Checking your service charge statement: Are the landlord’s invoices enough?

The case: Invoices disclosed, payment records withheld

The landlord of a Berlin apartment demanded an additional payment under the service charge statement for 2013. The tenant was allowed to inspect the invoices, but she refused his additional request to see the payment records. The local court initially awarded part of the claim. The regional court dismissed it, and the Federal Court of Justice upheld that outcome on appeal on points of law (paragraphs 1 to 3 and 11).

The decisive issue was the refusal to allow scrutiny. The court did not find that every charge was incorrect. The claim was unfounded at that time because the justified request for inspection had not been met. This distinction also matters for additional payment demands today (paragraphs 11 and 12).

What else can a payment record reveal?

An invoice shows what a service provider charged. A payment record can show the amount actually paid. It can help identify reductions, discounts or simple accounting errors. Tenants do not need to allege fraud or justify a particular distrust. Their general interest in checking the statement is sufficient (paragraphs 13 to 15).

The inspection right covers existing payment records for the service charges allocated to tenants, whether the landlord uses accrual accounting or cash accounting. In simple terms, accrual accounting concerns the period to which a service relates; cash accounting turns on payment within the accounting period. Under the latter method, payment records are essential for checking the statement (paragraphs 14, 16, 17 and 19).

A missing payment record does not automatically mean that a charge cannot be allocated to tenants. Under accrual accounting, a service may be included even if it was not yet paid for during the accounting period. The court identifies this as a reason for questions or objections concerning individual items. The judgment does not justify automatically removing every unpaid invoice (paragraph 16).

May the landlord provide the documents digitally?

Yes. The current section 556(4) of the German Civil Code requires the landlord to allow inspection of the underlying records on request and expressly permits electronic provision. Tenants should therefore not reject access merely because paper originals are not supplied. The 2020 judgment addresses which records are covered, not every technical requirement for digital access today.

Our practical recommendation: Check that the requested invoices and payment records are actually accessible and legible. Identify missing files or payments that cannot be matched to a charge. A folder full of invoices does not establish that the requested payment records have also been provided.

Why you should not simply ignore the payment demand

The right to withhold payment recognised by the court is temporary and requires a justified request for inspection that has not been met. Whether and to what extent it applies needs to be assessed in the individual case. It is neither a permanent reduction nor general permission to stop paying all ongoing rent. Unjustified deductions can create arrears. Have the precise payment obligation assessed before withholding money.

There is also a separate objection deadline: Under section 556(3) of the German Civil Code, objections must generally be communicated by the end of the twelfth month after receipt of the statement. Later objections are generally excluded unless the tenant is not responsible for the delay. Do not assume that an outstanding request for documents resolves every deadline issue.

How to prepare for a review

Our suggestion for a focused request: Identify the accounting year and expressly request access to both invoices and the corresponding existing payment records. Keep a record of what was requested, offered or refused. This documentation helps distinguish checking the charges from any temporary right to withhold payment.

• Keep the statement, tenancy agreement and evidence of the date of receipt.
• Check the additional amount demanded against advance payments already made.
• Expressly request the invoices and corresponding payment records.
• Record missing documents, discrepancies and specific objections in writing.
• Have the objection deadline and possible payment consequences checked before withholding money.