The results provided by this calculator are for information purposes only and do not constitute legal or financial advice.
Each month the tenant pays advance payments on service charges, based on an estimate. At least once a year the landlord must carry out the reconciliation of service charges: they compare the total advance payments already made with the actual recoverable charges effectively incurred (upkeep of common areas, water, collective heating, refuse collection tax, and so on).
Only so-called recoverable charges can be passed on to the tenant. Non-recoverable charges (major works, management fees, etc.) remain the owner's responsibility and must not be included in the calculation.
The reconciliation relies on two formulas:
Advance payments made = monthly advance × number of months paid
Reconciliation balance = chargeable actual recoverable charges − advance payments made
If the tenant occupies the property for only part of the year, the recoverable charges are prorated: chargeable charges = recoverable charges × days of occupancy / 365. A share can also apply when the actual amount covers the whole building.
A positive balance means the tenant owes a top-up; a negative balance triggers a refund of the overpayment.
A tenant pays an advance of 80 € per month for 12 months, that is:
80 × 12 = 960 € of advance payments made
The actual recoverable charges chargeable to the tenant come to 1,100 € for the year. The balance is therefore:
1,100 − 960 = 140 €
As the balance is positive, the tenant owes a top-up of 140 €. Had the actual charges reached only 900 €, the balance would have been −60 € and the landlord would have had to refund 60 € to the tenant.
