Utility Costs: Allocation Key for Tenants in Germany

Utilities & Service Charge Billing 3 min read · published September 07, 2025

As a tenant in Germany, the allocation key in the utility bill can affect the amount you must pay. If keys are assigned incorrectly or formulas are unclear, you should act promptly: check documents, file a written objection and set a clear deadline for the landlord. Documentation like bills, meter readings and photos is important for later clarification. In many cases an agreement can be reached; if not, legal steps before the local court may be considered. This article explains in plain language which steps tenants should take, which evidence is needed and when it makes sense to seek legal advice to protect your rights in Germany.

What does the allocation key mean?

The allocation key determines how certain operating costs are distributed among tenants, for example by living area, number of persons or consumption. Differences in the key change cost distribution and thus your arrears or refund. Legal rules on operating costs and billing should be known by tenants.[1]

Document every step in writing and keep receipts organized.

When should tenants object?

As soon as you receive the utility bill, check the allocation key, total costs and individual items. Give the landlord a short deadline (e.g. 14 days) to explain or correct discrepancies. If deadlines pass or the landlord does not respond, gather evidence and consider next steps.

  • Set a deadline: Request an answer within a clear period, for example 14 days.
  • Collect evidence: bills, meter readings, lease, photos and payment receipts.
  • Object in writing: Send an informal dated objection to the landlord.
  • Legal review: If necessary, consider proceedings before the local court.

Common errors in the allocation key

Errors often occur with incorrect area figures, wrong number of persons or inappropriate distribution. Check calculation steps and request the underlying receipts. The Operating Costs Ordinance lists permissible cost types and can help assess items.[2]

Evidence and documentation

Collect the original bill, lease, previous bills, meter readings and photos. Note conversations and deadlines. Well-documented cases are easier to resolve and present in court.

Well-organized evidence increases the chances of a quick resolution.

FAQ

How long do I have to check the utility bill?
Check the bill immediately upon receipt and respond promptly; set a short deadline for the landlord to comment. Statutory limitation or billing deadlines may apply, so review these with legal support if needed.[1]
What if the landlord does not respond?
Send a written reminder with a deadline and state that you may consider legal action. Gather all evidence and consult advice if necessary.
Can I reduce rent because of a wrong allocation key?
Rent reduction may be possible for significant impairment of usability; an incorrect allocation key alone does not automatically justify a reduction. Seek individual advice or legal counsel.

How-To

  1. Check the bill immediately and set a deadline for a response.
  2. Gather documents: lease, meter readings, past bills and payment proofs.
  3. Send a written objection and request correction or explanation.
  4. Seek advice if necessary, e.g. tenant association or lawyer.
  5. If no agreement: consider clarification before the local court.

Key Takeaways

  • Early review prevents unnecessary costs.
  • Set clear short deadlines for responses.
  • Written objections and complete evidence are crucial.

Help and Support / Resources


  1. [1] German Civil Code (BGB) §§ 535–580a
  2. [2] Operating Costs Ordinance (BetrKV)
  3. [3] Federal Court of Justice (BGH) decisions on tenancy law
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.