Do you think the back-payment from your service charge statement is incorrect? Specify the disputed costs and request the corresponding receipts. A blanket objection does not reliably protect your rights. Obvious errors, on the other hand, can be challenged immediately – prior inspection of the receipts is not always necessary for this.
This post covers Residential tenancy agreements with advance payments for service charges. Different rules apply to a flat-rate service charge and to commercial premises. Our article on [topic] helps with classification. Demarcation of residential and commercial tenancy law.
At a glance
- Landlord deadline: The billing statement must be received no later than twelve months after the end of the billing period. Late subsequent claims are fundamentally excluded; an exception applies in the event of blameless delay.
- Tenant's deadline: Substantive objections must generally be received by the landlord within twelve months of receipt of a formally correct statement of account. Unblamed delays may be exempt.
- No twelve-month payment term: Objections and the due date of a balancing payment must be assessed separately. An appeal alone does not defer the payment obligation.
- Access to vouchers: It also includes proofs of payment. In accordance with § 556 section 4 of the German Civil Code (BGB), the landlord is permitted to provide the documents electronically.
- Specific complaint: State the cost type, amount and reason. You may object to obvious calculation errors or non-rechargeable repairs without prior inspection.
- Refused access: A provisional right to withhold performance may exist as long as and to the extent that requested vouchers/documents to which there is an entitlement are not made accessible.
Deadlines: billing deadline and objection period
By when must the service charge statement be received by the tenant?
Service charge prepayments must be accounted for annually. After Section 556 paragraph 3 of the German Civil Code (BGB) the statement of account must be received by the tenant no later than twelve months after the end of the accounting period. For the 2025 calendar year, this is fundamentally the 31st December 2026. Sending it out in good time is not sufficient.
After that, the landlord can generally no longer demand an additional payment. They must justify an exception if they are not responsible for the delay. A tenant credit balance is not cancelled by the delayed statement.
By when do you have to object?
Your substantive objections must generally be communicated to the landlord within twelve months of receiving a formally correct statement. Here too, the decisive factor is the Receipt, not the date of dispatch. A legal written form is not prescribed; for documentation purposes, an email or letter with verified proof of delivery is recommended. You should retain the content and dispatch documents.
A formally invalid statement of account does not trigger the objection period in that respect (Federal Court of Justice [BGH], judgment of 08.12.2010, VIII ZR 27/10If only severable provisions are affected, the period for the remaining part can nevertheless run. Therefore, in case of doubt, do not rely on an alleged invalidity.
Merely requesting receipts does not automatically extend the deadline. If the landlord refuses to grant requested access in good time and thereby prevents specific objections, the statutory exception for a delay through no fault of one's own may apply. In this case, the obstacle should be documented and the objections submitted promptly after the obstacle has been removed. Errors that are already discernible must be addressed immediately in a separate letter of complaint.
The objection period, payment and limitation period are different
The twelve months are not a payment period. A formally correct statement of account can give rise to a due additional payment claim, even though the objection period is still running. Whether default occurs also depends on the general prerequisites, in particular Section 286 of the German Civil Code (BGB).
For a billing credit or a claim for repayment, the three-year limitation period regularly applies. After Section 199(1) of the Civil Code (BGB) it generally begins at the end of the year in which the claim has arisen and the creditor is aware, or through gross negligence is unaware, of the relevant circumstances and the debtor. Limitation does not replace the period for raising objections. Nor does an excessively high advance payment automatically result in an immediate right to the repayment of all advance payments.
Formal requirements for billing
In a building with multiple flats, the statement must regularly show:
- which total costs per cost category are allocated to the billing unit,
- which allocation key applies and – where necessary – how it works,
- how your share is calculated from this and
- which advance payments are deducted.
The billing period and allocation to your flat must be transparent. However, individual invoices do not have to be attached to the statement. Internal preparatory calculations also do not always have to be disclosed: the Federal Court of Justice generally allows the specification of already adjusted total costs to suffice (judgment of 20.01.2016, VIII ZR 93/15Whether this adjustment is correct is a matter for the substantive review.
A missing, required distribution key or an incomprehensible calculation of your share can be a formal error. If the necessary clarity is lacking for only a separable cost item, this does not automatically render the entire statement invalid. The remaining, independently verifiable part can remain valid.
