Service charges in Germany (Betriebskosten): what you pay

What counts as a service charge

Under § 556 (1) BGB the parties may agree that the tenant bears service charges. These are the costs that ownership of the land, or the intended use of the building, ancillary buildings, installations and the land, cause the owner on a continuing basis (BetrKV § 1). § 2 BetrKV lists them. The main items are:

• the property’s running public charges, namely the property tax (Grundsteuer);
• water supply and drainage;
• operation of the central heating and hot-water systems, and of a lift;
• street cleaning and refuse collection;
• cleaning of common parts and pest control;
• garden maintenance and lighting of common areas;
• chimney sweeping;
• building and liability insurance;
• the caretaker (Hauswart);
• communal aerial or broadband distribution;
• laundry facilities;
• “other service charges” within the definition that the first sixteen items do not cover (No. 17).

Not chargeable as service charges are administration costs (staff, supervision, accounting) and maintenance and repair costs (§ 1 (2) BetrKV). A lease cannot turn those into service charges by calling them that. The Code says a deviation from § 556 (1), (2) sentence 2, (3) or (3a) to the tenant’s disadvantage is void (§ 556 (5)).

Lump sum or advance payment

The parties may agree that service charges are shown as a lump sum (Pauschale) or as an advance payment (Vorauszahlung). Advance payments may only be agreed in an appropriate amount (§ 556 (2)). With advance payments the landlord must settle each year; with a lump sum there is no yearly settlement, but the landlord can pass on increases to the extent the lease provides, by a text-form declaration that names and explains the reason (§ 560 (1)), effective from the start of the month after next (§ 560 (2)). A lump sum must be reduced when costs fall (§ 560 (3)). After a statement either side may adjust the advance payments to an appropriate level by declaration in text form (§ 560 (4)).

The yearly statement

Advance payments must be settled annually, observing the principle of economic efficiency (§ 556 (3)). Two deadlines matter:

The Code states the first deadline for additional claims by the landlord. The landlord is not obliged to give partial statements.

A worked calculation (not real figures): if the accounting period is the calendar year 2025, the statement must arrive by 31 December 2026. If it arrives on 20 March 2026, you have until 31 March 2027 to raise objections.

Allocation key

Unless otherwise agreed, costs are divided by the share of living space (§ 556a (1)). Costs that depend on recorded consumption or on causation must be allocated by a key that takes account of the different consumption or causation. If the lease specified another key, the landlord can by text-form declaration, only before the start of an accounting period, decide that costs are allocated in future by recorded consumption, and where the costs were previously in the rent, the rent must be reduced accordingly (§ 556a (2)). For a rented condominium, unless otherwise agreed, the key used between the owners applies, unless it is contrary to equitable discretion (§ 556a (3)).

Seeing the receipts

On request the landlord must allow the tenant to inspect the receipts on which the statement is based. The landlord may supply them electronically (§ 556 (4)). Ask in writing, within your objection period.

Heating and hot water

The Heating Costs Ordinance requires that at least 50% and at most 70% of the cost of operating a central heating system be allocated by recorded heat consumption of the users, and the rest by living or usable area or enclosed volume (§ 7 (1)). If the landlord does not bill according to consumption as required, the user may reduce their share by 15% (§ 12 (1) sentence 1). A reduction of 3% applies where a remote-readable meter is missing as required, or where the required consumption information is not provided or only incompletely (§ 12 (1) sentences 2 and 3). Those reductions do not apply between an owner and the owners’ association in a condominium.

Fibre-optic charges

A fibre-optic provision charge under the Telecommunications Act may be charged only if the measure is implemented economically; for a costly measure only if the landlord obtained three offers where possible and chose the most economical (§ 556 (3a)).

Check list for your statement

1. Does your lease mention service charges? If not, they are not owed.
2. Is each item on the BetrKV list or covered by No. 17?
3. Has the statement arrived within 12 months of the end of the period?
4. Are the key and the shares (living space, consumption) explained?
5. Do you need to see the receipts?

Which professional to consult

A tenants’ association or a lawyer specialised in tenancy law can examine a statement. Payotte does not recommend individuals.