Non-Allocable Service Charges 2025 — Tenants Germany

Many tenants in Germany notice items on the utility bill that should not legally be passed on to them. This article explains in clear language which service charges in 2025 are non-allocable, why landlords sometimes still itemize them, and how you as a tenant can respond. You will receive concrete examples, notes on deadlines and official forms, and practical steps to contest an incorrect bill or to contact the appropriate authorities. The goal is for you to understand your rights and to decide with confidence whether objection, rent reduction, or legal action is appropriate.

What are non-allocable costs?

Non-allocable costs are expenses of the landlord that, according to the Ordinance on Operating Costs (BetrKV) or case law, may not be passed on to the tenant.^[1] Examples include administration costs, reserves for repairs, or the landlord's personal expenses, insofar as these are not explicitly permitted in the agreement or by law.

• Repairs and maintenance that the landlord must bear (e.g., roof repair if no divergent agreement exists).
• Administration costs, insofar as they are not defined as operating costs.
• Costs for the landlord's private services without relation to building operation.
• Reserves for future renovations that do not count as ongoing operating costs.

When may the landlord not allocate costs?

The landlord may only allocate costs that are permissible as operating costs under the statutory rules and agreement; the basic principles and duties are found in §§ 535–536 BGB and the BetrKV.^[2] If there is no contractual basis or the expense is maintenance rather than ongoing operating costs, allocation is generally inadmissible.

• If the lease does not agree on allocation, costs usually cannot be passed on.
• If an expense is not sufficiently documented, the tenant can request proof.

What can you do as a tenant

Proceed systematically: check the bill, request receipts, and respond in writing within deadlines. Draft your letter factually and name the specific items you dispute. A template letter or official form can help to argue the objection correctly.^[3]

FAQ

Which items are most often non-allocable?

Often administration costs, reserves for repairs, and the owner's private costs are non-allocable unless they are clearly defined as operating costs.

Which deadlines should I observe when contesting a bill?

You should respond within the deadline stated in the bill or lease; otherwise correction can become more difficult. In general: object promptly and in writing.

Which court should I contact in disputes?

Disputes are usually decided in the first instance by the local court (Amtsgericht); higher instances are the regional court (Landgericht) and the Federal Court of Justice (BGH) for legal questions.

How-To

1. Carefully review the bill and mark unclear items.
2. Request receipts and an explanation of disputed costs from the landlord in writing.
3. Respond within the specified deadlines and send the objection by registered mail or another verifiable method.
4. If no agreement is possible, consider filing a suit at the competent local court or seek advice from a legal office.

Key Takeaways

• Only operating costs according to BetrKV and the lease may be allocated.
• Request receipts and document all communication.
• The local court is the first judicial instance for tenancy disputes.

Help and Support / Resources

• Betriebskostenverordnung (BetrKV) — Gesetze im Internet
• Bürgerliches Gesetzbuch (BGB) — Gesetze im Internet
• Federal Court of Justice (BGH)

1. [1] Ordinance on Operating Costs (BetrKV) — Gesetze im Internet
2. [2] German Civil Code (BGB) — Gesetze im Internet
3. [3] Forms and template letters — Federal Ministry of Justice