Utility Bills in Germany: Kaltmiete, Warmmiete, and Nebenkosten in 2026

In German rental agreements, it’s important to distinguish between two amounts: Kaltmiete—the base rent for the apartment—and Warmmiete—the monthly payment that includes an advance for utilities and maintenance costs. These expenses are more commonly referred to as Nebenkosten or Betriebskosten. They are often the reason for additional payments after the annual recalculation.

What Is Included in Kaltmiete, Warmmiete, and Nebenkosten

Kaltmiete indicates how much the apartment itself costs, excluding most associated expenses. It is typically used as a reference when comparing offers and the Mietspiegel.

Nebenkosten are advance payments for expenses that the landlord may allocate among tenants, provided this is stipulated in the lease agreement and complies with the rules of the Betriebskostenverordnung. In the listing and the lease agreement, the amount of Nebenkosten is usually listed separately.

Warmmiete consists of Kaltmiete and Nebenkosten. For your personal budget, Warmmiete is the most important: this is the amount you usually pay to your landlord each month. At the same time, electricity for the apartment itself, internet, phone service, and sometimes gas may be paid for through separate contracts directly to the providers.

How much can utility bills cost?

Average figures depend on the building, region, heating system, square footage, number of residents, and utility contracts. Therefore, it’s safer to consider Nebenkosten not as a fixed price, but as an advance payment that is later reconciled with actual expenses.

According to the current Betriebskostenspiegel from the Deutscher Mieterbund for the 2024 billing year, the average Betriebskosten across Germany were 2.67 euros per square meter per month. When all possible types of expenses are added together, the so-called “second rent” could reach 3.68 euros per square meter per month. For an 80-square-meter apartment, this amounts to approximately 214 euros per month on average, and significantly more for a more expensive building or in cases of high heating costs.

Don’t automatically apply these figures to a specific apartment. In Munich, Stuttgart, and other expensive cities, the total cost of housing is often higher not only because of Nebenkosten but also because of Kaltmiete. In Bremen, Leipzig, and other less expensive cities, the total Warmmiete may be lower, but the actual utility costs still depend on the building and consumption.

How the Annual Recalculation of Nebenkosten Works

Each month, the tenant pays an advance payment. At the end of the billing period, the landlord prepares a Betriebskostenabrechnung: they compare the building’s actual expenses with the advance payments already made and calculate the share attributable to each specific apartment.

There are two possible outcomes:

• If the advance payments exceeded the actual expenses, the tenant receives a refund;
• If the actual costs turn out to be higher, the landlord issues a Nachzahlung—an additional payment;
• If the advance payment clearly does not correspond to actual expenses, the parties may adjust the monthly amount going forward.

According to § 556 BGB, the landlord must provide the final settlement no later than 12 months after the end of the billing period. For example, if the billing period ended on December 31, 2025, the usual deadline for the statement is December 31, 2026. If this deadline is missed, the landlord generally cannot demand additional payment if the landlord is responsible for the delay. The tenant also has up to 12 months after receiving the statement to raise objections.

What Expenses May Be Included in Betriebskosten

The Betriebskostenverordnung lists the types of expenses that can be apportioned among tenants. In practice, the following are often included in the Abrechnung:

• water supply and sewage;
• heating and hot water;
• trash collection and street cleaning;
• cleaning of the entrance hall and common areas;
• lighting in the entrance hall, basement, courtyard, and other common areas;
• landscaping and maintenance of the property grounds;
• A building superintendent, if their work relates to building maintenance rather than the landlord’s administrative tasks;
• elevator maintenance;
• Chimney sweep services and maintenance of heating systems;
• building insurance and the landlord’s liability insurance;
• Property tax (Grundsteuer), if its allocation is stipulated in the lease agreement;
• cable TV or an antenna, if such costs are legally included in the specific building.

What is generally not included in Nebenkosten

Not every expense incurred by the landlord can be passed on to the tenant. Carefully check your Abrechnung to see if the following appear:

• repairs to the apartment, facade, roof, or building systems;
• administrative expenses of the property management company;
• the landlord’s bank fees;
• the landlord’s legal expenses;
• reserves for future repairs;
• fines, penalties, or expenses resulting from the landlord’s errors;
• services provided by the Hausmeister, provided they are actually related to management or repairs rather than routine maintenance.

If an item seems questionable, ask for Belegeinsicht—the right to review supporting documents. This is a standard part of verifying the Abrechnung and is not a contentious action.

How a tenant can check the Abrechnung

It’s best to check this step by step:

1. Check the billing period and the date you received the Abrechnung.
2. Check whether the apartment, its square footage, and your share of the costs match what’s in the lease agreement.
3. Check which expenses are listed as umlagefähig.
4. Compare the advance payments you made throughout the year with the amount on the Abrechnung.
5. Check your meter readings if water, heat, or gas are billed separately.
6. Ask for copies of or access to the bills if the amount has risen sharply or if an item is unclear.
7. Put your objections in writing and keep proof of mailing.

Common Mistakes

• Comparing only Kaltmiete and ignoring Warmmiete.
• Consider Nebenkosten as the final price, even though it is usually an advance payment.
• Failing to verify which expenses are permitted under the lease agreement and the Betriebskostenverordnung.
• Missing the deadline for objections to the Abrechnung.
• Signing separate contracts for electricity or internet while assuming that these costs are already included in the Warmmiete.
• Ignoring sharp increases in heating and water costs, even though these items are often the source of large Nachzahlung.

It’s best to think of utility payments in Germany as a system of advance payments and an annual reconciliation. Before signing a lease, look not only at the attractive Kaltmiete but also at the amount of Nebenkosten, the type of heating, the rules for allocating costs, and past Abrechnungen—if the landlord is willing to show them.