Utility bill deadline – you need to know these deadlinesLink to this section
As a landlord, you know one thing above all: A utility bill must be prepared and sent to your tenants once a year. In order to assert your claims, this must be done by a certain deadline. However, there is often confusion about the exact timing. When is a utility bill considered late, and what other deadlines apply? We'll explain.
All deadlines for utility bills at a glanceLink to this section
The most important deadlines for utility bill settlement are:
Deadline for preparing the utility bill:According to Section 556 Paragraph 3 of the German Civil Code (BGB), landlords must prepare the utility bill and send it to the tenants no later than twelve months after the end of the billing period.
Deadline for objection:According to Section 556 Paragraph 3 of the German Civil Code (BGB), tenants have the right to review the utility bill and raise objections within twelve months of receiving the bill.
Deadline for asserting additional claims:Landlords can make additional demands on the utility bill up to twelve months after the end of the billing period.
Limitation period for additional claims:After three years have passed since the end of the billing period, any additional claims arising from the utility bill are time-barred, unless the landlord/landlord has submitted the bill within the twelve-month period.
Deadline for preparing the utility billLink to this section
The most important deadline for claiming utility bills as a landlord is the deadline for preparing the utility bill. You have one year from the end of the billing period to do this.
ExampleThe billing period is the calendar year 2025, i.e., from January 1, 2025, to December 31, 2025. The utility bill must then be submitted to the tenants by noon on December 31, 2026. If December 31 falls on a Saturday or Sunday, the deadline is postponed to the next business day according to Section 193 of the German Civil Code (BGB). In this example, that would be January 2, 2027.
Missed the deadline? Additional payments are not possibleLink to this section
What happens if you miss the deadline and prepare the utility bill, but it's late? If you miss the deadline, you generally can't claim any additional payments, at least not when renting privately used apartments. However, you can claim a credit. In commercial tenancies, claims for additional payments remain valid even if you miss the deadline.
Good to know: Tenants are entitled to reclaim advance payments for utility costs as long as they have not been sent a bill. The reason: The previous year's advance payments for utility costs have already been made. Therefore, landlords are entitled to the bill as proof that the owners have, in turn, paid the utility costs with the advance payments. Commercial tenancies are less strictly regulated in this regard. Different agreements can always be made with tenants.
No exceptions for incorrect or incomplete utility billsLink to this section
If the utility bill was formally incorrect or incomplete, the deadline for its preparation will not be extended. No exceptions are made to the one-year deadline for utility bills.
ImportantWhen preparing utility bills, landlords must adhere to certain requirements to ensure legally compliant billing. This includes correctly allocating costs to individual tenants based on the living space or individually agreed allocation keys. Landlords should also carefully retain all relevant documents, such as invoices and contracts.
Tenants may check utility bills and file objections.Link to this section
Tenants have the right to review the utility bill and file an objection. If an error is discovered in the bill, they have one year from receipt of a legally valid utility bill to file an objection. What if tenants miss the objection deadline? After the twelfth month, any objections raised after that date can no longer be asserted.
Incorrect utility costs?! 10 common mistakes in utility bills
Creating a utility bill is fraught with pitfalls. Here are the 10 most common billing errors:
Incorrect cost types:Not all costs can be passed on to tenants. Maintenance, modernization, or administrative costs are often mistakenly included in operating costs.Missing or incorrect documents:The bill must be supported by appropriate receipts. If these are missing or incomplete, the bill for utility costs can be contested.Inaccurate distribution keys:The distribution of costs among individual tenants must be based on a fair and transparent key, e.g., based on living space or individual consumption values.Calculation error:Even simple calculation errors can lead to significant discrepancies in the bill and be objected to by the tenant.Outdated regulations:Legal regulations change regularly. It's important that the billing of utility costs is always based on the latest legal developments.Delayed delivery:The deadline for delivery of utility bills is 12 months after the end of the billing period. If this deadline is exceeded, additional payments may no longer be possible.Incomplete delivery:The utility bill must be sent to all affected tenants.Formal errors:The utility bill must meet certain formal requirements, e.g. a clear designation of the parties and a precise statement of the billing period.Lack of transparency:The utility bill must be understandable for the tenants of the property.No consideration of tenant changes:If there is a change of tenant during the billing period, the utility bill must be adjusted accordingly.
