You have found an office or commercial space at an attractive rental price — but then come the service charges. For many tenants, service charges are an opaque cost item that can significantly drive up total occupancy costs. In this article, we explain exactly what service charges are, what amounts you can expect, and how to avoid overpaying.
What are service charges exactly?
Service charges are the costs that a landlord passes on to tenants for services and facilities relating to the building and communal areas. They are charged separately from the base rent and cover the maintenance, management, and operation of the property.
In practice, as a tenant you pay two amounts: the base rent (the right to use the space) and the service charges (for the facilities and maintenance). With some landlords, you may encounter a third component: promotional costs, especially for retail spaces in shopping centres.
It is important to understand that service charges are not fixed costs. They are determined annually based on the landlord's actual expenditures, and can therefore vary from year to year. This makes it all the more important to check the annual settlement carefully.
The components of service charges
Service charges consist of various components. Not every building has the same cost structure — a modern office building with reception and fitness facilities logically has higher service charges than a simple commercial unit. The most common components are:
Building maintenance
- Maintenance of lifts and escalators
- Maintenance of heating, ventilation, and air conditioning systems (HVAC)
- Maintenance of the roof, facade, and communal structures
- Painting and repairs to communal areas
Cleaning and hygiene
- Cleaning of communal areas (entrance, corridors, lifts, toilets)
- Window cleaning for communal facades
- Pest control
- Waste processing and container costs
Energy and utilities
- Heating and cooling of communal areas
- Lighting of communal areas, car park, and outdoor spaces
- Water consumption in communal facilities
Note: the energy consumption of your own rented space usually does not fall under service charges but is settled separately via your own meter. In some older buildings without individual meters, however, energy consumption is distributed among all tenants based on m² — which can be disadvantageous if you are economical.
Security and reception
- Reception services and concierge desk
- CCTV and alarm systems
- Access control systems
- 24-hour security service (at larger complexes)
Management and administration
- Property management fee (typically 3–5% of total service charges)
- Administration costs and bookkeeping
- Building insurance premiums
Other facilities
- Maintenance of landscaping and outdoor areas
- Bicycle storage and bicycle maintenance
- Communal meeting rooms or lounges
- Electric vehicle charging points
Market-rate amounts in 2026
Service charges vary considerably by property type and level of facilities. In 2026, the following indicative amounts apply:
- Basic commercial unit / business park: EUR 15 – 30 per m² per year
- Standard office building: EUR 35 – 55 per m² per year
- High-quality office building with extensive facilities: EUR 55 – 85 per m² per year
- Premium office with full-service concept: EUR 85 – 120+ per m² per year
For a 300 m² office in a standard office building, this translates to approximately EUR 10,500 – 16,500 per year in service charges. That is a significant cost on top of the rent.
Tip: always compare the service charges of multiple properties when looking for office space. A property with a lower rent but high service charges can end up being more expensive than an alternative with higher rent but low service charges. Curious about the full rental prices per m²? See our article on the cost of office space per m² in 2026.
Service charges of EUR 50 per m² per year add EUR 25,000 per year to the occupancy costs of a 500 m² office — that is an amount you need to budget for consciously.
Advance payments and annual settlement
In practice, you pay service charges as a monthly advance. This advance is based on an estimate of the expected costs for that year. After the end of the calendar year (or financial year), the landlord prepares an annual settlement based on the actual costs.
The annual settlement can go two ways:
- Additional payment: the actual costs were higher than the advance. You receive an invoice for the difference.
- Refund: the actual costs were lower than the advance. You receive the difference back.
In practice, we see that landlords deliberately set the advance slightly higher than expected costs — this prevents unpleasant surprises at settlement time. But sometimes the advance is structurally set too high, meaning you as a tenant are unnecessarily tying up liquid funds.
Important points regarding the annual settlement:
- The landlord is obliged to prepare the annual settlement within a reasonable period — typically within 6–12 months after the end of the service charge year.
- You have the right to request access to the underlying invoices and contracts.
- Check that the allocation key has been correctly applied — are the costs divided based on m², based on number of tenants, or in another way?
- Watch for costs that do not really belong there, such as major maintenance or replacement of installations — these are landlord expenses, not service charges.
Checking and disputing service charges
As a tenant, you have the right to check and dispute service charges. In practice, too few tenants do this, while it can yield significant savings.
Steps to check service charges:
- Request the itemised annual settlement: you are entitled to a detailed overview of all cost items.
- Compare with the previous year: large increases (more than 10%) in specific cost items require an explanation.
- Request access to the underlying invoices: the landlord must make these available when you request them.
- Check the allocation key: is the share you pay proportional to your rented floor area?
- Check whether costs are included that do not belong in service charges: think of major maintenance, vacancy costs, or property improvements.
If you find irregularities, present these to the landlord in writing with a request for clarification. If no satisfactory response is forthcoming, you can engage an expert or — if you have a ROZ lease — follow the dispute resolution procedure included in the contract.
Negotiating service charges
Many tenants focus exclusively on the base rent during negotiations, but service charges also offer room for negotiation.
Tips for negotiating service charges:
- Ask for a cap (maximum): some tenants negotiate a maximum amount for service charges, protecting them against unexpected increases.
- Request exclusion of specific items: if you do not use certain facilities (such as a fitness room or meeting facilities), you can ask whether you need to contribute to them.
- Negotiate a fixed service charge contribution: in some cases, you can agree a fixed amount per m² instead of variable service charges based on actual costs. This gives you budget certainty.
- Request interim reports: instead of only an annual settlement, you can ask for quarterly or semi-annual reports.
Common mistakes with service charges
Finally, the most common mistakes tenants make regarding service charges:
- Focusing only on the base rent: a property with EUR 150/m² rent and EUR 70/m² service charges is more expensive than one with EUR 180/m² rent and EUR 30/m² service charges.
- Not checking the annual settlement: research shows that approximately 60% of annual settlements contain errors or ambiguities. Checking always pays off.
- Not requesting access to underlying documents: you are entitled to this — make use of it.
- Forgetting that service charges can increase annually: include a 3–5% annual increase in your budgeting.
- Not negotiating: service charges are negotiable, especially with longer leases or in a market with sufficient supply.
Want to know even more about the costs associated with commercial property? Read our comprehensive article on the hidden costs of renting commercial property, or discover how you can negotiate a rent-free period to make your first year more affordable.