Late access is not a formal billing error. It concerns the exclusion of supplementary claims. Similarly, an incorrect floor area figure, incorrectly calculated prepayments or an erroneous temporal allocation are frequently substantive errors, provided the calculation method remains discernible.
Unclear generic descriptions can complicate the examination. Our article on this covers a concrete example Collective items such as „general electricity“ and „caretaker/gardening/stairs“. The decision of the Local Court (AG) of Hamburg discussed there concerns this statement of account; it does not follow from this that any grouping together of related costs is prohibited.
Substantive errors: Which costs you should check
Contractual apportionment and categories of operating costs
The tenancy agreement must provide for the assumption of operating costs (§ 556(1) sentence 1 BGB). For this, the agreement that the tenant bears the operating costs may already be sufficient; the usual types of costs do not have to be listed individually (BGH, judgment of 10.02.2016, VIII ZR 137/15).
Section 2 BetrKV describes the types of costs that can be passed on and, with number 17, contains an additional category for other operating costs. Such further, ongoing costs must be specifically agreed (Federal Court of Justice, judgement of 07.04.2004, VIII ZR 167/03). The designation „other operating costs“ alone is not sufficient for this.
According to Section 1 paragraph 2 of the Ordinance on Operating Costs (BetrKV), administration as well as maintenance and repair do not count as operating costs. When reviewing caretaker invoices, therefore, check whether repair or administrative activities have been deducted. Ongoing maintenance, on the other hand, can be apportionable depending on the type of cost. A modernisation measure itself also does not belong in the service charge statement.
Cable fees: The previous apportionment of ongoing monthly broadband base fees in accordance with Section 2 No. 15 letter b of the Ordinance on Operating Costs (BetrKV) ended on 30 June 2024. Such fees no longer belong in the billing for subsequent periods on this basis. To be distinguished from this are system operating costs that remain permissible and a fibre-optic provision charge under the special statutory conditions.
Apportionment key and living space
Primarily, the contractually agreed key is decisive. In the absence of another agreement, the floor area generally applies; recorded consumption or recorded causation must be taken into account pursuant to Section 556a (1) sentence 2 of the German Civil Code (BGB). In the case of rented condominium property, [this] provides Section 556a paragraph 3 of the Civil Code (BGB) barring any deviating agreement, fundamentally the standard applicable between the apartment owners. The Heating Costs Ordinance contains overriding special rules for heating and hot water costs.
In the case of an area-based distribution according to statutory requirements, the decisive factor is fundamentally the actual living space of your flat in relation to the actual total living space (Federal Court of Justice [BGH], judgement of 30.05.2018, VIII ZR 220/17A tolerance of up to ten percent does not apply here. This is to be distinguished from the question of a rent reduction due to insufficient living space.
Uneconomic costs
A high invoice is not yet proof of uneconomical conduct. The decisive factors are the costs and benefits of the service under the specific local conditions. As a rule, the tenant bears the burden of presentation and proof for an asserted breach; a nationwide utility cost index alone is not sufficient (Federal Court of Justice, judgement of 06.07.2011, VIII ZR 340/10).
Indications of a breach include unnecessary services, duplicate orders or comparable local offers at significantly lower prices. Such indications should be documented for an objection. Details are explained in our article on Burden of proof in the event of a breach of the principle of economic efficiency.
Calculation errors and advance payments
Comparing the deducted advance payments with your own bank transfers is worthwhile in almost every case. The amounts, the usage period and a potential double billing of the same service can also frequently be checked using the information in the statement. Some of these errors can be identified even without external supporting documents.
If the landlord also demands higher monthly advance payments, this adjustment must also be checked. You can find more about this in the article on increase in service charge prepayments.
Inspection of receipts: scope and electronic provision
Since 1 January 2025, it has regulated Section 556(4) of the Civil Code (BGB) the right to inspect receipts for residential tenancy. Upon request, the landlord must allow inspection of the billing receipts and is entitled to provide these receipts electronically. This enables you to check the costs charged and their distribution.
Invoices, proofs of payment and contracts
The right of inspection also includes the associated payment receipts (BGH, judgment of 09.12.2020, VIII ZR 118/19For example, this allows you to check for price reductions or discrepancies between the invoice and the payment. You do not need to justify any particular distrust of your landlord. The contracts underlying the utility bill may also be viewed, provided they are needed for the verification.
