What Are Nebenkosten? A Simple Guide for Tenants in Germany

What Are Nebenkosten?

Nebenkosten (also called Betriebskosten) are the ongoing operating costs of a building — on top of your base rent. They include things like:

• Heating and hot water — the biggest item
• Water and sewage
• Garbage collection
• Property tax (Grundsteuer)
• Building insurance
• Janitor / building maintenance
• Stairway cleaning
• Elevator (if applicable)
• Garden maintenance

Your landlord pays these costs upfront and then passes them on to tenants. German law strictly defines which costs can be charged: the Betriebskostenverordnung (BetrKV) lists exactly 17 cost types that landlords may pass on. Everything else is illegal to charge.

Kaltmiete vs. Warmmiete — What's the Difference?

In Germany, your rent has two parts:

The advance payment is an estimate. Once a year, your landlord calculates the actual costs. If you overpaid, you get money back. If you underpaid, you owe a top-up. That document is the Nebenkostenabrechnung.

The 17 Allowable Cost Types

Under § 2 of the German Operating Costs Regulation (BetrKV), only these 17 cost categories may be passed on to tenants:

1. Public charges (e.g. property tax)
2. Water supply
3. Sewage / drainage
4. Heating
5. Hot water
6. Combined heating and hot water systems
7. Elevator
8. Street cleaning and garbage
9. Building cleaning and pest control
10. Garden maintenance
11. Lighting (common areas)
12. Chimney sweep
13. Property and liability insurance
14. Janitor (Hauswart)
15. Communal antenna / cable
16. Laundry facilities
17. Other operating costs (must be specified in the lease)

Anything else is not allowed on your bill. Common errors: administration fees, repairs, or maintenance costs being charged — that's illegal.

The Nebenkostenabrechnung — Your Annual Bill

Once a year, your landlord must send you a Nebenkostenabrechnung. It shows:

• The total costs for the billing period
• The allocation method used to divide costs (e.g. by apartment size)
• Your share as a tenant
• How much you already paid as advance payments
• Whether you owe a top-up or receive a refund

Your landlord has 12 months after the billing period ends to deliver this document. If it arrives late, you generally don't have to pay any top-up.

How Are Costs Divided?

In a building with multiple tenants, total costs must be split. The allocation key (Verteilerschlüssel) determines how:

• By apartment size — most common. An 80 m² apartment pays twice as much as 40 m².
• By number of residents — e.g. for water. A 3-person household pays more than a single person.
• By actual usage — e.g. for heating. Whoever uses more, pays more.
• Per unit — each apartment pays an equal share, regardless of size.

Which method applies is stated in your lease. For heating costs, German law requires that at least 50% must be based on actual consumption.

Your Rights as a Tenant

As a tenant in Germany, you have strong legal protections regarding Nebenkosten:

• Right to inspect receipts — You may request to see all original invoices and contracts underlying the bill (§ 259 BGB).
• 12-month objection period — From the day you receive the bill, you have one year to raise objections (§ 556 Abs. 3 BGB).
• No top-up for late bills — If your landlord sends the bill more than 12 months after the billing period ends, you don't have to pay any additional amount.
• Only allowable costs — Your landlord may only charge the 17 legally permitted cost types. Administration fees, repairs, or vacancy costs are not allowed.

9 Out of 10 Bills Contain Errors

This isn't an exaggeration — studies consistently show that the majority of Nebenkostenabrechnungen contain mistakes. The most common errors:

• Non-allowable costs charged (e.g. administration, repairs)
• Wrong allocation key — different from what the lease specifies
• Formal defects — required information missing, bill delivered too late
• Heating costs not calculated by actual consumption
• Property tax charged in full instead of the residential share only

Learn more in our article The 5 most common errors in German utility bills.

Further Reading

• The 5 most common errors in utility bills
• All deadlines for tenants at a glance
• Objection letter: template, deadlines & guide
• Utility costs too high? How to check your bill

Get Your Bill Checked

Received a Nebenkostenabrechnung and not sure if it's correct? NeKo Check reviews your bill automatically — every line item, every allocation key, every deadline. If we find errors, you get a ready-to-send objection letter.

Frequently Asked Questions