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Fair distributions reduce disadvantages

The location of an apartment within a building has a noticeable impact on heating costs. Attic or corner apartments often cost more because their heating requirements are inherently higher. A consumption-independent allocation key can partially offset these disadvantages.

Why is the location of a residence crucial for heating costs?

Heating costs for an apartment depend heavily on individual heating habits. Residents who prefer warmer temperatures generally pay more. Since 1981, the Heating Costs Ordinance has mandated consumption-based billing to reduce costs and protect the environment.

However, regardless of user behavior, the location of the residence within the building plays an important role in the heating demand and thus the influence on heating costs.

A look at the factors beyond user behavior

However, there are also conditions that are independent of the heating behavior of the apartment's occupants. One of these is the apartment's location within a building. The basic heating requirement of an apartment depends heavily on its location within the building.

Impact on heating costs: Example of specific heat demand for apartments in multi-family buildings, depending on their location within the building. Source: Minol
Example of specific heating requirements for apartments in multi-family buildings, depending on their location within the building. Source: Minol
  • Interior apartments
  • They benefit from heat generated by neighboring properties and have less exterior surface area. Their heating requirements are the lowest.
  • Corner and exterior apartments
  • They have more exterior walls and therefore lose more heat. They are often up to 50% colder than interior apartments.
  • North-facing slopes
  • They receive less sunlight, which causes the rooms to cool down faster.
  • Attic apartments
  • They suffer additional heat losses through the roof and usually have a higher heating requirement than ground floor apartments.

Compensation for locational disadvantages through an adapted distribution key

A full reimbursement via the heating bill is not legally provided for. However, a adapted distribution key helps to mitigate unjustified additional costs due to the location of the residence:

  • Up to 50% of heating costs are distributed among all apartments according to a fixed share (basic costs).
  • The remaining portion depends on actual consumption.

This way, construction-related disadvantages can at least be partially mitigated.

Is it sensible to have a tiered system for base rent based on location?

Some are calling for a tiered base rent to compensate for higher heating costs due to location-specific factors. However, this solution is considered controversial.

  • Even with detached or terraced houses, there are location differences – without financial compensation.
  • The influence of location on heating requirements is difficult to measure precisely.
  • Implementation would be complex and involve high administrative costs.

Conclusion: Location significantly influences heating costs

  • Check the distribution key for your property. A higher proportion of basic costs can distribute location-related disadvantages more fairly.
  • Inform tenants transparently about why differences occur in the billing.
  • Seek professional advice, before you make any changes to the billing methodology.

Author

Title page of the handbook on heat cost accounting

Quelle: Handbuch der Wärmekostenabrechnung | Frank Peters Minol Messtechnik W. Lehmann GmbH & Co. KG, 2019

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