What owners’ associations now need to bear in mind

With the 2020 WEG reform, every condominium owners’ association (WEG) was given significantly more flexibility in cost allocation. Since then, owners have been able to amend the cost allocation formula for certain costs – particularly for maintenance and repair works – by majority resolution.

A recent Federal Court of Justice (BGH) ruling has now, for the first time, set clear limits on this freedom. The Federal Court of Justice has made it clear that a change to the cost allocation formula is only permissible if it complies with the principles of proper administration and does not unfairly disadvantage any owners.

The case: Equal costs for flats of different sizes?

In the case in question, a flat owners’ association wished to allocate the costs for its heating system in future not according to co-ownership shares, but according to the so-called property principle. This would have meant that each flat would bear the same share of the costs – regardless of its size.

The result would have been that a 40 m² flat would have had to pay the same amount as a 240 m² flat.

The Federal Court of Justice deemed this allocation of costs to be inadmissible.

What the Federal Court of Justice says

In the Federal Court of Justice’s view, a flat owners’ association may, in principle, change the cost allocation formula. However, this decision is subject to certain limits.

A resolution contravenes the principles of proper administration if individual owners are significantly disadvantaged by the new allocation formula without objective justification.

In such cases, the resolution can be successfully challenged and declared invalid.

Implications for flat owners and property managers

The judgement provides greater legal certainty for owners’ associations and property managers.

Before amending the cost allocation formula, the following questions in particular should be examined in future:

• Is the new cost allocation objectively justifiable?
• Are individual owners being disproportionately burdened?
• Does the resolution meet the requirements of sound administration?
• Is the chosen allocation legally sound in the long term?

Careful preparation of the resolution can prevent subsequent actions to set it aside.

Why this ruling is so important

Until now, the Federal Court of Justice had granted owners’ associations considerable discretion regarding cost allocation under the WEG. Judicial review was largely limited to cases of obvious arbitrariness.

With this latest ruling, the Federal Court of Justice has significantly tightened these requirements. In future, it will no longer be sufficient for a resolution to be formally valid – the allocation of costs must also be reasonable, transparent and fair.

For property managers, this means that they will need to justify draft resolutions even more carefully in future and take into account the financial implications for all owners.

Conclusion

The new Federal Court of Justice ruling on the cost allocation formula marks an important turning point in the law governing condominium ownership. Whilst it remains possible to adjust the cost allocation formula within a condominium association (WEG), the Federal Court of Justice has made it clear that the interests of all owners must be given due consideration.

Anyone preparing or voting on resolutions concerning cost allocation should take the new case law into account in order to avoid unnecessary legal disputes and costly challenges to resolutions.

Summers are getting hotter and hotter – and with them, the desire for air-conditioning in one’s own flat is growing. In its judgement of 17 July 2026 (Case No. V ZR 162/25), the Federal Court of Justice (BGH) ruled that flat owners may, in principle, request the installation of a split air-conditioning system with an outdoor unit. In future, a flat owners’ association (WEG) may no longer reject such a request across the board.

What was the case about?

In the case in question, a family wished to mount the outdoor unit of a split air-conditioning system on the external wall of their balcony. This required drilling into the façade. The owners’ association refused to grant consent, citing, amongst other things, potential noise, condensation, heat emission and damage to the façade.

However, the Federal Court of Justice (BGH) made it clear that, when deciding whether to grant consent, the immediate structural impact of the measure is the decisive factor. Potential disruptions caused by subsequent operation, such as noise or heat generation, are not in themselves sufficient grounds to refuse consent.

Consent possible subject to conditions

However, the ruling does not amount to a free pass. The owners’ association may make its consent subject to reasonable technical and design requirements, for example regarding:

proper installation,
sound insulation,
condensation drainage,
aesthetic design, and
compliance with public-law requirements, such as those relating to the protection of listed buildings.

What does this mean for property owners?

For flat owners, the ruling provides greater planning certainty. Anyone wishing to install a split air-conditioning system can, in future, invoke a fundamental right to consent. The owners’ association must examine each application individually and may not reject it without objective grounds.

Nevertheless, it is advisable to prepare the application carefully and to submit technical documentation, details of the mounting arrangements, and information on sound insulation and condensation drainage at the outset. This often helps to avoid potential queries or disputes within the owners’ association.

Conclusion

With this ruling, the Federal Court of Justice strengthens the rights of flat owners and takes account of the growing demands of modern living. At the same time, it remains possible to guide the installation through sensible technical and design specifications. In future, the focus will no longer be on blanket objections, but on the assessment of the specific individual case.

Source: Federal Court of Justice, judgement of 17 July 2026 – Ref. V ZR 162/25.

From 15 April 2026, a new funding programme from the German government will come into effect, designed to significantly facilitate the expansion of charging infrastructure in multi-unit residential buildings. The aim is to make it easier for homeowners’ associations and landlords in particular to transition to electric mobility.

Attractive grants per parking space

Funding is available for both individual charging points and the underlying infrastructure. Depending on the level of development, grants of up to €2,000 per parking space are possible. This covers not only wall boxes, but also the often costly preparatory work such as cabling, grid connection and structural modifications.

Focus on holistic solutions

A key difference from previous programmes is the holistic approach: the focus is on fully preparing buildings for future charging requirements. This should enable even larger residential complexes to be equipped efficiently and sustainably.

Who can benefit?

Eligible applicants include owners’ associations, private landlords and companies with a housing portfolio. Tenants themselves cannot apply for funding, but benefit indirectly from the expansion of the infrastructure.

Key eligibility criteria

To qualify for funding, at least 20% of a property’s parking spaces must be prepared. A minimum of six parking spaces per project is also required. The maximum charging power per charging point is 22 kW.

Applications processed on a first-come, first-served basis

Applications can be submitted from 15 April to 10 November 2026. As funding is allocated on a first-come, first-served basis, it is advisable to prepare and submit applications at an early stage.

Conclusion

The new funding programme provides strong incentives for the expansion of charging infrastructure in multi-occupancy buildings. The combination of substantial grants and support for the entire building infrastructure makes electric mobility in the residential sector significantly more attractive and future-proof.