What is the 15 percent reduction right?Link to this section
In some cases, tenants are allowed to reduce their heating costs by 15 percent. According to Section 12 of the Heating Cost Ordinance, this means that the landlord is not allowed to pass on 15 percent of the heating costs to the tenants. The landlord is therefore left with these costs.
The 15 percent reduction right exists, among other things,
if the heating costs were not billed based on consumption, but according to the living spaceif the apartment is not equipped with a recording deviceif the detection device was installed incorrectlyif the landlord has not carried out an interim reading when a tenant changesif the consumption display of the heat cost allocator is defective
Special case of tenant change:A challenge for utility billsLink to this section
A change of tenant presents landlords with the challenge of correctly billing the utility costs for both the old and new tenants. If a change of tenant has occurred during the current billing period, landlords are obligated to prepare utility bills for both the new and old tenants based on the shortened period of use. The resulting utility costs are calculated pro rata for the respective periods of use.
In addition, the meter readings must be taken in order to accurately determine the consumption of each tenant.
If the apartment is vacant between two tenancies, the landlord is obligated to cover the costs of the vacancy. Exceptions are possible if there is a different contractual agreement.
To avoid legal disputes, landlords should prepare the bill particularly carefully when a tenant changes and keep all relevant documents.
Summary: Central provisions of §556 BGBLink to this section
The legal basis for the billing of additional costs and the associated deadlines is enshrined in Section 556 of the German Civil Code (BGB).
Agreement on operating costs
Section 556 of the German Civil Code (BGB) stipulates that landlords and tenants can contractually agree that the tenants will bear the operating costs. This forms the basis for allocating the additional costs to the tenant.
Landlords’ obligation to account
Landlords are required to submit an annual statement of advance payments for operating costs. This statement must meet certain formal requirements to be considered valid.
Billing period
The most important billing deadline in the context of utility bills, Section 556 of the German Civil Code (BGB), states that the bill must be delivered within twelve months of the end of the billing period.
Rights and obligations of the landlord
Obligation to create: The landlord must prepare an annual utility bill that complies with the formal requirements.Compliance with deadlines: The invoice must be received by the tenant within 12 months.Obligation to provide evidenceIn case of significant cost increases (over 10%), the landlord must provide detailed evidence and invoices.Limitation periodIf the settlement deadline is missed, the landlord generally loses the right to make additional demands.
Tenant's rights and obligations
Examination lawTenants have the right to review the utility bill and raise objections.Deadline for objectionTenants have twelve months from receipt of the bill to lodge an objection.Right of reduction: Under certain circumstances, such as incorrect heating bills, tenants can reduce the costs by 15%.Right of reclaimIf the bill is not paid on time, tenants may be required to reclaim advance payments for utility costs.
A thorough understanding of these legal principles is important for both landlords and tenants to protect their rights and fulfill their obligations. Accurate and timely utility bills ultimately contribute significantly to a smooth tenancy.
This is how we help you as a property management company with the deadlines for the utility billLink to this section
As your property management company, we help you with the deadlines for utility bills. Compliance with statutory deadlines and the thorough review of invoices and receipts are crucial to clarifying any discrepancies and securing financial claims. At Ralph, we follow the following approaches and processes:
Structured documentation of additional costsRalph can collect all relevant receipts, invoices, and documents in a digital database and store them in compliance with legal requirements. This ensures we have all the necessary information at our fingertips to prepare the utility bill on time.
Billing period update:For our customers, we always keep a close eye on the billing period and ensure that we prepare the utility bill and send it to the tenants within the deadline.
Regular communication with the tenant(s):Through regular communication with tenants, Ralph can ensure that they receive their utility bills on time. For example, we can send a reminder email or inform tenants that the bill will be sent shortly.
Fast processing of objections:If tenants raise objections to the utility bill, we will review them as quickly as possible and make any necessary corrections. This ensures that any additional charges are asserted within the twelve-month period.
Through a structured approach and adherence to the above-mentioned principles, we ensure that the deadlines for utility bill settlements are met, thus fulfilling your rights and obligations as a landlord.
A professional property management company like Ralph relieves you, as a landlord, of the burden of billing utility bills. This minimizes the risk of legal disputes and ensures smooth cooperation with your tenants.
Switch to Ralph nowLink to this section
Interested in switching to Ralph? Learn all about our services on our Property Management Costs information page. Don't hesitate to contact us and schedule a meeting now. Our team is happy to assist you.
