Rent including utilities

Total Rent - Total rent, also known as gross rent, refers to the total monthly rent that a tenant pays to the landlord. It consists of the base rent (net base rent) and the utility costs (advance payment for operating costs), and thus represents the tenant’s actual monthly expense.

Composition of the gross rent

The gross rent consists of two main components. The net rent is the fee for the use of the living space and is based on the local rent index, the size of the apartment, the amenities, and the location. The second component consists of the advance payments for operating costs, which the landlord collects monthly to cover the ongoing management costs of the property.

According to the Operating Costs Ordinance (BetrKV), apportionable operating costs include, among other things, heating and hot water, property tax, building insurance, water and sewage fees, garbage collection, stairwell cleaning, elevator maintenance, landscaping, and janitorial services. Not all costs may be passed on to the tenant: maintenance reserves, administrative costs, and repairs are generally the landlord’s responsibility.

The advance payment for operating costs is based on an estimate of the projected annual costs. At the end of the billing period, the landlord prepares a statement of operating costs. If the actual costs exceed the advance payments made, the tenant owes a balance. If the costs are lower than the advance payments, the tenant receives a credit. The landlord is obligated to prepare the statement within twelve months after the end of the billing period; otherwise, their claim for additional payment expires.

Development of Rent Including Utilities in Nuremberg

Rent including utilities in the Nuremberg metropolitan region has risen significantly in recent years-driven by rising base rents on the one hand and rising energy costs on the other. Following the energy price shock of 2022/2023, poorly insulated existing buildings (energy classes G and H) in particular are struggling with high heating costs, which places a considerable burden on the rent including utilities for tenants in these properties. Landlords of such properties face the challenge that tenants perceive the apartments as expensive due to high utility costs, despite low base rents. An energy-efficient renovation can help stabilize the rent including utilities in the long term.

Rent-Inclusive Rent Neutrality in Modernization

An increasingly relevant concept in rental practice is so-called rent-inclusive rent neutrality. This principle states that the rent-inclusive rent should not increase following an energy-efficient modernization. The rent increase permitted by the modernization is offset by the savings in heating and energy costs. In practice, however, true rent-inclusive cost neutrality is difficult to achieve, as actual savings depend on individual usage habits and energy price trends. Landlords should base their calculations on realistic assumptions and transparently inform tenants about the expected changes.

Since 2023, the legal regulation on CO₂ cost allocation (§ 9 CO₂KostAufG) has also been in effect: The costs for the CO₂ price on heating energy are shared between the landlord and the tenant-the landlord’s share depends on the building’s energy efficiency class. In poorly insulated buildings (classes F, G, H), the landlord bears a higher share. This creates a financial incentive for landlords to undertake energy-efficient renovations.

Practical Tip for Nuremberg and the Metropolitan Region

In the Nuremberg metropolitan region, the average rent including utilities varies significantly depending on the neighborhood and year of construction. While in sought-after locations such as the Old Town, St. Johannis, or Erlangen-Zentrum, higher base rents account for the lion’s share of the cost, in older existing properties in Nuremberg-Südstadt or Fürth-Ronhof, high heating costs are the primary expense. We recommend that landlords adjust advance payments annually based on the most recent statement to avoid both high additional payments and disproportionate credits. When searching for an apartment, tenants should always use the rent including utilities as a benchmark, as the rent excluding utilities alone does not provide a reliable picture of the monthly cost.

For investors and capital investors, we recommend not only considering the net rental yield when making a purchase decision, but also taking the building’s energy efficiency into account. High utility costs can impair rentability and put pressure on the net rent in the long term. A well-insulated building generally achieves both higher net rents and lower vacancy risks.

Frequently Asked Questions About Gross Rent

How is gross rent calculated?

The gross rent is the sum of the base rent and the monthly advance payment for operating costs. Example: If the base rent is 700 euros and the advance payment for operating costs is 200 euros, the gross rent is 900 euros. However, the actual annual cost may differ due to additional payments or credits from the operating cost statement.

Can the landlord simply increase the total rent?

No. An increase in the base rent is only permitted under specific legal conditions, such as to bring it up to the local market rate or following a renovation. The landlord may adjust the advance payment for operating costs if this is warranted by the latest statement. Both components are subject to different legal regulations and may not be changed arbitrarily.

What should you do if you receive an unexpectedly high additional utility bill?

We recommend first carefully reviewing the utility bill and requesting to see the supporting documents from the landlord. Tenants have the right to inspect the underlying invoices and contracts. Incorrect allocation keys, non-allocable cost items, or calculation errors are common causes of inflated bills. The objection period is twelve months after receipt of the statement.

What is the difference between rent including utilities and rent excluding utilities in the rent index?

The Nuremberg rent index lists only net rent excluding utilities-that is, excluding operating costs. The rent index serves as a benchmark for rent increases under Section 558 of the German Civil Code (BGB). Utility costs are agreed upon and billed separately. When looking at apartment listings, pay attention to whether the listed rent is a net rent or a gross rent-both variants are common in practice, which makes comparisons difficult.

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