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Which German service charges cannot be passed on to tenants?
Learn how to distinguish management, repairs and ineligible insurance from recoverable operating costs, and what evidence to request.
A German service-charge statement can add up correctly and still include expenses that the landlord should bear. This is particularly difficult to spot under broad descriptions such as “building services”, “insurance” or “other costs”. The heading alone does not determine whether a charge is recoverable. You need to know what service was supplied, whether it is an ongoing operating expense and what your lease says. This guide helps you organise questions and request useful evidence. It explains German residential tenancies and is not individual legal advice.
Start with the lease, not just the bill
Under section 556(1) of the German Civil Code, the parties may agree that the tenant pays operating costs. Without an appropriate agreement, a landlord cannot simply add arbitrary ownership expenses to your bill. Many leases refer to the Betriebskostenverordnung, the operating-cost ordinance. That reference does not make every invoice paid by the owner recoverable. Also check whether you pay advances followed by an annual statement, or an agreed flat amount. Those arrangements have different consequences.
Put the lease, the current statement and, if possible, the previous statement side by side. Mark new categories and changes in descriptions. Renaming a cost does not create a right to pass it on. Equally, a description you do not recognise is not proof of an error. Ask what the underlying service was before rejecting the entire amount. Keeping these distinctions clear makes your eventual objection more precise and easier to investigate.
Property management generally belongs to the landlord
Section 1(2), number 1 of the operating-cost ordinance excludes management expenses. Common warning terms include Hausverwaltung and Verwaltungsgebühr. Preparing the ordinary annual operating-cost statement is generally a management task. Bank charges, account-maintenance fees and administrative postage are also typically outside recoverable operating costs. The fact that a management company invoices them separately does not change their nature.
There is an important distinction between general management and permitted consumption-recording costs. Meter reading and certain heating or water billing services can fall within their specific statutory categories. Therefore, “all billing fees are unlawful” would be too broad. Ask which statement was prepared, which service was provided and which cost category is relied upon. A detailed answer may reveal that part of a mixed charge is eligible and part is not.
Repairs and ongoing maintenance are different
Section 1(2), number 2 of the ordinance excludes maintenance and repair expenditure in the sense of preserving or restoring the property. Replacing a broken pump, repairing a damaged window or fixing a roof leak generally falls into this area. Such work does not become a recoverable operating expense merely because the contractor includes it on the same invoice as a periodic inspection.
Regular servicing or inspections can be recoverable within a recognised statutory category. For a mixed invoice, request a separation of servicing, replacement parts and repair labour. Imagine an annual heating inspection followed by replacement of a defective component. You should assess the two parts separately. Neither automatically accepting the whole invoice nor rejecting every euro is a reliable approach. The actual work and the relevant cost category matter.
Caretaker costs depend on the tasks
Caretaker services are expressly addressed by section 2, number 14 of the ordinance. Management and repair tasks remain excluded even when the caretaker performs them. During one month, the same contractor might clean the stairs, arrange a tenancy handover and repair a door handle. Those activities do not all belong in one recoverable pot. A job description or itemised service record can help distinguish them.
Also look for possible duplicate billing. If the caretaker’s fee already covers staircase cleaning, the same work should not be charged again in full as a separate cleaning service. But a second invoice alone does not prove duplication: it might concern different areas or additional work. Compare the contract, description and invoice to establish who performed which task and when. Make the overlap explicit in your question rather than assuming it.
Insurance is not always excluded
Building-related property and liability insurance may be recoverable under section 2, number 13. A building policy or premises-liability cover can therefore belong in the statement. Legal-expenses insurance and rent-loss insurance generally protect different interests and do not fall within that recoverable category. The word Versicherung by itself does not tell you which type was charged.
Request a list of policies and premiums if the statement simply says “insurance”. For a combined policy, the allocation between risks should remain understandable. Avoid treating a high premium as proof that the category is prohibited. Recoverability and economic reasonableness are separate questions. A charge can belong to the permitted category while still warranting questions about the price, contract scope or allocation.
Vacancies, VAT and “other” expenses
When costs are allocated by area, an empty flat should not simply disappear from the building’s total area so that the remaining tenants absorb its share. Check the agreed allocation against section 556a BGB. Compare the denominator with the previous year. Different consumption figures or legitimate billing groups may explain some changes, so ask for the calculation instead of assuming that every difference reflects a vacancy surcharge.
VAT is not automatically an error either. A cleaning company’s gross invoice will often include VAT as part of the actual expense. One possible problem is adding VAT again to amounts already allocated gross. Request a clear calculation before objecting to all tax shown in the statement. Residential rent’s tax treatment and the tax on supplier invoices are not the same question.
“Other operating costs” under section 2, number 17 is not an unlimited category. The particular ongoing cost must be sufficiently agreed and legally eligible. A one-time purchase does not become an operating expense because it appears under “other”. Cable and antenna charges also require attention to the legal changes from July 2024. Historical statements and current recurring fees cannot safely be treated as identical.
Write an objection that can be answered
Identify the billing period, exact item and amount. For example: “Please explain which services are included in Hausservice and separate management and repairs from ongoing operating costs.” Request access to invoices, service descriptions and allocation calculations. A specific question is usually more useful than a general allegation that the whole statement is wrong. If several issues exist, list them separately so an answer can address each one.
Keep your message and evidence of its delivery. Under section 556(3) BGB, objections generally must be raised within twelve months after you receive the statement. That is not blanket permission to delay payment for twelve months. If payment deadlines are short, substantial sums are disputed or supporting documents are refused, seek individual assistance in time. A technical check can identify suspicious lines; deciding the final position often requires the lease, invoices and surrounding circumstances.
Read on and check your own bill
The most common disputes are covered in more depth in the guides on property management fees, on repairs and maintenance and on inspecting the invoices. Each one gives you wording for your enquiry and the statutory reference behind it.
If you want to know whether your own statement contains items like these, upload it to the free check. You see the flagged lines in the preview before paying anything.