Tenant Service Billing 2026: a complete step-by-step guide

How to correctly compile a service bill according to Act 67/2013 Coll. Deadlines, invoicing methods, model, mandatory requirements. A practical guide for landlords and SVJ.

A statutory penalty may apply for late or incomplete service settlement, but its conditions, amount, cap and affected duty must be checked under the current Czech Services Act; do not rely on a fixed daily amount or an automatic calculation.

What does Act 67/2013 Coll. - basic framework

Act No. 67/2013 Coll. on services connected with the use of an apartment is the main regulation governing the billing of advances for rental and cooperative apartments. Together with Decree No. 269/2015 Coll. on the settlement of heating and hot water costs defines how deposits are collected, what they apply to and how they are settled against actual costs. It concerns all landlords - natural persons, legal entities, SVJ and housing cooperatives. For the purposes of the law, "landlord" also means the SVJ that charges unit owners.

Key rule: deposits are not part of the rent. Rent is a fixed amount for the use of the apartment, deposits are prepayments for services, which you must bill at the end of the year with the actual costs. This distinction has an impact on accounting, taxes and possible disputes - the advance payment is a claim until it is billed. If you agree on a flat rate, the billing will not take place - but you will lose the right to a surcharge if the services become more expensive.

Which services are billed - an exhaustive list

§ 3 of the law defines the services connected with the use of the apartment. It is a broad range - the important thing is that the bill only covers the services for which you actually collected deposits. If the tenant pays them directly to the supplier (typically electricity in the apartment), it is not included in the bill.

Heat supply (heating) - by far the largest item, often 40-60% of the entire bill.
Domestic hot water supply (DHW) - includes water and energy for heating.
Cold water supply and sewage - water, sewage, possibly rainwater.
Elevator operation - electricity, inspection, service, oil change.
Lighting of common areas - corridors, cellars, carriage rooms, garage parking.
Cleaning of common areas - regular cleaning of corridors, staircases, elevators, window washing.
Removal of municipal waste - if the house as a whole pays (typically at SVJ).
Operation and cleaning of chimneys - regular inspections according to the decree 34/2016 Sb.
Operation of STA / cable TV - shared antenna or internet, if agreed.
Reception, security, camera system - for more luxurious houses.
Operation of sewage treatment plant - for family houses with their own sewage treatment plant.
Home insurance, property management - if SVJ budgets for units.

Determining advances: how much and according what

The amount of advance payments is determined by the lessor based on a reasonable estimate of consumption. Ideally, you start from last year's bill - if the tenant used the apartment for the whole year, you simply divide the annual costs over 12 months. For a new apartment, you rely on the average consumption of similar units in the building or on SVJ data.

Principle: deposits should correspond as closely as possible to actual consumption. If you deliberately undercut the advances to make the contract look attractive, you risk that the tenant suddenly pays 15-20 thousand at the end of the year - and either terminates the contract or asks for a repayment schedule, which you do not have to agree to.

Overvalued advances are not a substitute for accurate estimates. The resulting balance is settled under the Services Act, generally within four months after delivery of the bill, subject to the applicable rule. From a cash flow point of view, however, you are holding other people's money and this can cause a strained relationship.

When to increase advances: normally once a year after billing, if the actual costs have exceeded the advances by more than 20%. Especially in the case of significant energy price increases (e.g. in 2022). You must notify the change in writing with a justification (Section 4, paragraph 4 of the Act) - without a justification, the increase is invalid.

Practical tip: include in the lease agreement the provision "The landlord is entitled to unilaterally adjust the amount of advances based on the actual consumption of the previous settlement period or a proven increase in the prices of services." Without this arrangement, you must have the tenant's express consent for each change.

Billing methods - which one to use where

The key decision is which key you use to divide the total costs between the individual apartments. Act and Decree 269/2015 Coll. they accept several methods and each is suitable for a different type of service.

