimising your ongoing expenses before we turn to larger investments.
Keeping Energy Costs Under Control: Enhance Efficiency and Save Long-Term
Energy costs make up a significant portion of ongoing property expenses – according to the German Tenants' Association, up to 65% of ancillary housing costs fall into this area. The good news: this is often where the greatest savings potentials lie, enabling you to reduce your costs. An investment in energy efficiency pays off twice: you save money and increase the property's value.
One of the most effective measures is energy refurbishment. For houses older than 30 years, new roof insulation and better-insulated windows can save around 70% of energy. Although the initial costs for facade insulation (approximately €100 - €200 per m²) or roof insulation (approximately €60 - €150 per m²) are significant, you can reduce heating costs by up to 20%. A professional assessment can help you quantify the benefits of such investments.
The following measures can help you reduce your energy costs:
Modern heating systems: Replacing an old heating system with a modern condensing boiler can reduce energy consumption by up to 30%.
High-quality windows and doors: Look for low UD values; the building energy law (GEG) prescribes a maximum of 1.8 W/(m²·K) for new front doors.
Smart thermostats: Programmable thermostats can reduce energy consumption by up to 10% without sacrificing comfort.
Energy-efficient household appliances: A-rated appliances consume significantly less electricity than older models. Replacing a 15-year-old refrigerator can save over €50 annually on electricity bills.
Remember that many energy refurbishment measures are eligible for government subsidies (e.g., KfW, BAFA), which can significantly reduce the investment costs. Comprehensive efficient cost planning also takes these funding options into account. Optimising energy consumption is an important step, but maintenance also plays a crucial role in cost control.
Optimising maintenance costs: Preserving value, minimising expenses
Regular maintenance is essential to retain the value of your property and avoid unexpectedly high repair costs. Maintenance expenses can account for up to 20% of a property's operating costs annually. A proactive strategy helps you reduce these expenses and avoid unpleasant surprises.
One of the most effective methods is preventive maintenance. This includes routine inspections and minor repairs to prevent major issues from arising. The costs of preventive maintenance are generally much lower than the costs of major repairs. For example, the annual maintenance of a heating system costs between 150 and 250 euros, but it can prevent costly failures that could quickly amount to several thousand euros.
Here are some tips to optimize your maintenance costs:
Regular inspections: Check the roof, façade, windows, and heating system for damage or wear and tear at least once a year.
High-quality materials: Invest in durable materials for repairs and renovations. Although the initial costs are higher, you save in the long run due to lower susceptibility to repairs.
Compare quotes: Always obtain multiple quotes from qualified tradespeople for significant work.
Create a maintenance reserve: Set aside an amount monthly for future repairs. LBS recommends at least 1 euro per square meter of living space per month.
DIY for small repairs: You can often handle minor tasks like dripping taps or squeaky doors yourself, saving on tradesperson costs.
Careful planning and execution of maintenance measures is a crucial component for long-term cost reduction. If you are considering selling your property, a well-documented maintenance history can positively influence the sale price. Our experts at Auctoa are happy to advise you on how your property's condition affects its value. Contact us for a non-binding valuation or chat with our ImmoGPT. In addition to the direct costs for operation and maintenance, there are also tax aspects that can affect your financial burden.
Take advantage of tax benefits: Financial relief through smart deductions
Did you know that as a property owner, you can claim various costs for tax relief and thereby reduce your tax burden? This is an often underestimated lever for effectively cutting costs. Both landlords and owner-occupiers have opportunities here.
Landlords can deduct a wide range of expenses as business expenses. These include interest on property loans, depreciation on the building value, maintenance costs, and additional costs not passed on to tenants. The straight-line depreciation for buildings constructed after 1925 is 2% annually over 50 years.
But even as an owner-occupier, you can benefit:
Household-related services: 20% of the labour costs for tradesmen services (e.g. painters, plumbers, chimney sweeps) can be deducted directly from the tax liability up to a maximum amount of 1,200 euros per year.
Energy-efficient renovation measures: For certain energy-related measures on owner-occupied property older than ten years, 20% of the expenses (maximum 40,000 euros) can be claimed for tax relief over three years.
Listed buildings: For listed properties, particularly high depreciation for renovation costs is possible.
Accurate documentation of all relevant receipts is crucial. It is advisable to seek early tax optimisation advice or consult our ImmoGPT for initial information. The correct tax treatment of your property costs can significantly reduce your annual burden and thus contribute to long-term cost reduction. Not only ongoing costs but also financing costs offer potential savings.
Optimising financing costs: reducing interest burden and creating leeway
The financing costs, particularly the interest on mortgage loans, represent the largest single cost item for many property owners. Optimising in this area can significantly reduce your monthly expenses and thus contribute significantly to lowering costs. Even small differences in interest rates can mean savings of several thousand euros over the term of a loan.
