Nebenkostenabrechnung explained: your annual utility cost statement

What is a Nebenkostenabrechnung?

In most rental contracts in Germany you pay the basic rent (Kaltmiete or Grundmiete) plus a monthly advance payment for operating costs (Nebenkostenvorauszahlung or Betriebskostenvorauszahlung). These costs include, for example, heating, water, waste collection, cleaning of stairs, caretaker, garden, property tax and building insurance — but only if your contract allows the landlord to pass them on.

Once a year, the landlord compares what you paid in advance with the actual costs: the Nebenkostenabrechnung or Betriebskostenabrechnung (utility or operating cost statement). Heating and hot water are often billed by a separate metering company and appear as a separate page (Heizkostenabrechnung).

How to read it

• Abrechnungszeitraum: the billing period, usually twelve months (for example a calendar year).
• Gesamtkosten: the total costs for the whole building for each type of cost.
• Umlageschlüssel or Verteilerschlüssel: how costs are divided between flats — for example by floor area (Wohnfläche), number of persons or consumption (Verbrauch).
• Ihr Anteil: your share of each cost.
• Vorauszahlungen: what you already paid during the period.
• Nachzahlung or Guthaben: the difference — you pay extra, or you get money back.
• Often: new monthly advance payments from now on (Anpassung der Vorauszahlungen).

Important rules and deadlines

Under the German Civil Code (§ 556 BGB), the landlord generally has to deliver the statement within 12 months after the end of the billing period. If it arrives later, the landlord can usually no longer demand a back payment — unless the delay was not the landlord's fault. A credit in your favour must still be paid out.

You, as the tenant, generally have 12 months after receiving the statement to raise objections (Einwände). You also have the right to inspect the original receipts and invoices (Belegeinsicht). It is sensible to check before you pay — but do not simply ignore the payment date stated in the letter; if you disagree, tell the landlord in writing.

If you receive social benefits

If you receive basic income support from the Jobcenter or social assistance, send a copy of the statement to your Jobcenter or Sozialamt as soon as you receive it. Back payments for heating and operating costs can, under certain conditions, be covered as part of housing costs (Kosten der Unterkunft und Heizung). A credit may also have to be reported.

Key German words

What to do

1. Check the datesWhich billing period, and when did you receive the statement? Is it within 12 months after the period ended?
2. Compare with your contractAre all listed costs allowed by your rental contract? Is the living area correct?
3. Check your advance paymentsDo the advance payments listed match what you actually paid?
4. Ask for receipts if something looks wrongRequest Belegeinsicht in writing and explain which items you want to check.
5. Pay or object in writingPay the back payment, or explain your objections in writing. Keep copies.
6. Inform the Jobcenter or Sozialamt if relevantSend them the statement promptly if you receive benefits.

Useful German phrases

• Ich bitte um Einsicht in die Belege zur Betriebskostenabrechnung für …I request to inspect the receipts for the operating cost statement for …
• Gegen die Abrechnung erhebe ich folgende Einwände: …I raise the following objections to the statement: …
• Die Wohnfläche in der Abrechnung stimmt nicht.The living area in the statement is not correct.
• Bitte überweisen Sie das Guthaben auf mein Konto: …Please transfer the credit to my account: …
• Ich bitte um Ratenzahlung der Nachzahlung.I request to pay the back payment in instalments.

Where to get free or low-cost help

• Mieterverein (tenants' association)Local tenants' associations give legal advice on rent, utility bills and terminations to their members for a membership fee. Many are members of the Deutscher Mieterbund.
• Verbraucherzentrale (consumer advice centre)Consumer advice centres exist in every federal state. They help with bills, contracts, payment reminders and Inkasso letters. Some information is free; individual advice may cost a small fee.
• Migrationsberatung für erwachsene Zuwanderer (MBE)Free, confidential counselling for immigrants aged 27 and over, offered by welfare organisations with federal funding. Counsellors help you understand letters, fill in forms and contact authorities. Find an office near you with the BAMF-NAvI search.

Official sources

• German Civil Code, § 556 — agreements on operating costs and deadlines
• Deutscher Mieterbund (mieterbund.de) — tenants' associations