Real Estate Glossary

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Additional costs

Additional costs

Short definition

Ancillary costs (Nebenkosten) are ongoing operating expenses incurred by the landlord from running a property, which can be passed on to the tenant in addition to the base rent, provided this is agreed upon in the lease agreement.

Which ancillary costs can be passed on?

Only costs defined in the Operating Costs Ordinance (Betriebskostenverordnung) are apportionable. These include, among others, heating costs, water supply, waste disposal, and building cleaning.

What is the difference between warm and cold ancillary costs?

Warm ancillary costs encompass expenses for heating and hot water. Cold ancillary costs include all other operating costs, such as building cleaning, property tax, or waste collection.

Practical Context

Ancillary costs affect the actual rental burden and are frequently a starting point for queries. Unclear agreements in the tenancy agreement or a lack of transparency lead to tenants being unable to understand the costs.

Example
If individual cost items are not clearly stipulated in the tenancy agreement, questions and objections often arise during the subsequent statement of ancillary costs.

Further Links

→ Glossary article: Statement of ancillary costs

→ Blog article: How to correctly prepare an operating costs statement

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