Regularly check the current conditions in the market, especially when your fixed interest period is about to expire. A debt restructuring or a forward loan can help you secure favourable interest rates for the future. A reduction in the interest rate by just 0.5 percentage points can mean an annual saving of 1,000 euros on a remaining debt of 200,000 euros.
Here are some strategies to optimise your financing costs:
Use special repayments: If your contract allows it, make special repayments to reduce the remaining debt faster and save on interest costs. Even an annual special repayment of 1-2% of the loan amount can significantly shorten the loan term.
Adjust the repayment rate: A higher repayment rate leads to faster debt reduction and lower total interest costs. Check if your financial situation allows for an increase in repayment.
Compare offers: When refinancing or restructuring, always obtain several offers from different banks. Also, use independent financing intermediaries.
Check for subsidies: For certain projects, such as energy-efficient building or renovation, there are low-interest loans available from the KfW Bank.
A well-thought-out financing strategy is an essential factor in minimising the overall costs of your property. A favourable land financing already lays the foundation for lower overall costs. If you are considering selling your property to reposition yourself financially, a current valuation from Auctoa can provide you with a solid decision-making basis. Request a valuation now or use our ImmoGPT for an initial assessment. After reviewing various direct and indirect cost items, we summarise the key insights.
Conclusion: Reducing costs as a continuous process for property owners
Reducing costs in real estate is not a one-time project, but a continuous process of analysis, optimization, and adjustment. From reducing incidental expenses to energy-efficient renovations, proactive maintenance, utilizing tax benefits, and optimizing financing terms – as an owner, you have numerous options. Every kilowatt-hour saved, every optimized contract, and every used subsidy contributes to reducing your financial burden and securing the long-term value of your property. An annual review of all cost points can uncover savings potential of 5-15%.
Use data-driven analyses and impartial advice to make informed decisions. Auctoa stands by you as a digital partner, whether with precise real estate evaluation or through our ImmoGPT, which can answer your initial questions. Start actively managing your real estate costs today and create financial flexibility. Get in touch now for a free initial consultation.
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Additional useful links
Destatis offers a press release, which is expected to contain statistical data on housing or related economic factors. The exact topic can only be determined upon publication of the press release in March 2025.
Dashboard Deutschland provides an indicator for property prices, specifically the House Price Index (HPI) for houses, and offers data and visualizations related to property price trends in Germany.
BMWK informs about the energy transition in the building sector on its website, focusing on political measures and progress related to energy efficiency and renewable energies in buildings.
KfW provides information on its website regarding the energy-efficient renovation of existing properties for individuals, including details on funding programs and loans for energy-efficient building renovations.
Verbraucherzentrale offers energy consultation, specifically concentrating on ancillary cost statements, and explains how to understand and potentially reduce ancillary costs.
BDEW presents a study on how Germany heats on its website, offering insights into heating systems, energy sources, and heating behaviors in Germany.
Deutsche Bundesbank provides an indicator system for the residential property market, offering data and analyses on various aspects of the housing market, including prices, rents, and construction activity.
Umweltbundesamt offers data on energy consumption of buildings and tracks and analyzes trends of energy consumption in the building sector as an environmental indicator.
FAQ
Which insurances are really necessary for property owners to minimise cost risks?
Essential are the residential building insurance (against fire, storm, hail, tap water) and the private liability insurance (covers damages caused to third parties by your property). For landlords, landowner's liability insurance is also important. A term life insurance can be useful to secure loans.
How can I reduce the costs of maintaining the garden of my property?
Choose low-maintenance plants, mulch beds to suppress weeds and reduce water needs, use rainwater for irrigation, and carry out simple tasks yourself. When hiring service providers, obtain multiple quotes; the labour costs may be tax-deductible as household-related services (20% of the labour costs, up to a maximum of €1,200 per year).
Is there a rule of thumb for the amount of the maintenance reserve?
Yes, the so-called Peters formula is a guideline, but it is simpler to recommend saving 1 to 2 euros per square meter of living space per month. For older properties (older than 20-30 years), the amount should be closer to 2 euros or higher to be prepared for major repairs.
Can I, as the owner of a condominium, individually influence the heating costs?
Yes, even in a condominium, you can reduce your individual consumption and thus your share of heating costs by consciously managing your heating and ventilation behavior (setting thermostats correctly, airing briefly instead of leaving windows tilted). Modern heating cost allocators measure consumption very accurately. Also, discuss optimizations to the central heating system with the homeowners' association.
What impact does the choice of flooring have on long-term costs?
High-quality, durable flooring like parquet or quality tiles may have higher initial costs, but they are often more robust and easier to maintain, which saves on repair and replacement costs in the long run. Cheap carpets or laminates might need replacing after just 10-15 years, whereas good parquet often lasts 30 years or more.
How can Auctoa help me better assess my property costs?
A professional property valuation by Auctoa takes into account the energy condition and maintenance requirements of your property. This provides you with a clear basis to plan necessary investments for cost reduction and to understand their impact on market value. Our ImmoGPT can also answer initial questions about typical costs and savings potential.
