In Germany, housing is becoming more expensive for many people, and this is by no means only due to rising rents. A major cost factor for tenants are the so-called ancillary costs or “second rent”, which are rising continuously and now have a significant impact on the monthly burden for many households. But why are tenants having to pay more and more for their service charges? What factors are driving this development? And what can tenants do to reduce the burden? An overview of the most important reasons and possible savings measures.

1. energy prices: Main driver of ancillary costs

Rising global energy prices are one of the biggest drivers of utility costs. Since 2022, the cost of energy has risen considerably worldwide – and with it the price of gas and electricity. In German households, these costs have a particular impact on heating and hot water costs. The increased costs are clearly reflected on bills, especially in the winter months. Many experts predict that prices could continue to rise in the coming years, which will have a direct impact on tenants’ utility bills.

2. higher maintenance and administration costs

In addition to energy costs, expenses for maintenance and administration have also risen in recent years. Landlords are obliged to carry out regular maintenance, for example on heating systems or elevators, and have to bear ever higher costs. These costs are often passed on to the tenants, which is also reflected in the service charges. These costs have a particularly strong impact on buildings with older heating systems or in areas with a high need for maintenance.

3. higher charges for water, waste and property tax

Not only energy costs, but also the costs for water, waste disposal fees and property tax have risen in many cities and municipalities. Local authorities regularly adjust charges to cover increased costs for water treatment, waste disposal and infrastructure. Property tax, which owners pay and can pass on to tenants, is also a significant factor in ancillary costs. In regions with high property tax rates, tenants pay correspondingly more.

4. climate protection measures and modernization as additional cost factors

In several federal states, stricter climate protection measures have been introduced in recent years, which often lead to energy-efficient modernization of residential buildings. These include installing new windows, insulating walls or installing modern heating systems. These modernizations are intended to save energy in the long term, but require considerable investment. Landlords often pass on at least some of these costs to tenants, which also drives up service charges.

Forecast for 2024: further cost increases expected

Experts expect a further increase in operating costs for the coming year 2024. One reason for this is that many landlords are only now incorporating the adjustments of recent years into their bills. Added to this are rising construction costs and possible new legal requirements aimed at reducing energy consumption and protecting the environment. Although these changes make sense in order to achieve Germany’s climate targets, they are a short-term burden on tenants’ service charges.

What can tenants do to reduce their service charges?

In view of these developments, many tenants are looking for ways to reduce service charges and cushion the impact of rising prices. Here are some approaches that can help:

  1. Energy-efficient behavior: Heating costs can be significantly reduced by only heating rooms when they are in use. The use of programmable thermostats and conscious use of hot water also help to reduce costs.
  2. Energy-saving measures: Using energy-efficient appliances and switching off standby functions can reduce electricity consumption. This not only avoids unnecessary costs, but also protects the environment.
  3. Checking the service charge bill: Many tenants do not know that they can have their service charge bill legally checked. An experienced tenants’ association or an independent advice center can often uncover errors and identify potential savings.
  4. Joining forces with other tenants: If several tenants in a residential complex notice similar problems or high ancillary costs, it can be worthwhile looking for solutions together with the landlord. Savings can often be made on maintenance contracts or services if tenants raise their concerns together.

Conclusion: A burden that remains?

Rising utility costs in Germany are a complex issue caused by a variety of factors. It is a challenge for tenants to keep the burden within limits, but energy-conscious behavior and the use of advisory services can often at least mitigate the increase somewhat. In the long term, it is to be hoped that climate protection measures and investments in modern technology will help to reduce energy costs and thus make ancillary costs more affordable for everyone.