> 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/anleitung/mietverhaltnisse/mietverhaltnis-anlegen/betriebskosten/vorauszahlung-der-betriebskosten.md).

# Advance payments for operating costs

This page explains what an advance payment for operating costs is, how it works and which obligations and deadlines you have to observe as a landlord.

The advance payment for operating costs is a monthly payment the tenant makes in addition to the base rent. This advance payment serves to cover the operating costs that arise regularly (for example property tax, water, refuse collection). Under Section 556 (3) BGB, as a landlord you have to **settle the advance payments for operating costs annually** and provide this statement to the tenant. With Immodio you can complete your entire operating cost statement fully digitally in just a few minutes.

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

Under **Section 556 (3) BGB** the landlord has to settle the advance payments for operating costs annually and observe the principle of economy. This means incurring operating costs only at a reasonable level and choosing necessary and reasonable costs so as not to burden the tenant excessively.

The statement allows a comparison between the costs actually incurred, the consumption costs caused by the tenant and the advance payments made, and has to be verifiable by the tenant.

* If the statement results in a **credit**, this has to be paid out to the tenant.
* If the statement results in a **back payment**, the landlord can claim it from the tenant.

{% hint style="warning" %}
**Deadlines:** The operating cost statement has to be communicated to the tenant **within 12 months of the end of the settlement period at the latest**. Once this deadline has passed, the landlord can **no longer claim back payments**, unless they are not responsible for the delay. The tenant, in turn, has to raise objections to the statement within 12 months of receiving it. After this period objections are excluded, unless the tenant is not responsible for the delay.<br>
{% endhint %}

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<summary><strong>Advantages of advance payments for operating costs</strong></summary>

* **Transparency for tenant and landlord:** The annual statement makes the actual costs comprehensible for both parties.
* **Avoiding financial risks:** As a landlord you can settle the costs incurred directly with the tenant and therefore do not bear the risk of higher consumption.
* **Fairness by consumption:** Costs are calculated according to actual consumption or the allocation key.

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<summary><strong>Disadvantages of advance payments for operating costs</strong></summary>

* **Obligation to settle (Section 556 (3) BGB)**\
  You are obliged to produce a formally correct operating cost statement each year and on time. If you fail to do so, you can no longer claim back payments. With Immodio, however, you can create a complete operating cost statement in just a few minutes and are guided through the process step by step.
* **Risk of non-payment of back payments**\
  High back payments can cause financial difficulties for your tenants
* **Obligation to repay credits**\
  If the advance payments are set too high, you are obliged to repay the credit to the tenant.

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<summary><strong>Adjusting the advance payment for operating costs</strong></summary>

Under Section 560 (4) BGB, after an operating cost statement the advance payments for operating costs can be adjusted to a reasonable level by **either** contracting party by means of a declaration in text form.

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), the **Federal Court of Justice** set out the conditions and scope of an **adjustment of advance payments for operating costs** in more detail:

* **The basis for the adjustment** is the most recent operating cost statement available (already produced), not a statement that is still outstanding.
* **Calculating the new advance payment:** A twelfth of the back payment is normally used as the monthly increase for the following year.
* **Further adjustment possible:** Rising energy costs or other demonstrable cost increases can be taken into account. An increase citing general price rises without a specific basis is impermissible.

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