Having a roof over your head is good. Having everything you need to live comfortably there is even better! When you rent a home, you also have to cover water, electricity, gas, and maintenance of common areas. These additional costs are called service charges.
Service charges cover maintenance and repair work in communal areas. The landlord pays for these costs and asks the tenant to contribute. Tenants pay them in addition to the rent, and they must be clearly listed separately in the lease agreement.
What are service charges?
Expenses Related to Everyday Living
When you rent a home, you pay the landlord a sum for the roof and walls that shelter you. This is the rent.
But to live there comfortably, the property must meet basic needs: heating, electricity, water, access to clean and safe common areas, and more. That’s why an additional amount is added to the monthly rent: fixed service charges.
Service charges may also include a variable part for occasional repairs. These must remain reasonable and typically cover normal wear and tear. For example, replacing a pipe joint may be included, but a complete plumbing overhaul is not.
What Do Service Charges Cover?
The exact nature of service charges can vary, but generally they cover:
Water (cold and hot water, collective heating for private units and common areas)
Individual heating systems
Maintenance of interior and exterior common areas
Maintenance of outdoor spaces (gardens, parking lots, building surroundings)
Overall hygiene of the building (inside and out)
Building equipment (ventilation, elevators, etc.)
Taxes (such as household waste collection)
As with many things in a rental, there is no absolute truth and there are always particular situations that can be an exception. This is also the case for charges, the nature of which can often vary. But overall, however, we still find the same type of expenses for rental charges. Here are a few of them :
Paying Service Charges: Rules and Amount
Charges Must Be Listed in Your Lease
Service charges are paid in addition to the rent and must be clearly indicated in the lease as “rent + charges.” The lease may also specify the type of charges, especially for fixed costs like water, electricity, heating, and internet.
How Much Do Service Charges Cost?
The exact cost depends on many factors: the condition of the property, its size, the number of appliances, and the overall state of the building.
On average, service charges amount to €47 per square meter per year for a fully equipped home. For example, a 20 m² studio would cost around €78 per month in charges. This is an average and should be considered only as a rough guide. Costs may vary significantly depending on the property and the building.
The amount of service charges may also vary depending on the payment method.
How to pay service charges?
Provision for charges
With the provision for charges, tenants pay an estimated monthly amount to the landlord in addition to rent. This is an advance for anticipated charges such as water, electricity, or gas.
At the end of the year or at the end of the lease, the landlord performs a reconciliation. If you overpaid, you are reimbursed. If you underpaid, you pay the difference.
Fixed Fee on Charges
For furnished rentals and shared flats, you may pay a fixed monthly fee for service charges. This is similar to the provision method, but there is no reconciliation.
If you paid more than necessary, you won’t be reimbursed.
If the landlord spent more than your payment, you don’t pay extra.
This method avoids administrative burdens and disputes, which is why it is commonly used. Make sure the fixed fee reflects actual costs, including household waste tax.
Direct payment
In some cases, tenants pay fixed charges directly to the suppliers (water, electricity, internet).
Variable charges, such as one-off repairs, are usually billed by the landlord with proof of expenditure.
Direct payment reduces administrative steps but can make your monthly budget less predictable compared to a fixed-fee system.