Electronic receipts are permissible
The landlord may provide the receipts electronically. Section 556(4) sentence 2 of the German Civil Code (BGB) expressly permits this. The older decision on original receipts (Federal Court of Justice, judgment of 15.12.2021, VIII ZR 66/20) therefore no longer supports the blanket rejection of digital documents in residential tenancy law. The principle regarding the submission of original receipts continues to apply to commercial premises; see the separate delineation for details.
Check whether the provided files are complete, legible and can be assigned to the billed items. You should name missing pages, inaccessible files or specific discrepancies individually and request that they be supplemented. A mere reference to the possibility of electronic provision does not replace actual access to the documents.
Consumption data of other flats
In the case of joint consumption-based billing, the individual consumption data of other users within the economic unit may also be viewable. This allows, for example, the sum of the individual consumptions to be compared with the total consumption. This statement is derived from BGH, judgment of 07.02.2018, VIII ZR 189/17; a special interest in this is not required.
How do you request access?
State the flat, the billing year and the required documents. Ask for electronic provision or for suggested dates for inspection. If the inspection takes place on site, coordinate the location, accompaniment and the possibility of taking photographs or making copies in advance. There is no entitlement to the sending of paper copies solely because you prefer them.
A response deadline appropriate to the scope and urgency – for example, 14 days – makes subsequent record-keeping easier. This is a practical suggestion, not a statutory standard deadline. The request and proof of its receipt should be kept in one's own file. As the end of the objection period approaches, any errors already identified should be contested in parallel.
Give concrete reasons for objections
For a transparent complaint, name the cost item and explain what is allegedly wrong with it. However, you do not need to discover every error first by inspecting receipts: a doubly charged advance payment, a listed repair or a recognisably incorrect key can be objected to immediately.
If, on the other hand, it is a matter of the actual amount of costs incurred or of consumption figures, you regularly require the billing documents. Make use of the properly offered inspection. If this is refused, you do not have to invent details from documents that are withheld from you. In the payment process, the landlord generally bears the burden of presentation and proof for the correct recording, compilation and distribution of costs; specific objections raised by the tenant and the separate burden of proof regarding the principle of economic efficiency remain to be distinguished from this.
Example of a specific complaint
In the case of an explicitly designated repair, you can write something like: „I am disputing the caretaker costs item in the 2025 statement. The 240 euros listed therein for the repair of the building's front door are maintenance costs. Please deduct this amount prior to allocation and let me know the corrected balance.“ The example assumes that this information actually appears in your statement or the receipts.
The original case of the Local Court of Munich
The original law firm post reported on the judgment of the Munich Local Court of 27.01.2012 (472 C 26823/11): A tenant was ordered to pay around 467 euros in additional heating and hot water costs. He considered the consumption to be too high, but did not make use of his right to inspect the vouchers and did not explain his objection in any detail. According to the case review at the time, the claim for payment was successful.
The case illustrates the problem of unfounded blanket objections. It does not mean that every complaint without prior inspection is excluded. What is crucial is the nature of the objection and the possibility of verifying the underlying facts.
Right of retention and payment obligation
For as long as and to the extent that the landlord does not allow lawfully requested inspection, the tenant may temporarily withhold a service charge payment (BGH [Federal Court of Justice], VIII ZR 189/17 and VIII ZR 118/19). In this case, the landlord should be notified which vouchers are missing and that the right to withhold performance is being exercised. The right of retention, on the other hand, does not exist simply because you have not yet reviewed the documents – the prerequisite is a lawfully requested, but not permitted, inspection of vouchers.
If proper inspection has been offered or the documents are lawfully accessible electronically, you must not postpone the examination arbitrarily. The scope and duration of any withholding must correspond to the existing obstacle to inspection. In particular, a refused document inspection is not a blanket reason to suspend the entire ongoing rent.
Following payment already made: A right to repayment does not arise solely from the fact that receipts are still missing. This requires an independent legal basis, such as a payment actually not owed according to Section 812 of the German Civil Code (BGB). Objections and potential grounds for exclusion must still be examined.
