Permitted and Non-Permitted Service Charges

Not all costs may be passed on to tenants as service charges. Permitted items include cleaning, lift maintenance, insurance of common areas, and garden maintenance. According to the law (Article 7:232 BW), these must be reasonable and actually incurred. Non-permitted costs include, among others: replacement costs of major repairs (such as a new central heating system), costs of the dwelling itself (not common parts), profit margins, and costs for unused facilities. The Supreme Court ruled that landlords may not pass on costs that they bear themselves. Check your tenancy agreement for an exact description. In case of doubt: demand specification with invoices. Excessive costs may lead to repayment. In practice, we often see discussions about 'reserves' for future maintenance; these are only permitted if contractually agreed. Tenants' associations advise an annual check. In apartment complexes, VvE decisions count, but only the actual costs. Be alert to double calculation of advances. This way, you prevent unnecessary expenses and maintain fair play in the tenancy relationship. (202 words)