What is a Nebenkostenabrechnung?
Once a year, your landlord is required to send you a settlement of all the operating costs (Nebenkosten) for your apartment — heating, water, building maintenance, insurance, and more. This document reconciles what you already paid in monthly prepayments (Vorauszahlungen) against what you actually owe for the year.
If your prepayments were too high, you get a refund. If they were too low, you get a payment demand. Most tenants find it confusing, often because the letter arrives months after the year it covers — and the numbers rarely match expectations.
What costs can legally appear on it?
German law (specifically the Betriebskostenverordnung) defines exactly which costs a landlord can pass on to tenants. Allowable costs include:
- Heating and hot water (Heizkosten, Warmwasser)
- Cold water and wastewater (Kaltwasser, Abwasser)
- Building cleaning and waste disposal (Gebäudereinigung, Müllabfuhr)
- Property insurance (Gebäudeversicherung)
- Building management (Hausverwaltung)
- Garden maintenance (Gartenpflege)
- Elevator maintenance (Aufzugswartung)
- Lighting for common areas (Beleuchtung)
What landlords cannot charge you for: repairs, mortgage costs, management fees for finding tenants, and costs related to vacancies.
The 12-month deadline rule
This is the most important thing to know: your landlord has exactly 12 months after the end of the billing period to send you the Nebenkostenabrechnung.
If your billing period is January–December 2023, the landlord must send the statement by December 31, 2024. If it arrives after that deadline, the landlord loses the right to collect any additional payment from you — even if you genuinely underpaid.
However, if you're owed a refund, you can still claim it even if the statement arrives late. The deadline only cuts one way.
How heating costs are calculated
Heating is the most complex part. Under the Heizkostenverordnung, heating costs must be split between consumption-based charges and flat charges. At least 50% (and up to 70%) must be based on your actual measured consumption — which is why your apartment has heat cost allocators (Heizkostenverteiler) or meters on the radiators.
The remaining portion is split among all tenants based on living area (Wohnfläche). This means even if you kept your apartment cold all winter, you'll pay something for heating regardless.
Checking the math yourself
You have the right to inspect the original receipts and invoices behind every line item. Request this in writing from your landlord (Belegeinsicht). You don't need to take their word for any number.
The three most common errors in Nebenkostenabrechnungen:
- Wrong floor area (Wohnfläche). If your apartment is listed as 75m² but is actually 70m², every area-based cost is inflated. Check your lease.
- Non-allowable costs included. Things like repair costs or administrative fees that should not be charged to tenants sometimes slip in. Compare every line item against the Betriebskostenverordnung list.
- Wrong billing period. The statement must cover a period no longer than 12 months and must match the period specified in your lease.
Your right to object — and the deadline
If you find errors, you must raise a written objection (Widerspruch) within 12 months of receiving the statement. After that deadline, you lose the right to contest most errors.
Send your objection by registered mail (Einschreiben mit Rückschein) so you have proof of delivery. Keep a copy of everything.
Your objection doesn't stop the payment clock — if you owe money, you generally need to pay the stated amount first (under protest, "unter Vorbehalt"), then fight the errors separately. Withholding payment can have legal consequences.
When you've already moved out
If you moved out during the billing period, you're still entitled to — and responsible for — your share of the costs for the months you were there. Your landlord must send the statement to your new address. The same 12-month deadline applies.
Some landlords try to withhold the security deposit (Kaution) until the Nebenkostenabrechnung is settled, which they're entitled to do — but only within reasonable limits. They cannot hold the entire deposit indefinitely.
What to do if you disagree
- Request Belegeinsicht (access to the original invoices) in writing
- Have the statement checked — Mieterverein (tenants' association) members get this done cheaply and fast
- Raise a Widerspruch in writing within 12 months
- If unresolved, consider mediation or small claims court (Amtsgericht) — amounts under €5,000 don't require a lawyer
Joining the local Mieterverein costs around €60–90/year and typically pays for itself the first time you have a dispute.
Key terms glossary
| Nebenkostenabrechnung | Annual operating cost settlement |
| Vorauszahlung | Monthly prepayment toward operating costs |
| Betriebskosten | Operating costs (the allowable ones) |
| Heizkostenverordnung | Law governing how heating costs must be calculated |
| Wohnfläche | Living area in square meters (used to split costs) |
| Belegeinsicht | Your right to inspect the original invoices |
| Widerspruch | Formal written objection |
| Nachzahlung | Additional payment you owe |
| Guthaben | Credit/refund owed to you |
| Mieterverein | Tenants' association |
| Einschreiben | Registered mail |
Still not sure what your letter wants?
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- ✓ Deadline for objection extracted
- ✓ Plain English summary of every charge
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Last updated: April 2026