Non-Allocable Costs for Tenants in Germany

As a tenant in Germany, you will often encounter items on the service charge statement that the landlord is not allowed to pass on. This article explains in plain language which expenses are typically non-allocable, how to check the statement, which receipts to request and when a reduction of the payment is justified. I refer to relevant laws such as the BGB^[1] and the Ordinance on Operating Costs^[2], show common errors in statements and give practical steps to file objections or seek clarification at the local court (Amtsgericht).^[3] I also explain which official forms exist, how to collect payment records and when to seek legal advice.

What are non-allocable items?

Non-allocable costs are typically those not listed in the Ordinance on Operating Costs or those that are investment or financing costs. Common examples include:

• Investment and modernization costs (e.g. renewal of roof or facade).
• Interest and loan repayments the landlord pays for purchase or renovation.
• Depreciation (wear and tear allowances) on the building.
• Ongoing maintenance or repair work, insofar as it does not count as operating costs.
• Private expenses of the landlord, management fees without contractual agreement or impermissible lump sums.

How to check the service charge statement

First check whether the billing period is correct and whether all listed items are explained in writing. Watch for lump sums without receipts and items that represent investment costs prohibited under the BetrKV.

• Request receipts: Ask the landlord for copies of invoices and contracts (documents) within a period of two to six weeks.
• Check billing period: Do the stated periods match your tenancy?
• Check contract clauses: Does your lease contain deviating agreements on cost allocation?
• Verify meter readings and consumption: Do the recorded values match your records?

Forms and authorities

Relevant forms and authorities for tenants include:

• Claim form (civil action): Used when you sue to claim a payment or declaration; example: you file a claim at the competent local court because the landlord does not provide receipts despite requests.
• Application for an order for payment (dunning procedure): A formal means to assert unpaid claims; rarely used by tenants but relevant in payment disputes.
• Defect notice (usually informal): Send a documented defect notice to the landlord if, for example, heating issues make consumption implausible.

FAQ

Which costs are typically never allocable?

Investment costs, interest, depreciation and the landlord's private expenses are generally not allocable; the BetrKV is decisive.^[2]

Can I reduce a back payment if receipts are missing?

Yes, you can object to the statement and withhold payment in whole or in part until clarification if the landlord does not provide receipts; check statutory deadlines under the BGB.^[1]

Where should I turn if an agreement cannot be reached?

If no agreement is possible, the local court (Amtsgericht) is responsible for tenancy disputes; you can file an action there or seek a judicial decision.^[3]

How-To

1. Check: Read the lease and the service charge statement carefully and note unclear items.
2. Request receipts: Ask in writing for all related invoices and contracts within a reasonable deadline.
3. Send an objection: Draft a short written objection with a deadline and send it by registered mail or electronically with proof of receipt.
4. Seek advice: Obtain legal advice if the landlord does not respond or the sums are significant.
5. Court action: If necessary, file a claim at the competent local court; document all steps and evidence.

Help and Support

• Bürgerliches Gesetzbuch (BGB) – Gesetze im Internet
• Betriebskostenverordnung (BetrKV) – Gesetze im Internet
• Justizportal des Bundes und der Länder – Gerichte
• Bundesgerichtshof (BGH) – Decisions

1. [1] § 535 BGB – German Civil Code
2. [2] Ordinance on Operating Costs (BetrKV)
3. [3] Justice Portal of the Federal and State Governments – Court Information