Which costs can I pass on to my tenants?

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Apportion operating costs
Overview
Overview

Are service charges automatically apportionable to the tenant?

The apportionable costs cannot be charged automatically to the tenant. It must be clearly stated in advance in the rental agreement whether the incidental rental costs are included in the rental price or not.  

However, you do not have to break down each individual factor; it is sufficient to state in the rental agreement that the operating costs are not included in the rent. It does not matter whether they are actually operating costs or not. Legally, this means all ancillary costs that can be apportioned to the tenant. 

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What are operating costs?

The German Civil Code (BGB) and the Ordinance on Operating Costs (BetrKV) specify exactly which expenses relating to residential property can be borne by the tenants, provided this is stipulated in the rental agreement. This also defines exactly what operating costs are in the sense of apportionable ancillary costs.

Operating costs are expenses that are regularly incurred through the use of buildings, land and facilities. 

Which ancillary costs can be passed on to the tenants?

Which expenses related to your residential property can be transferred to your tenants/occupants is prescribed by law. These are the following items: 

1. property tax

The property tax is a component of the running costs of a property and thus belongs to the apportionable operating costs.

2. insurances

Insurances that can be allocated to the tenants include, for example, homeowner's and landowner's liability, oil tank insurance, elevator insurance and glass and building insurance. 

3. garbage collection and street cleaning

When it comes to the regular removal of garbage by garbage collection or the expenses of street cleaning, these costs are apportionable. Not, however, if objects have to be purchased in order to implement them, such as the garbage cans. These costs cannot be apportioned.

4. warm operating costs

All costs relating to heating and hot water can be passed on to the tenants as "warm operating costs". However, the law stipulates that at least 50% of these total costs, but no more than 70%, can be charged to the tenants. 

5. lighting

The costs incurred by lighting the common areas around the property can be passed on to the tenant. But again, this only applies to the electricity costs incurred, not to new lamps or light bulbs. These are considered maintenance costs and must therefore be borne by the landlord. 

6. sewage charge

Waste water is part of the running costs and can therefore be passed on to the tenant. 

7. building cleaning

If the stairwells and other common areas of the property are cleaned by a cleaning company, these costs can be passed on to the tenant. 

8. janitor costs

If there is a janitor for the entire property, the costs can be partially transferred to the tenant. Partly because here, too, a distinction is made between which activities are carried out for the business and which are pure repair costs - which must be borne by the landlord/landlady. 

Example: There is a janitor for the property, but he only takes care of repairs such as changing light bulbs or replacing broken window panes. These are then repairs that must be borne by the apartment owners.

9. garden maintenance

If there is a garden around the property, the costs of maintaining it, such as mowing the lawn or cutting bushes, can be passed on to the tenant. This also includes the planting of new trees, bushes and flowers. 

10. cable connection, TV antenna, satellite dish

According to the Operating Costs Ordinance, all "audiovisual reception facilities" can be apportioned to the tenant. 

11. washroom

Tenants may also be charged for the cost of operating the communal laundry facilities. 

12. chimney sweep

The operating costs also include the expenses for the chimney sweep - even if there is no fireplace in the apartment. 

13. elevator

The operating costs of an elevator can also be passed on to the tenants. 

What are operating costs?

The German Civil Code (BGB) and the Ordinance on Operating Costs (BetrKV) specify exactly which expenses relating to residential property can be borne by the tenants, provided this is stipulated in the rental agreement. This also defines exactly what operating costs are in the sense of apportionable ancillary costs.

Operating costs are expenses that are regularly incurred through the use of buildings, land and facilities. 

Which ancillary costs can be passed on to the tenants?

Which expenses related to your residential property can be transferred to your tenants/occupants is prescribed by law. These are the following items: 

1. property tax

The property tax is a component of the running costs of a property and thus belongs to the apportionable operating costs.

2. insurances

Insurances that can be allocated to the tenants include, for example, homeowner's and landowner's liability, oil tank insurance, elevator insurance and glass and building insurance. 

3. garbage collection and street cleaning

When it comes to the regular removal of garbage by garbage collection or the expenses of street cleaning, these costs are apportionable. Not, however, if objects have to be purchased in order to implement them, such as the garbage cans. These costs cannot be apportioned.

4. warm operating costs

All costs relating to heating and hot water can be passed on to the tenants as "warm operating costs". However, the law stipulates that at least 50% of these total costs, but no more than 70%, can be charged to the tenants. 

5. lighting

The costs incurred by lighting the common areas around the property can be passed on to the tenant. But again, this only applies to the electricity costs incurred, not to new lamps or light bulbs. These are considered maintenance costs and must therefore be borne by the landlord. 

6. sewage charge

Waste water is part of the running costs and can therefore be passed on to the tenant. 

7. building cleaning

If the stairwells and other common areas of the property are cleaned by a cleaning company, these costs can be passed on to the tenant. 

8. janitor costs

If there is a janitor for the entire property, the costs can be partially transferred to the tenant. Partly because here, too, a distinction is made between which activities are carried out for the business and which are pure repair costs - which must be borne by the landlord/landlady. 

Example: There is a janitor for the property, but he only takes care of repairs such as changing light bulbs or replacing broken window panes. These are then repairs that must be borne by the apartment owners.

9. garden maintenance

If there is a garden around the property, the costs of maintaining it, such as mowing the lawn or cutting bushes, can be passed on to the tenant. This also includes the planting of new trees, bushes and flowers. 

10. cable connection, TV antenna, satellite dish

According to the Operating Costs Ordinance, all "audiovisual reception facilities" can be apportioned to the tenant. 

11. washroom

Tenants may also be charged for the cost of operating the communal laundry facilities. 

12. chimney sweep

The operating costs also include the expenses for the chimney sweep - even if there is no fireplace in the apartment. 

13. elevator

The operating costs of an elevator can also be passed on to the tenants. 

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