Successfully objecting to a service charge statement: with template letter and deadlines
Many service charge statements contain errors. It is therefore always worth having them checked in order to avoid or reduce back payments. As a tenant, you have the right to object to an incorrect service charge statement. The objection must always be made in writing and be clearly justified. We are here to help.
In short:
- A tenant must always object to a service charge statement in writing and within a twelve-month period.
- Every tenant has the right to check a service charge statement and to object to it.
- To be successful, an objection should always be well founded and verifiable.
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Which deadlines do you need to observe when objecting to a service charge statement?
In order to dispute errors in a service charge statement, the tenant must observe the 12-month objection period. This period starts on the day the tenant receives the service charge statement. An objection can be lodged within this twelve-month period – but this must not be confused with the payment deadline!
For any additional amounts demanded, tenants have only 30 days from receipt to pay. If you suspect errors in the service charge statement, you should initially pay within this deadline under reservation only: make sure to add “unter Vorbehalt der Rückforderung” (subject to reclaim) in the reference line of the bank transfer, and also inform your landlord in a letter that you are settling the back payment under reservation only. If, after checking the service charge statement, you find that you have paid too much, you can reclaim the difference from the landlord or offset it against next year’s advance payments for operating costs.
The deadlines relating to a service charge statement must always be observed!
How do you successfully object to a service charge statement?
The following factors are important for a successful objection to a service charge statement: submitting the objection in writing and on time, and giving proper reasons. The landlord should also be given the opportunity to review the service charge statement.
- An objection must always be made in writing and within 12 months.
- The objection should be sent to the landlord by registered mail (with return receipt). In the event of a dispute, this proves that the landlord actually received the objection.
- General phrases or mere assertions are not enough. The tenant should always be able to give sufficient reasons for the objection with regard to formal and substantive errors.
Info:
A formal error is, for example, an incorrect accounting period or late delivery of the service charge statement. Substantive errors can include an incorrect living space figure or service charges that were not agreed in the contract.
If the matter goes to court, the service charge statement and the objection submitted will be reviewed again. Only with a well-founded objection does a tenant have a realistic chance of a ruling in their favour. If the objection turns out to be unfounded, the tenant has to bear the costs of the proceedings.
What are the consequences of objecting to a service charge statement?
If you have lodged an objection after receiving your service charge or operating cost statement, you need not expect any disadvantages – in every case, the calculation that is more favourable to you applies:
If the review of the service charge statement results in a higher additional amount than the landlord demanded, you only have to pay the lower amount. If the recalculation results in a lower amount, you as the tenant only have to pay the lower amount as well.
What if the landlord does not respond to your objection to a service charge statement? Unfortunately, the landlord is not obliged to reply. You can of course continue to wait, or approach the landlord in person and ask for clarification. Your tenancy cannot be terminated merely because you objected to a service charge statement.
What exactly can tenants object to in a service charge statement?
A service charge statement can contain many errors. If in doubt, you as the tenant should always have it double-checked. This way you can avoid unnecessary back payments or even reclaim overpaid advance payments.
In general, you may object to any incorrect information in your service charge statement. This can include incorrect cost items that are not set out in the tenancy agreement, incorrect allocation keys, an incorrect accounting period or late delivery. Exercise your rights as a tenant towards your landlord. Always make sure the service charge statement is checked carefully, ideally with the help of a tenant protection adviser.
Free template for objecting to a service charge statement
Do you suspect your service charge statement is too high and want to object to it? So that you don’t get stuck already when drafting the letter, you can find a free template right here: simply fill in your personal details and, of course, your individual reasons!
Please note, however, that this letter is no substitute for a thorough review and proper justification. The points from the review report can then simply be copied into the letter. If you need further help with this, feel free to contact our tenant protection organisation CONNY.
Template letter
(Sender)
Tenant Sample
Sample Street 1
10000 Sample City
(To)
Landlord Sample
Sample Street 1
10000 Sample City
Sample City, ….(date)
Objection to the service charge statement for the year XXXX
Dear Mr…/ Dear Ms…,
I received your operating cost statement dated…. on…. Unfortunately, I must object to it on several points, for the following reasons: (examples)
- Your service charge statement dated… contains several items that may not be passed on to the tenant. These include the costs of repairing the lift and the property management fees…
- In the service charge statement, my advance payments were not correctly offset….
- …(further points)
Payment of this amount was made under reservation, as I already informed you in my letter dated …. Please send me a corrected service charge statement and refund the overpaid amount of …
Yours sincerely
…….
(tenant’s signature)
CONNY is on your side!
- Book a phone appointment with one of our legal experts
- We check your service charge statement for possible errors
- We lodge an objection against unlawful items
Hundreds of customers already enjoy our excellent advice as members of CONNY Tenant Protection.
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