Allocable operating costs: the complete list (2026)

Which costs may the landlord pass on to the tenant? The German Operating Costs Ordinance (BetrKV) provides the answer. It lists the allocable cost types exhaustively. This article gives the overview — and shows what is expressly not allocable.

Allocable are, among others: ongoing public charges (especially property tax), water supply, drainage, heating, hot water, combined heating and hot-water systems, lift, street cleaning and waste removal, building cleaning and pest control, gardening, lighting, chimney sweeping, property and liability insurance, caretaker, communal antenna or broadband connection, laundry facilities, and other operating costs.

Heating and hot water are subject to the Heating Costs Ordinance and must be billed mostly by consumption. Insurance is allocable only as property and liability insurance, not, for example, the landlord's legal-expenses insurance.

Not allocable are administration costs (e.g. the manager's fee, the landlord's account management), maintenance, repair and refurbishment costs, contributions to reserves, and one-off costs. These are borne by the landlord.

Costs not expressly listed in the BetrKV (e.g. smoke-detector maintenance or gutter cleaning) are only allocable if they are specifically named as other operating costs in the lease. A blanket clause is not enough.

Recurring points of dispute: the line between maintenance (allocable) and repair (not allocable), hidden administration costs, and new cost types without a contractual basis. A clean separation of cost types in the system prevents this.

Is property tax allocable? Yes, as an ongoing public charge.

Are repairs allocable? No. Maintenance and repair are borne by the landlord.

What are other operating costs? Cost types that are only allocable if specifically named in the lease.

Are administration costs allocable? No, they generally cannot be passed on to residential tenants.