Allocation Key & Back Payment: Tenants in Germany

Utilities & Service Charge Billing 2 min read · published September 07, 2025
As a tenant in Germany, you often face service charge statements that use an allocation key for back payments. This article explains how to understand, check and, if necessary, contest the allocation key, which deadlines apply and which official forms or courts are responsible. The language is clear and aimed at tenants without legal background. You will find practical steps for documentation, examples of typical billing errors and guidance on when a conversation with the landlord is sufficient or when a claim at the local court is advisable. Specific notes on the Betriebskostenverordnung, the Heating Costs Ordinance and relevant BGB sections help you set deadlines correctly and understand costs.

How the allocation key works

The allocation key determines how communal service charges are distributed among tenants. It is usually stated in the tenancy agreement or in the service charge statement. In multi-unit buildings common keys are: square metres, number of persons, or unit-based keys. Check whether the applied key matches actual use; incorrect keys can lead to unfair back payment demands.

In most cases the allocation key is stated in the tenancy agreement or the service charge statement.

Check: Steps for tenants

  • Collect documents: Request receipts and invoices from the landlord and compare items.
  • Observe deadlines: Respond within review and objection deadlines, otherwise claims may become harder to enforce.
  • Use forms: Use template letters or form templates to object in writing.
  • Seek contact: Talk first with the landlord; document every conversation.
Respond to back payment demands in writing and keep copies of all documents.

Rights, laws and competent courts

Tenant rights regarding service charge deduction and review arise from the German Civil Code (BGB) §§ 535–580a[1] and the Operating Costs Ordinance (BetrKV)[2]. For heating costs there are special rules in the Heating Costs Ordinance (HeizKV)[3]. For legal disputes the local court (Amtsgericht) is competent; appeals go to the regional court and, if necessary, to the Federal Court of Justice (BGH)[4].

FAQ

What is an allocation key?
A calculation value with which landlords distribute costs (e.g. heating, water) among tenants; typical keys are square metres or number of persons.
How can I check a back payment?
Request receipts, check the allocation key, compare with the tenancy agreement and recalculate items.
What deadline do I have to object?
There is no uniform statutory objection period for all cases; however, act promptly and record the date of the statement.

How-To

  1. Check the date of the statement and note deadlines.
  2. Request all receipts in writing and save copies.
  3. Write an objection letter with reasons and send it by registered mail.
  4. Contact the local court or an advice centre if the landlord does not respond.

Key Takeaways

  • Note deadlines and document dates.
  • Collect evidence to increase chances of success in disputes.
  • Submit written objections with clear reasons and proof.

Help and Support / Resources


  1. [1] German Civil Code (BGB) §§ 535–580a — gesetze-im-internet.de
  2. [2] Operating Costs Ordinance (BetrKV) — gesetze-im-internet.de
  3. [3] Heating Costs Ordinance (HeizKV) — gesetze-im-internet.de
  4. [4] Justice portal – local courts and courts in Germany — justiz.de
Bob Jones
Bob Jones

Editor & Researcher, Tenant Rights Germany

Bob writes and reviews tenant law content for various regions. They’re passionate about housing justice and simplifying legal protections for tenants everywhere.