Flat fees: what they are and what they include (utilities, services)
Flat fees are regular monthly payments for the services and utilities connected with your home, paid on top of the rent. They usually include water, heating, waste collection and building management, and sometimes electricity. Their level and scope differ from flat to flat, so always find out exactly what the fees cover.
What flat fees are
Flat fees, sometimes called service charges, cover the cost of running the flat and the building. They are not the same as rent. Rent is what you pay the owner for the use of the flat, whereas the fees pay for the actual services you consume or use while living there.
In practice you will come across two models. Either you pay advance payments, which are settled once a year and can end in a refund or an extra bill, or you pay a flat fee, where the amount is set in advance. Each model has its advantages, and it is worth knowing which one applies to a particular flat, because it affects both the level and the predictability of your outgoings.
What the fees usually include
The scope of the fees varies, but most often they cover:
- Cold and hot water and sewerage.
- Heating and water heating.
- Waste collection and disposal.
- Cleaning and lighting of the common areas.
- Building management and, where there is one, the running of the lift.
Electricity in the flat is sometimes part of the fees and sometimes arranged separately by the tenant. This particular difference is the biggest source of misunderstanding, so always ask about it. Likewise, ask whether the fees include internet, television or home contents insurance, which are sometimes included and sometimes left for you to arrange. The more precisely you know what the amount covers, the better you can work out your real monthly outgoings.
The difference between rent, fees and utilities
It helps to keep three terms apart:
| Term | What it is |
|---|---|
| Rent | Payment to the owner for the use of the flat |
| Service fees | Water, heating, waste, building management |
| Utilities | Electricity and heating, separately or within the fees |
When you see low rent in a listing, check whether high advance payments for utilities will be added on top. Only the sum of all the items shows the real monthly amount.
How to read listings
When reading listings, focus on the wording about prices. Rent plus fees means you will be adding something to the rent. Rent including utilities means you pay one amount with no further advance payments.
Always establish three things: how much the rent is, how much the fees are and exactly what they include. Without that, offers cannot be compared fairly, because the cheaper rent can end up costing more.
Watch out for abbreviations and vague wording too. If a listing gives only the rent without mentioning fees, ask how much they are and what they cover. An honest offer will give you this information without hesitation.
A worked example of monthly costs
In Rezidence Pelikán a single advance payment covers all utilities and services. The tenant pays one monthly amount; the advances are settled once a year:
| Item | 1 person | 2 people |
|---|---|---|
| Rent | CZK 7,900 | CZK 7,900 |
| Fees incl. all utilities | CZK 3,600 | CZK 4,400 |
| Total per month | CZK 11,500 | CZK 12,300 |
The advance of CZK 3,600 for one person and CZK 4,400 for two includes electricity, hot and cold water, heating, waste collection and the upkeep of the common areas. That removes the risk of an unexpected top-up bill. Connection of every unit to the shared TV antenna (STA) is included in the price. Internet from the provider StarNet, with a fibre-optic cable running to a socket in every unit, is paid separately: 300 Mb/s for CZK 299, 500 Mb/s for CZK 349 and 700 Mb/s for CZK 399 a month.
What the utility advance covers
You pay for utilities and services with a single advance payment, which is settled once a year against actual consumption. For the tenant that has one big advantage: monthly outgoings are predictable and there is no risk of an unexpected top-up bill at the end of the year. That makes budgeting easier, especially in smaller flats. It also does away with the paperwork of signing contracts with individual energy suppliers.
An energy-efficient flat with stable consumption is what keeps the settlement low. In an efficient building with low energy demand, the set amount covers normal consumption without the risk of the tenant being caught out by a settlement at the end of the year.
Rezidence Pelikán uses this model. The advance covers all utilities and building management, and thanks to energy class C with a consumption of 73 kWh/m² per year, costs stay low and stable.