The benefit of the balcony, which is very popular in Germany, depends on various factors for the resident, such as the size, location and features of the balcony.

There are different methods for calculating the living space of a balcony, which can affect the rent, the ancillary costs or even the purchase price. The most common methods are the Living Space Ordinance (WoFlV) and DIN standard 277. If neither of these apply, the so-called local custom and practice can also replace the set of rules.

According to the Living Space Ordinance, which applies to tenancy agreements from 2004 onwards, the floor area of balconies, loggias, roof gardens and terraces is generally counted as a quarter, but no more than half. The allowance may vary depending on the residential value of the balcony and may amount to 50% if, for example, it has a special view or construction and thus increases the residential value.

According to DIN standard 277, balconies, terraces, the space under slopes and cellar rooms are counted at 100%. The greatest advantage for the seller of the DIN 277 method is that the space under slopes as well as balconies, terraces and cellar rooms are counted at 100 per cent. DIN standard 277 is used in particular for building applications and may only be used for non-priced (privately financed) residential construction.

If the contracting parties have not agreed on a set of rules to be applied, local custom and practice may also play a role, i.e. how balconies are usually calculated in the municipality.