Germany's Operating Costs Ordinance 2026: CO₂ Cost Split and Consumption Reporting Explained

Germany's Operating Costs Ordinance (Betriebskostenverordnung, BetrKV) still determines exhaustively which cost types landlords can pass on to tenants in 2026. The real changes sit in two other laws: how CO₂ costs split between landlord and tenant, and the duty to report consumption during the year. Both points decide whether your 2026 statement actually holds up.

For portfolio holders with several hundred residential units, simply knowing the 17 cost types is no longer enough. Incorrect CO₂ figures, missed deadlines on consumption reporting, or an incomplete statement can cost real money across a whole portfolio and keep tenant inquiries coming in nonstop.

Which 17 Cost Types Are Recoverable Under the Operating Costs Ordinance in 2026?

Under Section 2 BetrKV, 17 cost types remain recoverable in 2026, unchanged, provided the lease specifically agrees to the pass-through. In practice, it pays to look at each item individually, because almost every one raises its own questions about proof and scope.

Getting item 17 BetrKV right: The Federal Court of Justice (Bundesgerichtshof, BGH) requires a specific listing in the lease for "other operating costs"; a blanket reference to the category is not enough. Applying that standard, the BGH upheld the pass-through of waste-sorting inspection and smoke detector maintenance costs in 2022, because both items were explicitly named in the contract.

Which Costs Can't Be Passed on to Tenants Under the BetrKV in 2026?

Section 1 BetrKV expressly excludes administrative costs, maintenance and repair costs, and one-off costs from the pass-through. That exact boundary is where most scoping disputes arise in a property manager's day-to-day work.

Administrative costs cover property management staff and bookkeeping, and legal advice related to the tenancy falls under this heading too. Maintenance and repair concern fixing or replacing defective components, such as swapping out an elevator motor or resurfacing a roof. Annual elevator servicing stays recoverable because it keeps the system running rather than fixing a defect. In many cost statement audits, that exact question, whether something counts as servicing or already as repair, decides what ultimately stays recoverable.

How Does the CO2KostAufG Split CO₂ Costs Between Landlord and Tenant in 2026?

Since 2023, the CO2KostAufG has split the CO₂ costs from residential heating bills between landlord and tenant using a ten-tier model, graded by the building's CO₂ output per square meter and year. In particularly inefficient buildings, the landlord carries up to 95 percent of the CO₂ costs; for non-residential buildings, a flat fifty-fifty split still applies on a transitional basis in 2026, because the tiered model announced for 2025 for that building class hasn't arrived yet.

The national CO₂ price itself works differently in 2026: an auction corridor of 55 to 65 euros per ton now applies for the first time instead of a fixed price, with the certificate price set at 60 euros for the year. Higher CO₂ costs flow straight through into the amount that gets divided up under the tiered model. That makes it all the more important to actually measure building consumption rather than estimate it. We've laid out why measured values carry so much more weight than estimates in our piece on CO₂ monitoring in buildings.

The first evaluation report on the CO2KostAufG, presented by the Federal Ministry for Economic Affairs in April 2026, is clear on one point: the landlord's share stays well below the targeted fifty-fifty split on market average, and the ministry recommends adjusting the tiered model, among other things by using figures that aren't weather-adjusted.

Two views on the same numbers: The German Tenants' Association (Deutscher Mieterbund) points to its own analysis of over 100,000 buildings, putting the tenant share of CO₂ costs at 73 percent on average. The GdW, in statements on the Building Modernisation Act, instead warns of cost risks for landlords from hard-to-forecast blended-fuel prices. Both assessments are association positions, not neutral surveys.

The Building Modernisation Act (Gebäudemodernisierungsgesetz, GModG), passed in July 2026 and in force since July 29, 2026, has already amended the CO2KostAufG. For gas, oil, or LPG heating systems newly installed after July 29, 2026, a flat fifty-fifty split will apply from January 1, 2028, including gas network fees, which will then have to be shown separately for the first time. Existing systems keep grandfathered status and stay on the current tiered model. Landlords who omit the CO₂ cost split from the heating statement, or get it wrong, must bear the entire CO₂ cost alone; a correction is possible within the twelve-month objection period under Section 556(3) of the German Civil Code (BGB).

What Deadline Applies in 2026 for Interim Consumption Reporting Under the Heating Costs Ordinance?

