> For the complete documentation index, see [llms.txt](https://help.immodio.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.immodio.app/en-start/guides-group/tenancies/create-a-tenancy-agreement/operating-costs/advance-payment-of-operating-costs.md).

# Advance payment of operating costs

The advance payment for operating costs is a monthly prepayment that the tenant pays in addition to the basic rent. This advance payment is used to cover the regularly incurred operating costs (e.g., property tax, water, waste disposal). According to § 556 para. 3 of the German Civil Code (BGB), you, as a landlord, must **settle the advance payments for operating costs annually** and provide this statement to the tenant. With Immodio, you can complete your entireoperating cost statement fully digitally and in just a few minutes.

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<summary><strong>Operating cost statement</strong></summary>

According to **§ 556 para. 3 BGB**, the landlord must settle the advance payments for operating costs annually and observe the principle of economic efficiency. This means causing operating costs only to a reasonable extent and choosing necessary and reasonable costs in order not to excessively burden the tenant.

The statement enables a comparison between the actual costs incurred and the consumption costs caused by the tenant, as well as the advance payments made, and must be verifiable for the tenant.

* If the statement results in a **credit**, this must be paid out to the tenant.
* If the statement results in a **balancing payment**, the landlord can demand this from the tenant.

{% hint style="warning" %}
**Deadlines:** The operating costs statement must be communicated to the tenant **no later than 12 months after the end of the billing period**. After this period, the landlord can **no longer claim additional payments**, unless he is not responsible for the delayed assertion. Conversely, the tenant must communicate any objections to the statement within 12 months of receiving the statement. After this period, objections are excluded, unless the tenant is not responsible for the delay.excluded, unless the tenant is not responsible for the delay.<br>
{% endhint %}

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<summary><strong>Advantages of advance payment of operating costs</strong></summary>

* **Transparency for Tenants and Landlords:** Through the annual billing, the actual costs are understandable for both parties.
* **Avoidance of Financial Risks:** As a landlord, they can bill the costs incurred directly to the tenant and thus do not bear the risk of overconsumption.
* **Fairness According to Consumption:** Costs are calculated based on actual consumption or an allocation key.

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<summary><strong>Nachteile Betriebskostenvorauszahlung</strong></summary>

* \*\*Obligation to Bill (§ 556 para. 3 BGB) You are obliged to prepare a formally correct and timely operating cost statement every year. If you fail to do so, you can no longer assert additional claims. However, with Immodio, you can create a complete operating cost statement in just a few minutes and will be guided step by step through the process.
* **Risk of payment defaults on additional claims** High additional payments may possibly lead to financial difficulties for your tenants
* **Repayment obligation in case of credit balance** If the advance payments are set too high, you are required to refund the credit balance to the tenant.

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<summary><strong>Adjustment of advance operating cost payments</strong></summary>

According to § 560 para. 4 BGB, advance operating cost payments can be adjusted to an appropriate amount by either party to the contract through a written declaration following an operating cost statement.

The **Federal Court of Justice (BGH)** clarified the requirements and scope of an **adjustment of advance operating cost payments** in its judgment of [**28.09.2011 (VIII ZR 294/10)**](https://juris.bundesgerichtshof.de/cgi-bin/rechtsprechung/document.py?Gericht=bgh\&Art=en\&nr=58018\&pos=0\&anz=1).

* **Basis of the adjustment** is the most recent (completed) service charge statement, but not a service charge statement that is still pending.
* **Calculation of the new advance payment:** Usually, one twelfth of the additional payment is applied as a monthly increase for the following year.
* **Additional adjustment possible:** Rising energy costs or other demonstrable cost increases may be taken into account. An increase with reference to general price increases without a specific basis is not permissible.

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