Regulation on Operating Costs

Regulation on Operating Costs - The Regulation on Operating Costs (BetrKV) provides an exhaustive list of the cost categories that a landlord may pass on to the tenant as operating costs. It forms the legal basis for utility billing and lists a total of 17 cost categories in Section 2 - ranging from property tax to water, heating, and garbage collection to building insurance. Only costs listed in the BetrKV and agreed upon in the lease as apportionable may be charged to the tenant.

The 17 apportionable operating cost categories

The BetrKV lists the following cost categories:

1. Property tax
2. Water supply
3. Sewerage
4. Heating (hot water and space heating)
5. Hot water supply (for central systems)
6. Elevator
7. Street cleaning and garbage collection
8. Building cleaning and pest control
9. Garden maintenance
10. Lighting (common areas)
11. Chimney sweeping
12. Property and liability insurance
13. Building superintendent
14. Community antenna / broadband cable
15. Laundry facilities
16. Other operating costs (if specifically listed in the lease agreement)
17. Laundry facilities

Not apportionable are maintenance and repair costs, administrative costs, and reserves-these are borne by the landlord.

Requirements for the statement

The operating costs statement must be provided to the tenant within twelve months after the end of the billing period (Section 556(3) of the German Civil Code (BGB)). If the landlord misses this deadline, they can no longer demand additional payment-but they must still pay out any credit owed to the tenant. The statement must be formally correct: it must list the total costs per item, specify the allocation formula, calculate the tenant’s share, and deduct any advance payments made.

Allocation Keys and Fair Distribution

The BetrKV does not prescribe a uniform allocation key-landlords and tenants may agree on different keys in the lease agreement. Common options include allocation based on living space (standard), number of occupants, consumption (for metered utilities), or co-ownership shares (in WEG complexes). If no contractual provision exists, § 556a BGB stipulates that living space serves as the allocation key. For consumption-based costs such as heating and hot water, the Heating Costs Ordinance (Heizkostenverordnung) mandates consumption-based billing anyway (at least 50-70% consumption-based).

For new landlords in the Nuremberg metropolitan region, it is worth carefully reviewing the allocation keys in the lease agreement: In multi-unit buildings with units of varying sizes, the choice of allocation key can result in significant differences in the annual statement. Landlords with tenants who have particularly high consumption (large families, home offices) benefit from a higher consumption-based share in the heating bill.

Allocability and Accrual - Overview

Cost Type	Allocable?	Note
Property tax	Yes	§ 2 No. 1 BetrKV
Heating / Hot water	Yes	At least 50-70% consumption-based (HeizkV)
Water / Sewer	Yes	§ 2 No. 2, 3 BetrKV
Elevator operation + maintenance	Yes	§ 2 No. 6 BetrKV
Garden maintenance	Yes	§ 2 No. 9 BetrKV
Building insurance	Yes	§ 2 No. 12 BetrKV; only on a pro-rata basis
Maintenance / repairs	No	Billed to the landlord
Property management fees	No	Management fees are not apportionable
Maintenance reserve (WEG)	No	Reserve is not an operating cost
Smoke detector maintenance	Yes (if agreed)	Must be specified in the lease (other operating costs)
Legionella testing	Yes (if agreed)	Must be specified in the lease (other operating costs)

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that landlords in the Nuremberg metropolitan area list the apportionable operating costs individually in the lease agreement-while a general reference to the BetrKV is sufficient under current case law, a detailed list creates transparency and reduces disputes. Pay particular attention to the “Other Operating Costs” item: Only costs that are specifically named in the lease agreement can be allocated here-such as maintenance costs for smoke detectors, Legionella testing, or gutter cleaning. Without an explicit agreement in the lease agreement, these costs are not apportionable. In Nuremberg, property tax items carry significant weight due to the municipal assessment rate of 535% (as of 2025) and should be estimated realistically when calculating advance payments. An advance payment that is too low places an unnecessary burden on the tenancy during the annual settlement.

Frequently Asked Questions

Which operating costs are the most expensive?

By far the largest item is heating costs (including hot water), which account for 50-70% of total operating costs depending on the building and energy source. In Nuremberg, the average operating cost burden is approximately 2.50-3.50 euros per square meter per month; in poorly insulated older buildings without energy-efficient renovations, this figure can be significantly higher. Property tax and water/sewage are the next largest items. For tenants, this means: Advance payments should reflect these proportions-an advance payment that is too low for heating costs regularly leads to significant additional payments when the annual statement is issued, which can result in conflicts.

Can the tenant review the operating cost statement?

Yes, the tenant has a legal right of inspection regarding the supporting documents-they can review the original invoices, fee notices, and allocation keys with the landlord or property management company and have copies made. The tenant must raise any objections to the statement within twelve months of receipt (Section 556(3) of the German Civil Code). Landlords should allow tenants to review the documents promptly-refusal to do so may be considered a breach of duty. In Nuremberg, specialized tenant associations and the German Tenants’ Association offer an affordable bill review service that tenants can use if they have doubts.

What happens if the landlord misses the billing deadline?

If the twelve-month period expires after the end of the billing period, the landlord can no longer assert any additional claims-even if the statement would rule out a credit balance for the tenant. However, the landlord must pay out any credit balance owed to the tenant even if the statement is late. The deadline applies only to additional claims, not to the billing itself. Landlords in the Nuremberg metropolitan area should therefore maintain strict deadline management-especially when managing multiple rental units, professional property management is recommended to ensure reliable monitoring of deadlines.

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