Findings from the tenth instalment of the webinar series ‘Asset and Property Management in Practice’
Operating cost statements are among the most labour-intensive tasks in property management. Year after year, large volumes of data and invoices must be processed, cost items allocated and statements prepared. The high number of disputes also ties up considerable staff resources. Incorrect statements can trigger protracted disputes and cause lasting damage to the relationship of trust between tenants and landlords. Jürgen Hau, Managing Director of INDUSTRIA Immobilien, Dirk Wichner, a member of the Executive Board of the DVI Group, and Carolin Dose, Managing Director of Asset Management at HIH Real Estate, discussed how to reduce the workload and improve the quality of statements during the tenth online panel in the ‘Asset and Property Management in Practice’ series organised by RUECKERCONSULT.
Sources of error often lie in the master data
The panellists identified the inadequate quality of the underlying data as a key cause of incorrect statements. Whilst common ERP programmes such as SAP or iX-Haus can already generate operating cost statements largely automatically, this requires the information to be recorded completely and correctly.
“It all starts with the quality of the master data,” explains Carolin Dose. “Often, floor area details or billing units are not recorded correctly, cost items are posted incorrectly, or allocation keys are assigned incorrectly. This can also lead to owners bearing costs that could actually be passed on to tenants. HIH Real Estate therefore has its service charge statements checked and approved by the asset management team.”
In Jürgen Hau’s experience, taking on new management mandates is particularly prone to errors. “In such cases, all documents, floor area details and allocation keys must first be recorded and transferred into the systems. Another factor is the complexity of commercial tenancy agreements, with their individual arrangements for the apportionment of specific cost categories. Different allocation keys and numerous contract amendments make correct implementation difficult. Furthermore, it is not always legally possible to draw a clear distinction between apportionable and non-apportionable costs,” explains Jürgen Hau.
AI significantly streamlines certain aspects of cost allocation
Experts see great potential for improving efficiency through the use of artificial intelligence. Whilst the preparation of operating cost statements is already largely software-supported, AI can provide particular assistance with data verification, the analysis of complex tenancy agreements and the handling of disputes.
The DVI Group uses AI to analyse extensive commercial tenancy agreements, including their addenda, with regard to operating cost provisions. Dirk Wichner says: “This significantly reduces the effort involved in contract review. However, one challenge remains: automatically transferring the information obtained into existing ERP systems. Suitable interfaces have often been lacking in this regard. I expect this development to make significant progress over the next twelve months.”
The experts agreed that AI alone does not offer a complete solution. At the same time, a new dynamic is emerging: automatically generated service charge statements are followed by AI-generated objections, which in turn are answered automatically. According to Dirk Wichner, the DVI Group classifies twelve per cent of the objections received in 2026 within its residential portfolio as AI-generated, and the trend is rising. INDUSTRIA also confirms this development, citing a growing number of AI-supported objections.
Standardisation and flat-rate allocations can reduce the potential for disputes
The experts cited greater standardisation as a key approach to preventing errors. In the commercial sector in particular, the multitude of individual contract structures complicates the automation of service charge statements. Uniform rules on the apportionability of costs and standardised processes – which the property sector itself should develop – could significantly reduce complexity. There is also a need for action within companies. Costs must be correctly allocated at the point of recording, rather than correcting erroneous or incomplete entries only during the annual settlement.
Carolin Dose sees another potential solution in flat-rate contributions for non-consumption-based operating costs. Instead of settling all cost items individually each year, landlords and tenants could – where legally permissible – agree on fixed flat rates for certain types of costs. For tenants, this would increase certainty in cost calculations. In return, landlords could reduce the administrative burden and the risk of disputes. Whilst INDUSTRIA already uses flat-rate models for operating costs to some extent in student accommodation and in selected properties, they are as yet rarely used in the DVI Group’s portfolio. Wichner highlighted the risks of rising operating costs, over which landlords have only limited control. The panellists agreed that standardised processes and simplified billing models could, in the long term, not only ease the administrative burden but also significantly reduce the potential for conflict between tenants and landlords.
