All About Service Charges: How to Avoid Overpaying

When renting a property, extra costs for services such as utilities, internet, or furnishing, known as service charges, often accompany the base rent. The distinction between base rent and service charges in the contract is fundamental. An all-inclusive rent, or an all-in rent, offers unexpected advantages for the tenant due to legal restrictions on such agreements. Discover the world of service charges and how Bumarang can assist you in obtaining a fair rental price.

The Principle of Service Charges

Service charges operate on the basis of advances, intended to cover the actual costs of provided services. At the end of the year, the landlord is required to provide a breakdown of the actual costs versus the advances paid by the tenant.

The Issue of Missing Settlements

The lack of these annual settlements is a common issue, potentially disadvantaging tenants. Landlords often opt for higher advances to ensure coverage of costs, but this can lead to tenants unknowingly overpaying.

Steps to a Correct Settlement

Landlords have up to six months after the calendar year has ended to provide a settlement. If missing, the tenant can request the landlord to still come up with a settlement. If it continues to be absent, the Rent Committee can be called upon for an official determination of the service charges.

Which Service Charges Are Legitimate?

Not all costs charged by the landlord are always legitimate; only costs explicitly agreed upon in the rental contract may be passed on. Unlisted services should not be included in the service charges.

Bumarang as Your Partner

Are you faced with high service charges without a clear settlement, or do you suspect you’re overpaying? Bumarang can assist you in the process of gaining clarity about your service charges. We guide you in submitting a request to the Rent Committee and ensure you don’t pay more than necessary. If you have overpaid, we help you get the difference back.

By getting a handle on service charges, you can prevent overpaying as a tenant. Knowing your rights and taking action when necessary can lead to significant savings. Bumarang is ready to support you at every step, from analyzing your contract to reclaiming unjustly paid costs.

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