Under Section 6a HeizkostenV, landlords have had to provide tenants with a monthly interim consumption information (uVI) since December 2022, once remotely readable meters are installed. By December 31, 2026, every existing meter that isn't yet remotely readable must be retrofitted or replaced, and from January 1, 2027, the requirement applies practically everywhere.

A VDIV survey of more than 300 property management firms found that, roughly 23 months before the deadline, 58 percent of owners' associations and 61 percent of rental properties already had remotely readable devices installed. Our piece on heating monitoring in multi-family buildings describes how to put that ongoing operation to practical use, making this exact data visible well before the annual statement.

The right to reduce payments when uVI is missing: If the monthly consumption information is missing despite the technology being in place, tenants may reduce their heating costs by a flat 3 percent. If billing isn't consumption-based at all, the reduction can reach up to 15 percent, and both reduction rights can be combined.

Which Mistakes Cause the Most Disputes Over the 2026 Operating Cost Statement?

The most common disputes revolve around formal errors and missed deadlines, less often around the wrong choice of cost type. The landlord must deliver the statement no later than twelve months after the end of the billing period; after that, any additional claim is barred, while the tenant's right to a credit balance stays intact. What counts is exclusively the provable delivery to the tenant.

For formal validity, the Federal Court of Justice requires four minimum details in every statement:

Another source of errors emerged when the so-called cable fee privilege ended on July 1, 2024: cable connection fees can no longer be passed on as a flat charge, which the Tenants' Association says cut costs on this item by around 42 percent. The operating cost index published by the German Tenants' Association shows the overall scale of these costs: for the 2024 billing year, operating costs across Germany averaged 2.67 euros per square meter per month, up more than 6 percent on the previous year, with heating and hot water as the largest single item.

How Do Digital Consumption Data Keep Portfolio-Wide Billing Legally Sound?

Digital consumption and operating data give you a firmer grip on billing. A verified data foundation covers the CO2KostAufG tier assignment and the monthly uVI obligation, and it also supports the allocation key the BGH requires. For a portfolio with several hundred buildings, that's the precondition for meeting deadlines and formal requirements across many properties at once.

This is exactly what the KUGU Messdienstplattform is built for: it brings meter, consumption, and billing data from the existing portfolio together in one system, so the monthly consumption information, the CO₂ tier assignment, and the annual statement all rest on the same verified figures. We've broken down which operating data actually matter for steering and reporting in our piece on ESG data in real estate.

BetrKV 2026: Compliance Shifts From the Cost List to the Data Behind It

The BetrKV's cost list itself barely changes in 2026. The real risk today sits in the data behind it, specifically in how accurate that data actually is. A misassigned CO₂ tier, a missing monthly consumption information, or an untraceable allocation key all lead to reductions or a total loss of the claim, regardless of which cost type is affected.

In practice, that means checking, still in 2026, which properties in your portfolio already have remotely readable meters, how the CO₂ tier assignment gets documented, and whether all four BGH-mandated details appear consistently in every statement. Clearing up these three points before the next billing season noticeably cuts down on objections and lost additional claims.

Frequently Asked Questions About the Operating Costs Ordinance 2026

Can Property Management Administrative Costs Be Passed on Through the Operating Cost Statement?

No, administrative costs are expressly excluded from the pass-through under Section 1 BetrKV. That applies regardless of whether the management is organized in-house or outsourced. Landlords generally bear these costs themselves.

How Long Does the Landlord Have to Deliver the Operating Cost Statement After the Billing Year Ends?

Twelve months after the billing period ends; after that, any additional claim is barred. What counts is the provable delivery to the tenant, not simply the date it was sent. Tenants also have to raise objections within the same period, counted from delivery.

What Happens if the CO₂ Cost Split Is Missing From the Heating Cost Statement?

Then the landlord bears the entire CO₂ cost alone, and the tenant pays nothing toward it. This legal consequence applies whether the split is missing or simply wrong. A correction is only possible within the twelve-month objection period.

Can Tenants Reduce Heating Costs if No Monthly Consumption Information Arrives?

Yes, if the uVI is missing despite remotely readable technology being in place, tenants may reduce their heating costs by a flat 3 percent. If consumption-based billing is missing entirely, the reduction can reach up to 15 percent. Both reduction rights can be combined.

Does the Cable Connection Fee Still Count as a Recoverable Operating Cost in 2026?

No. Since July 1, 2024, cable connection fees can no longer be passed through as a flat charge in the operating cost statement, and nothing changes on that front in 2026 either. This affects the communal antenna and broadband network item under Section 2 No. 15 BetrKV.