The service charge statement: prepared with confidence

Legal basis: Section 556 of the German Civil Code and the Operating Costs Ordinance

Two sets of rules carry the entire statement: Section 556 of the German Civil Code (BGB) and the German Operating Costs Ordinance (BetrKV). The Civil Code sets the framework for the pass-through, the billing and the deadlines. The Operating Costs Ordinance defines in 17 items which cost types qualify as operating costs in the first place, from property tax to other operating costs.

The most important principle right at the start: you may only pass on operating costs if the tenancy agreement provides for it. The usual approach is a reference to the German Operating Costs Ordinance. Without such an agreement, the costs stay with you. So take a look at the tenancy agreement first: Is the pass-through agreed, and are special cost types specifically named? The answer determines which items you may later include in the statement. What a solid tenancy agreement looks like from the very beginning is shown in our guide Renting out your apartment.

Period and deadlines: twice 12 months

The deadline structure is pleasantly symmetrical and easy to remember. You bill over a billing period of no more than 12 months, in practice usually the calendar year, if only because many invoices, such as the property tax, arrive on an annual basis. Two deadlines follow: first yours, then your tenant's.

What happens if you are late? If the statement arrives too late, additional claims are excluded. Only if you are not responsible for the delay does a claim remain possible. A credit in the tenant's favor, on the other hand, is owed in any case, even if the statement is late. Missing the deadline can therefore only work against you.

That is exactly why a fixed rhythm pays off: if you prepare the statement every spring, for example, you have many months of buffer and never have to calculate under time pressure. The delivery route is part of the plan too: since receipt is what counts, the statement should not be sent out only in the last days of December.

Recoverable or not: the cost types at a glance

The heart of every statement is the correct selection of cost types. The German Operating Costs Ordinance lists 17 recoverable cost types. They stand opposite costs that never belong in the statement, however closely they relate to the building. The table shows the most important items on both sides:

Three items deserve a second look:

• Caretaker: The caretaking work itself is recoverable. If the invoice includes shares for administration or maintenance, you deduct those.
• Other operating costs: This item only counts if the respective cost type is specifically named in the tenancy agreement. A general reference to "other operating costs" is not enough.
• Vacancy: If an apartment is vacant, you bear its cost share yourself. It must not be spread across the remaining tenants.

In addition, the principle of cost-effectiveness applies to all items: with operating costs, you must keep costs and benefits in reasonable proportion. An occasional price comparison for insurance, cleaning or garden maintenance is therefore time well spent, and lower service charges please your tenants too.

Heating costs: consumption-based and with the CO2 split

Heating and hot water are the largest item in most statements and follow their own rules: under the German Heating Costs Ordinance (Heizkostenverordnung) you bill these costs 50 to 70 percent based on consumption, that is, on actually metered usage.

Since 2023 the CO2 cost split has been added: for residential buildings, the CO2 costs from fuels are divided between landlord and tenant according to a ten-tier model. The worse the building's energy performance, the larger your share as the landlord. For the statement this means: you no longer pass these costs on in full, only the tenant's share under the tier model.

Formal requirements: the four mandatory elements

Formally, your statement does not need to be a work of art. Four elements, however, are mandatory; they form the skeleton of every statement:

That is all the formalities require. A short, friendly cover letter with the result rounds off the statement and prevents queries.

Rented-out condominium: the Hausgeld statement is not the service charge statement

If you rent out a condominium, the WEG property management sends you the annual statement of the Hausgeld (the monthly fee every condominium owner pays) each year. The obvious idea of simply passing this statement on to the tenant leads you astray: the Hausgeld statement of the condominium owners' association (WEG) is not the service charge statement. It also contains items you may not pass on, first and foremost the property manager's fee, maintenance costs and the contribution to the maintenance reserve.

Your task: extract the recoverable items and use them to prepare the service charge statement for your tenant. Good property management companies take much of this work off your hands by listing the recoverable costs separately in the annual statement. When choosing a management company, look for exactly this breakdown. What the Hausgeld covers in detail is explained in our guide Hausgeld.

Typical mistakes that are easy to avoid

In practice, the same stumbling blocks come up again and again. All of them can be avoided with little effort:

• Billed too late: Once the 12-month deadline has passed, additional claims are excluded. A fixed billing date early in the year creates a reserve.
• Non-recoverable items slip in: The property manager's fee, repairs and bank charges never belong in the statement.
• Cable TV is still listed: The pass-through ended in July 2024. Update older templates.
• Hausgeld statement passed on 1:1: For rented-out condominiums, the recoverable items must be extracted.
• Allocation key without explanation: Merely stating it is not enough, the key must also be explained.
• Advance payments not deducted: Without the deduction, one of the four mandatory elements is missing.
• Vacancy passed on: You bear the cost share of vacant apartments yourself.

Build these points into your own template once and you benefit every year: the statement becomes routine.

Delegate instead of doing it yourself: a management company takes over completely

Everything in this guide is something you can do well on your own. But you do not have to: a rental property management service (for the entire rental building) or an individual unit management service (Sondereigentumsverwaltung, for a single rented-out condominium) takes over the service charge statement completely, from selecting the costs through the allocation key to delivery on time. You keep the overview, the management company does the work. What that costs is shown in our guide Costs and fees.

Frequently asked questions about the service charge statement

This guide was prepared with great care (as of July 2026) but does not replace legal or tax advice in individual cases. For special situations, such as deviating provisions in the tenancy agreement, a law firm specializing in German tenancy law can help.