Floor area is one possible allocation key. For heat, the basic component and area calculation must follow the current decree and the building's approved method; do not assume a fixed 30-50% share. For common areas, lifts and cleaning, use the applicable statutory or agreed key.

Heat indicators or meters can form part of the consumption component where the current decree and building method require them. The component percentages and any adjustment limits depend on the current decree, building energy performance and the approved calculation; do not use a universal 50-70% or ±20% rule.

Water consumption meters (water meters) - if the apartment has its own water meter, the billing is based on the measured consumption. If there is no water meter or it is not working, the average consumption of the house per person or per housing unit is used.

Person-month - used for lighting, cleaning, elevator in some houses, shared hot water without meters. It is based on the number of people in the apartment and the number of months they occupied the apartment. The tenant is obliged to notify the change in the number of persons - if he does not notify, the procedure is based on the last known state.

Number of apartment units - fixed division between all apartments in equal parts. Suitable for services that serve everyone equally regardless of the size of the apartment (e.g. STA, reception).

Current heating rules: Apply the current version of Decree No. 269/2015 Coll. and the building's approved allocation method. Depending on the building, the basic component may be 40%, 50% or 60%, with possible adjustments; hot-water allocation is separate. Do not treat 30/70 as a universal key.

Deadlines: when you must deliver the bill

4-month deadline: the bill must be delivered to the tenant no later than 4 months after the end of the billing period. The billing period is usually a calendar year - if it ends on 12/31, the bill must be in the tenant's hands by 4/30 of the following year. If you have a different settlement period in the contract (e.g. from 1/7 to 30/6), the deadline is shifted accordingly.

Financial settlement generally follows within four months after delivery of the bill, subject to the current Services Act and any valid agreement. Calculate the actual due date from the delivery date rather than treating an example date as universal.

Attention to delivery: a bill that is physically handed over, delivered by post (even an uncollected registered letter is considered delivered after 10 days), or delivered electronically only if this is explicitly stated in the contract is considered delivered agreed and the tenant has a working mailbox or has agreed to e-mail. Merely "I mailed it" is not delivery.

In the case of a terminated lease: the law does not allow billing for only a proportional part of the year immediately. The bill is also made for the departed tenant within the annual billing period - i.e. if the lease ended in June, he will receive the bill only in April of the following year for the period up to June. If it is a practical problem (e.g. the tenant is going abroad), you can agree on an extraordinary invoice after the end of the lease, but both parties must accept it. exhaustively lists what the bill must contain. If only one of the items is missing or indeterminate, the bill is formally defective and the tenant is not obliged to pay the overpayment (and you, in turn, have the obligation to return the overpayment within 4 months).

Designation of the supplier of individual services (name, ID number).
Designation of the customer (tenant) and the apartment to which the bill relates.
Billing period - from–to (typically 1. 1. – 31. 12. of the given year).
Total costs for individual services in Kč (e.g. heat: Kč 380,000; water: Kč 120,000).
Amount consumed in the units in which the service is measured (GJ, m³, kWh).
Unit prices - how much does 1 GJ, 1 m³ cost.
Used method (key) billing - "according to floor area", "according to RTN", "according to water meters".
Share of the tenant's apartment in costs - calculation: how many m², how many parts of RTN, how many m³ of water.
Amount of tenant's advances for the period in Kč - sum of all 12 monthly advances.
Difference - underpayment or overpayment - expressed separately for each service.
Term and the method of returning the overpayment / payment of the underpayment.
Instruction on the tenant's right to inspect the documents (§ 8).

Water and sewage: special rules

Water is billed according to water meters, if they are installed and functional in the apartment. Sewage is usually billed in the same way as water (by law, sewage = 100% of water), or according to a separate key for houses with their own sewage treatment plant.

If the apartment does not have a functioning water meter, apply the fallback or reference-consumption method required by the current rules and building arrangement; do not hard-code a 36 m³/person/year figure.

