Nebenkosten

Nebenkosten, or ancillary costs, are the expenses tenants pay in addition to the base rent (Kaltmiete) for a rented property. In Germany they cover the ongoing operating costs of the building and are governed by tenancy law, notably the Betriebskostenverordnung (BetrKV) and relevant sections of the BGB. Tenants typically pay Nebenkosten as monthly advance payments and receive an annual settlement called the Nebenkostenabrechnung.

Typical items include water and wastewater, heating and hot water, garbage collection, street cleaning, building cleaning, gardening, stairwell and elevator maintenance, lighting for common areas, property insurance, liability insurance, administration and property management costs, and a share of property tax. Some costs may be fixed; others vary with consumption or occupancy. Heating costs are often allocated separately under the Heizkostenverordnung in proportion to consumption or according to a prescribed key.

At the end of the billing year, the landlord evaluates actual costs against the advances paid and issues the Nebenkostenabrechnung. The statement must be itemized and transparent, showing the calculation basis and supporting receipts where required. If the actual costs are higher, the tenant pays the difference; if lower, the landlord refunds the excess. The Abrechnung is typically due within twelve months after the end of the billing period.

Tenants have the right to review the detailed records and receipts and to dispute any charges they believe are incorrect. Some expenditures are not eligible as Nebenkosten, and modernization or capital costs are generally not passed through in ordinary operating costs. Disputes can be resolved through negotiation or a court settlement. These rules are set by the BetrKV and Heizkostenverordnung within the framework of the German BGB.