Service charge statement (Nebenkostenabrechnung) - which costs may be passed on to you?

Which service charges may be passed on?

Your landlord may pass on the running operating costs (Betriebskosten) that arise from the intended use of the building, outbuildings, facilities, fixtures and grounds (§ 1 BetrKV). These are known as recoverable service charges (umlagefähige Nebenkosten). Under § 2 of the Operating Costs Ordinance (Betriebskostenverordnung, BetrKV) the following items may be passed on:

• Property tax (Grundsteuer)
• Water supply
• Drainage
• Heating costs
• Hot water supply
• Passenger or goods lift
• Building cleaning and pest control
• Garden maintenance
• Lighting
• Chimney sweeping
• Property and liability insurance
• Caretaker (Hauswart, Hausmeister)
• Communal aerial system and broadband network
• Laundry room or washing cellar
• Other service charges

Various further operating costs can fall under other service charges. For your landlord to pass them on, the tenancy agreement must name each cost item specifically.

Which operating costs may explicitly not be passed on to the tenant?

The costs that may explicitly not be passed on are set out in § 1 Abs. 2 BetrKV:

• Administrative costs
  Your landlord may not pass on the costs of managing the property. This includes staff costs, for example for the management or the tax adviser.
• Maintenance and repair costs
  The costs of restoring the property to the condition agreed in the tenancy agreement may not be passed on either. This covers in particular repairing defects caused by wear, age and weather. The usual difference between maintenance costs and operating costs: maintenance costs do not recur.

Timing and billing period of the service charge statement

Under § 556 Abs. 3 BGB the service charge statement must reach you no later than twelve months after the end of the billing period. If your landlord bills by calendar year, that means by 31.12 of the following year. If the statement arrives late and your landlord is responsible for the delay, he can no longer demand a back payment from you. A statement that covers a period longer than twelve months is invalid.

Deadline for objecting to an incorrect service charge statement

The deadline for objections is also set out in § 556 Abs. 3 BGB. You have twelve months from receiving the statement to raise your objections (Einwendungen) with your landlord.

Service charges & flat size - measuring up pays off

Is the floor area stated in your tenancy agreement correct? Since the Federal Court of Justice (BGH) ruling of June 2018, the actual floor area, not the figure in the contract, determines how service charges are calculated. The BGH confirmed that this applies without exception. So measuring your flat pays off. The actual floor area also counts for rent increases.
TIP: If you find the actual floor area is at least 10% below the size stated in your tenancy agreement, that is a defect (Mietmangel) and entitles you to a rent reduction.