Non-Allocable Costs 2025 for Tenants in Germany

What "non-allocable" means

If costs are non-allocable, the landlord may not pass them on to tenants in the service-charge statement. For tenants in Germany this means: such items must be borne by the landlord or qualify as investments that are not considered ongoing operating costs. Check every statement carefully, collect receipts and note deadlines for objections or claims. If unsure, a discussion with the landlord or contacting a conciliation body can help. For formal steps, the local court (Amtsgericht) is often responsible.^[4]

Typical non-allocable costs

• Maintenance and repair work that represent long-term investments (repair/maintenance).
• Administrative and organizational costs of the landlord that are not defined as operating costs (payment).
• Heating modernization/heating: costs for renewal or efficiency upgrades are often investments and not allocable.
• Litigation and legal costs in cases of termination or eviction are generally not allocable (notice).

The legal basis for tenancy is in the German Civil Code (BGB), especially §§ 535–580a, and in special regulations such as the Operating Costs Ordinance (BetrKV) and the Heating Costs Ordinance.^[1][2][3]

Forms and deadlines

Key forms and template letters help you assert claims or meet deadlines:

• Termination letter (template): Use a dated, signed letter; state the reason and date, and send by registered mail for time-sensitive matters.
• Objection to the service-charge statement (template): Describe disputed items, attach copies of receipts and request a corrected statement within a set deadline.
• Filing a claim at the local court: If amicable resolution fails, the Amtsgericht is the first instance for tenancy disputes.

Example: You receive a statement with a position for heating modernization. Note the receipt date, request an itemized breakdown and set a deadline of e.g. 14 days for providing documents.

What to do with an incorrect service-charge statement

When reviewing a statement, proceed step by step:

• Collect all receipts, proof of payment and the tenancy agreement as evidence (evidence).
• Send a formal objection to the landlord with a deadline (notice).
• Contact a conciliation body or legal advice before filing a claim, if needed (call).
• If necessary, file a claim at the local court and attach all documents in order (court).

FAQ

Which costs are always considered allocable operating costs?

Allocable operating costs typically include ongoing costs such as water, waste disposal or street cleaning under the BetrKV if stipulated in the tenancy agreement.^[2]

Can I request to see receipts for a statement?

Yes. As a tenant you have the right to inspect receipts for operating costs. Request written inspection or copies.

Who decides disputes over allocability?

Usually local courts decide; higher courts such as regional courts or the Federal Court of Justice (BGH) may set precedents.^[4]

How-To

1. Collect all relevant documents: tenancy agreement, statements, proof of payment and photos of defects.
2. Draft a brief, clear objection and send it by registered mail to the landlord.
3. Request mediation or conciliation before filing a claim.
4. If necessary, prepare a claim at the competent local court and include all evidence.

Help and Support / Resources

• BGB §§ 535–580a – Civil Code
• Operating Costs Ordinance (BetrKV)
• Heating Costs Ordinance (HeizKV)

1. [1] German Civil Code (BGB), §§ 535–580a
2. [2] Operating Costs Ordinance (BetrKV)
3. [3] Heating Costs Ordinance (HeizKV)
4. [4] Information on courts and jurisdictions (Justice Portal)