Functionality of the water meter: the tenant is obliged to allow the landlord to read and check the water meter. If a reading is unavailable, apply the current statutory fallback method and document the reason; do not substitute an unsupported multiplier.

Verification periods depend on the instrument category and current UNMZ rules; for meters used to charge end users, check the applicable current period rather than assuming six years for cold water or four years for hot water. Compliance, fallback calculations and replacement-cost allocation depend on the instrument and applicable rules.

Rainwater - if the water company charges it (typically for houses with a large roof area), it is a separate item of the bill, it is calculated according to the floor area.

Heating and hot water: the most complicated part

Heat billing combines the basic and consumption components under the current Decree No. 269/2015 Coll., with any required corrections for extreme consumption. The percentages and limits depend on the current rule and building.

Fixed component (basic): divided among all apartments according to floor area. It covers the so-called distribution losses - the heat that the house consumes regardless of the behavior of a specific tenant (heating distribution lines, losses in the utility room).

Consumption component: divided according to RTN (radio-controlled heating costs) or IRTN (radio). Each radiator has an indicator that measures "parts" - a weighted product of the radiator's temperature and operating time. At the end of the year, the parts of all radiators in the apartment are added up, multiplied by "recalculation coefficients" (for different types of radiators and rooms), the result is the consumption share of the apartment.

Correction for extreme consumption: apply the current decree's formula and adjustment limits, which depend on the building and calculation method; do not use a universal ±20% threshold.

Hot water has a separate allocation method under the current rules and approved building calculation. Do not use a universal 30%/70% split; follow the current decree and the applicable meter or consumption method.

If the house does not have RTN, the entire heating is billed according to the floor area. This is simpler, but unfair - who heats, pays the same as who doesn't.

Practical example of calculation: House: 10 apartments, total area 800 m². Annual cost of heat: Kč 320,000. Fixed component 40%: 128,000 Kč ÷ 800 m² = 160 Kč/m². Consumption component 60%: 192,000 Kč ÷ 12,000 pieces = 16 Kč/piece. A 70 m² apartment with 1,200 units will pay: 70 × 160 + 1,200 × 16 = 11,200 + 19,200 = 30,400 Kč.

Complaints by the tenant: procedure and deadlines

After receiving the bill, the tenant has 30 days to submit written objections (§ 8 of the Act). In the same period, he has the right to inspect the documents - invoices from suppliers, reading logs, calculations. If you do not show him the documents, the deadline for objections is extended and you fall into default.

Form of objections: in writing, by registered letter or with proven delivery (e-mail with confirmation of receipt). Telephone objections are not valid.

You have 30 days to process objections. Either you accept them and issue a corrected bill, or you reject them with a reason. After the refusal, the tenant has the right to go to court (typically with a lawsuit to return the overpayment or to determine the invalidity of the bill).

What is a legitimate objection: lack of properness of the bill, inconsistency between the bill and the documents, use of the wrong method of settlement, calculation error, failure to include returned payments. What is not: subjective feeling that "it is expensive", reluctance to believe the measured consumption without concrete proof.

If the tenant advertises water or heat and you have the documents in order, the procedure is simple: document the reading protocols with the signature of the tenant (if he was at the reading) or with the signature of the company performing the reading (Ista, Techem, Brunata). These companies are authorized measuring points and their data is accepted by the court.

Sanctions, arrears and enforcement

A statutory penalty is generally not a tax-deductible expense. If a penalty is imposed for a late bill, its amount and tax treatment depend on the current law and circumstances; do not rely on a fixed Kč 18,000 example. You can: 1) ask him to pay with another reminder; 2) send a pre-suit summons; 3) file a lawsuit in court for payment. If the amount of the arrears is up to Kč 50,000, it goes to the district court, the court fee is 5% of the sued amount (min. Kč 1,000).

Three months of unpaid rent or service charges may evidence a particularly serious breach under § 2291 of the Czech Civil Code, but do not automatically terminate the tenancy. The required prior call to remedy the breach and the statutory route must be followed; a three-month notice under § 2288 is a separate route.

