Service-charge statements: a guide for property managers (2026)

The service-charge statement (German: Betriebskostenabrechnung) is one of the most error-prone annual duties for landlords and management companies. Even small formal mistakes render an additional claim invalid. This guide covers which costs you may pass on, which deadlines and formal requirements apply, and how to build the statement so it holds up.

Allocable are only the cost types exhaustively listed in the German Operating Costs Ordinance (BetrKV) — e.g. property tax, water and sewage, heating and hot water, lift, street cleaning and waste, building cleaning, gardening, lighting, chimney sweeping, property and liability insurance, caretaker, and the „other operating costs“ (only if specifically named in the lease).

A valid pass-through clause in the lease is a prerequisite. Without it, the costs are part of the gross rent.

Administration costs (e.g. the manager's fee), maintenance and repair costs, and refurbishment are not allocable. Cleanly separating these from operating costs is the most common source of error — and the first thing a tenant's lawyer checks.

Costs are distributed to tenants via an allocation key. Common keys are living area (m²), number of persons, residential units or measured consumption. If no key is agreed, § 556a BGB makes living area the statutory fallback.

For heating and hot water, consumption-based billing under the Heating Costs Ordinance takes priority.

The statement must reach the tenant no later than twelve months after the end of the accounting period (§ 556 (3) BGB). After that, an additional claim is generally excluded — but the landlord must still pay out any credit balance.

The tenant, in turn, has twelve months from receipt to raise formal or substantive objections.

Tenants usually pay monthly advance payments. The statement compares these against the actual costs; the difference is the additional payment or refund. After a statement, advance payments may be adjusted going forward.

A valid statement contains at least: the total costs, the allocation key with an explanation, the calculation of the tenant's share, and the deduction of advance payments — presented so that an average tenant can follow it logically and arithmetically. The tenant also has a right to inspect the underlying receipts.

The same five mistakes recur: billing non-allocable costs (repairs, administration); missing the deadline so the claim lapses; a wrong or unexplained allocation key; not deducting vacancy (the landlord bears the pro-rata costs); and failing to separate heating from „cold“ operating costs.

The biggest risks — calculation errors, missing receipts, retroactive changes — are avoided with end-to-end software: receipts are captured at booking, the allocation key per cost type is applied automatically to every unit, and the finished statement is archived as an immutable snapshot. Every line item stays traceable — and saves the argument with tenants.

Which costs may I pass on? Only the operating costs listed in the BetrKV, and only with a valid pass-through clause in the lease.

What deadline applies? The statement must reach the tenant no later than twelve months after the end of the accounting period (§ 556 (3) BGB).

What happens if I miss the deadline? Additional claims are generally excluded; a credit balance still has to be paid out.

May I change the allocation key? Only within the statutory and contractual limits; heating costs must remain consumption-based.

Do I have to show receipts? Yes, the tenant has a right to inspect them.