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Advance Payment of Operating Costs: How High Can It Be?

Tenants pay operating costs in advance – but how high can the monthly advance payment be? The Süddeutsche Zeitung explains the rules landlords must follow.

Advance Payment of Operating Costs: How High Can It Be?
Photo: sueddeutsche.de

As reported by the Süddeutsche Zeitung, tenants typically pay operating costs as a monthly advance. The amount of this payment is not arbitrary: landlords must adhere to specific rules that not every landlord is aware of. An excessively high advance payment can deter potential tenants from signing a lease.

The Roman philosopher Seneca already advised about 2,000 years ago to do nothing in excess – a principle that also applies to the relationship between landlord and tenant. The advance payment should be reasonable so as not to burden either side. According to the column, there is no legal lower limit for the advance payment, but there is an upper limit: the advance payment must not be disproportionately high.

Tenants should regularly check their utility bill statement and object to any discrepancies. If the advance payment is permanently too high, they can demand an adjustment. Landlords are obliged to calculate the advance payment based on actual costs and adjust it if necessary.

Source: www.sueddeutsche.de