Everything you need to know about service charge statements (operating cost settlement)

What are Nebenkosten (additional costs)?

Nebenkosten are the additional costs that tenants pay on top of the basic (cold) rent to cover ongoing services and operating expenses related to the building. These typically include:

• Heating and hot water costs

• Water and sewage charges

• Cleaning of the building and maintenance of common areas

• Waste collection

• Building insurance

• Property management and caretaker services

• Lighting in stairwells, basements and entrances

What is Nebenkostenabrechnung (service charge statement)?

The Nebenkostenabrechnung is the annual service charge statement that the landlord issues.
It shows:

• the actual operating costs incurred for the building during the accounting period, and

• compares these with the advance payments (Vorauszahlungen) made by the tenant over the year.

When must the statement be issued?

The landlord must provide the Nebenkostenabrechnung within 12 months after the end of the accounting period (usually the calendar year).

• If the landlord fails to issue the statement within this 12-month period, they lose the right to claim any additional payments for that period.

What does the statement include?

A proper service charge statement should include:

• A detailed list of all cost types (heating, water, waste, cleaning, insurance, etc.)

• The allocation method used to distribute costs among tenants (e.g. by floor area, number of occupants, or actual consumption)

• A comparison between:

  • the advance payments made by the tenant, and

  • the actual costs incurred

• A clear indication whether:

  • there is an amount due (Nachzahlung) from the tenant, or

  • a credit (Guthaben) in favour of the tenant

What happens after receiving the statement?

If there is an additional amount to pay (Nachzahlung):

• The tenant must usually pay the outstanding amount within a reasonable period, often around 30 days.

If there is a credit (Guthaben):

• The landlord must refund the overpaid amount to the tenant promptly, or offset it against future payments.

Tenant rights

Tenants have the right to:

• Inspect all original invoices and receipts on which the statement is based.

• Submit a written objection within 12 months of receiving the statement if they find errors, unjustified charges or unclear items.

• Withhold additional payments until the statement has been fully checked and any doubts clarified.

Common errors in Nebenkostenabrechnung

• Charging non-allowable costs, such as:

  • major repairs or structural works that do not qualify as operating costs.

• Incorrect allocation of costs between tenants (e.g. wrong floor area, wrong allocation key).

• Charging old or duplicate costs that belong to previous years.

Practical tips

• Keep copies of all statements and correspondence with your landlord.

• Check the service charge statement carefully, or have it reviewed by a tenants’ association or adviser.

• Pay special attention to heating and water costs, as these often make up the largest portion of Nebenkosten.

• Do not pay any additional amount until you are sure that the statement is correct and comprehensible.

Conclusion

The Nebenkostenabrechnung is an essential tool to guarantee transparency and fairness between landlord and tenant. By understanding your rights and obligations, reviewing the statement carefully and challenging unjustified items, you can protect yourself against excessive or incorrect charges and maintain a clear, trust-based rental relationship.

The editorial and author team of the website aims to provide accurate information through thorough research and multiple sources. Nevertheless, errors may occur or information may be incomplete. Therefore, the information provided here should be regarded as an initial point of reference, and you should always contact the competent authorities and professional services for binding and up-to-date advice.