Prescription: the claim from the invoice is time-barred in 3 years according to § 619 NOZ. The period begins to run on the day when the arrears were due (4 months from receipt of the invoice). After the statute of limitations, the tenant does not have to pay even if the debt exists.

Common Mistakes to Avoid

Z long-term landlord advice shows that most billing disputes have one of seven reasons.

Billing without all 12 mandatory requirements - the tenant is right to complain, you have no right to arrears.
Billing period other than the calendar year without an explicit agreement in the contract - invalid, the calendar year will be used.
Using a fixed rent with "included services" without a clear agreement - the court will interpret it as a flat rate, you will lose the right to a bill.
Exclusion of credit notes and returned payments from suppliers - the tenant will pay more than the house actually consumed.
Using the wrong key (e.g. heat by people instead of by floor area/RTN) - the entire bill in this item is defective.
Late delivered bill without provable delivery - you cannot recover the arrears.
Ignoring objections - the tenant can sue you to determine invalidity billing, the court will confirm the tenant's right.

How to simplify and speed up billing

Professional property managers spend 5-10 hours on billing for a 20-unit apartment building. But most landlords manage 1-5 apartments and spend the same amount of time on billing due to manual data collection. There are tools that significantly shorten the process.

Collection of readings: if the apartment belongs to SVJ, you will receive an annual bill for your apartment from the administrator (approx. 200-400 Kč for processing). You just copy these data into the bill for the tenant. If you have your own RD, use authorized measuring companies (Ista, Techem) - for 800–1,500 Kč per year you will receive a complete statement with certification.

Software for landlords: the Grento.cz application automatically generates a PDF statement with all 12 mandatory details, calculates arrears/overpayments and records delivery. It saves 4-6 hours of work per apartment and eliminates formal errors.

Communication with the tenant: deliver the bill with an accompanying email, where you briefly explain the result. Example: "I am sending you the bill for the year 2025. We had a slightly colder winter this year, your heat consumption was 12% higher than last year. Please pay the balance of Kč 3,240 by 31 August 2026 to the account..." This 4-line message will reduce the number of inquiries by 80%.

Archiving: retain invoices, readings and calculations for the periods required by the applicable accounting, tax, limitation and data-protection rules; there is no universal three- or ten-year period for every document. Cloud storage with PDF documents will save you from searching for paper files if the tenant comes with a complaint after 2 years.

Free template: You can find an editable template of the service bill (DOCX and PDF) in the section /templates-contracts. In addition, the contract guide in the Grento.cz application contains pre-filled calculations for the most common houses.

Conclusion

> Czech-law scope and editorial note: Legal, tax, accounting, tenancy, service-charge, condominium, metrology, insurance and data-protection statements in this article refer to the Czech Republic and the rules effective for the relevant date. Figures and examples are illustrative, not legal or tax advice. Verify current rules with the relevant Czech authority or a qualified adviser.

> Tenancy-law clarification: Under the Czech Civil Code, three months of unpaid rent or service charges may be evidence of a particularly serious breach, but it does not automatically terminate the tenancy or evict the tenant. A landlord must use the correct statutory route, including a prior call to remedy the breach where § 2291 applies. A tenant challenging a landlord notice generally applies to a court within two months of delivery under § 2290; this is not an automatic suspensive objection.

> Service-accounting clarification: Under Czech Act No. 67/2013 Coll., distinguish delivery of the settlement within four months after the accounting period, financial settlement generally within four months after delivery, and the separate 30-day periods for supporting documents or objections under § 8. A statutory per-day penalty under § 13 is conditional; verify the current amount and cap rather than applying a universal figure.

> Metrology and heat clarification: Verification periods depend on the instrument type and current UNMZ rule. Heat allocation uses the current Czech decree and may use a 40%, 50% or 60% basic component according to building energy performance, with possible adjustments; hot-water allocation is separate. Do not treat a 30/70 or ±20% statement as universal.