A payment made under express reservation of recovery may be considered while the review is still pending. However, it neither replaces specific objections nor compliance with the objection period.
offset credit
A set-off requires in particular reciprocal, similar claims, a due and enforceable counter-claim, and a declaration made to the landlord (§§ 387, 388 BGB). Contractual restrictions and their validity must be examined separately. „Uncontested or legally established“ is not a general requirement of § 387 BGB, but can be relevant in the case of a contractual clause.
Protects against certain counterclaims Section 556b (2) of the Civil Code (BGB) the offsetting against a rent claim despite a conflicting contractual provision. For this, a notification in text form at least one month before due date may be required. Therefore, do not offset an alleged credit balance against future payments without examination.
Checklist: How to check your billing
- Log access: Save the statement and envelope or email; note the end of the billing period and the deadline.
- Check traceability: Types of cost, keys, own share and deducted advance payments must be recognisable. Check late receipt separately.
- Compare with your own documents: Use the tenancy agreement, bank transfers, living space, period of use and your own meter readings.
- Request receipts: Specifically identify invoices, proofs of payment and required contract or consumption documents. Electronic provision is permitted.
- Notify objections in good time: Name recognisable defects immediately. The complaint must reach the landlord before the deadline; merely sending it is not sufficient.
- Use insight and add objections: Document missing documents and discrepancies. A mere request for receipts does not automatically secure all subsequent objections.
- Assess payment separately: Is there a justified retention, an undisputed partial amount or a reason for payment under reserve? If in doubt, seek legal advice before a payment deadline expires.
Frequently asked questions about service charge statements
By when does the landlord have to issue the utility bill?
For residential tenancies with advance payments, generally within twelve months after the end of the billing period. The decisive factor is receipt by the tenant. Late additional claims are barred if the landlord is responsible for the delay. A tenant credit balance remains in place.
How long do I have to make objections?
Generally twelve months from receipt of a formally correct statement of account. Your specific objections must be received by the landlord within this period. An exception applies in the event of a delay through no fault of your own. The deadline is not a payment due date.
Do I have to inspect the documents before every objection?
No. You can directly object to recognisable calculation errors or explicitly billed repairs. For doubts about actual costs or consumption values, however, inspection of receipts is regularly required. A blanket „too expensive“ is not sufficient.
Is the landlord allowed to provide only digital receipts?
Section 556(4) sentence 2 of the German Civil Code (BGB) has permitted electronic provision in residential tenancy law since 1 January 2025. Paper originals therefore cannot be demanded across the board. You should specifically object to missing, illegible or inaccessible files.
Am I allowed to withhold the additional payment until I've inspected the receipts?
A provisional right to withhold performance may exist as long as and to the extent that the landlord does not grant the requested inspection to which the tenant is entitled. You cannot simply ignore a proper offer or electronically accessible documents. Your objection alone does not suspend the obligation to pay.
Which living area counts towards the billing?
When distributing according to statutory floor area standards, the actual floor area of your flat is generally used in relation to the actual total floor area. The former ten per cent tolerance no longer applies to this. Other effectively applicable distribution standards must be examined separately.
Can I offset a credit balance against a back payment?
That may be possible. Check whether the counterclaim is due and enforceable, whether any contractual clauses preclude it, and whether prior notification is required. The set-off must be declared to the landlord; simply transferring a lesser amount is not sufficient as a reliable procedure.
Do you have doubts about your service charge statement?
Our firm advises tenants and landlords on disputes regarding service charges. For the review, we require the tenancy agreement, the complete statement, available receipts and previous correspondence. Please also inform us of the date of receipt and any pending deadlines. More about our Tenancy law advice in Cologne. For a no-obligation enquiry, you can reach us by phone, email or via the Contact form.
Read more
- Unclear lump-sum items in the service charge statement – Case review on the Hamburg Local Court.
- Principle of economic efficiency and burden of proof – why a general cost comparison is not enough.
- adjust service charge advance payments – Benchmark for the next monthly payment.
- Residential or commercial lease? – which legal framework applies to your contract.
Author and legal notice
This post explains service charge statements for residential tenancies with advance payments. It does not replace a review of the tenancy agreement and the specific statement. Additional regulations may apply to rent-controlled housing.
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