Scrutinising Your Service Charge Statement

Once a year, it arrives in the post: the service charge statement. It’s not unusual for it to bring an unpleasant surprise, with demands for hundreds of euros in additional payments. However, not every claim is justified. Sabine Brandl, a legal expert at ERGO Legal Protection Services, has some useful advice.

When the “Second Rent” Becomes a Cost Trap

For many tenants, service charges have effectively become a “second rent”. Rising energy prices and operating costs can hit tenants hard. “That’s why it’s all the more important to check the annual statement thoroughly,” advises Sabine Brandl. Often, costs are included that shouldn’t be passed on to tenants, such as administrative expenses or maintenance reserves. “Calculation errors, incorrect information about the size of the property, or missed deadlines by the landlord can also lead to unjustified demands for extra payments,” adds the ERGO expert.

Common Mistakes in Service Charge Statements

The most frequent issues: landlords include non-chargeable items, use incorrect distribution keys, or fail to meet legal deadlines. “According to Section 556 of the German Civil Code, the service charge statement must be delivered to the tenant within twelve months of the end of the accounting period,” says Brandl. For the year 2025, this means the statement must arrive by 31 December 2026. If it comes later, the landlord loses the right to claim extra payments, unless they can prove the delay wasn’t their fault – for example, if the energy supplier was late with their own billing. Even with a late statement, any credit owed to the tenant must still be paid. “Other typical errors include unclear descriptions of costs, charging for services that weren’t actually provided, or implausible increases compared to the previous year,” explains the ERGO legal expert. Required information, such as the accounting period and a breakdown of total costs, is often missing or incorrect.

Step-by-Step: How Tenants Should Check Their Statement

It’s well worth carrying out a systematic check. First, tenants should confirm that the statement arrived on time and includes all the required details: the property unit and accounting period, total building costs, the distribution keys used, calculation of the relevant unit’s share, deduction of advance payments, and the resulting credit or additional payment. Next, it’s helpful to compare it with the previous year’s statement. “Which costs have risen sharply? If anything seems unusual, tenants have the right to inspect the landlord’s receipts,” says Brandl. This is the only way to check whether the stated costs are genuine. Other important questions: Are all the items charged actually allowed under the tenancy agreement and the regulations on service charges? Is the stated property size correct? Is the distribution key accurate?

Legal Protection Insurance Can Help

If you have legal protection insurance, you often have the right to have your service charge statement reviewed by your insurer. “Even just claiming that the statement is faulty is enough to trigger a legal protection case, and the insurance will cover the costs,” explains Brandl. Before instructing a solicitor, tenants should obtain confirmation of cover from their insurer to be on the safe side.

Raising an Objection – The Right Way

If you spot mistakes, you should act. “Tenants have one year from receiving the statement to lodge an objection,” explains the expert. The objection should be made in writing and specify the exact points of concern. However, any additional payment must still be made within 30 days. If you’re unsure about the service charge statement, it’s advisable to pay the extra amount under reservation and check the statement promptly. If your objection doesn’t succeed, it may be worth seeking an out-of-court settlement through advice centres such as tenants’ associations or specialist service providers. They can help check the statement and provide arguments for negotiations with the landlord. “In complex cases or where large sums are involved, legal assistance may be the best solution,” concludes Brandl.