No explanation of operating costs required
> September 2016
If a residential rental agreement stipulates that the tenant has to pay “the operating costs”, this represents a legally effective operating costs agreement. According to a recent decision of the Federal Supreme Court (VIII ZR 137/15), it is not necessary to provide a list of the operating costs or include a clear reference to legal regulations in order to transfer the operating costs to the tenant.
Background:A standard residential lease stipulated that the tenant had to pay monthly advance payments of EUR 100.00 towards the operating costs. The agreement also included a reference to the most recent version of Appendix 3 to Section 27(1) of the Second Cost Calculation Act (Zweite Berechnungsordnung).
Decision:
The Federal Court of Justice decided that the provision in the tenancy agreement is legally valid. It noted that the requirement for transparency does not require references to legal provisions or the enclosure of a list of costs. It stated that “operating costs” was a well-known term which did not require explanation. It is a term which is sufficiently clear and easy to understand for the average tenant.