Monday, 26 October 2026
Property managers in Germany are increasingly turning to artificial intelligence and simplified accounting procedures to address the administrative burden of calculating building operating expenses. However, the growing use of automated technology by both landlords and tenants is introducing new challenges, particularly as more residents use digital tools to question the accuracy of their annual charges.
The issue was discussed during an online industry meeting organised by RUECKERCONSULT on 26 October 2026, involving representatives from INDUSTRIA Immobilien, DVI Group and HIH Real Estate. Participants examined the difficulties associated with preparing annual service charge statements, identifying accounting discrepancies and responding to tenant complaints. They also considered whether changes to contractual arrangements and accounting practices could reduce the time and resources required to manage these processes.
One of the principal concerns identified was the reliability of property information held within management systems. Incorrect measurements, outdated tenant records and inaccurate allocation of expenses can result in financial discrepancies that are difficult to identify once annual calculations have been completed. Although established property management software can process substantial amounts of financial information automatically, its effectiveness depends on the accuracy of the underlying records.
Carolin Dose, Managing Director of Asset Management at HIH Real Estate, explained that errors can also create financial disadvantages for property owners when expenses that could legitimately be recovered from tenants are incorrectly assigned. To address this risk, the company requires its asset management department to review and approve annual operating expense statements before they are issued.
The difficulties become particularly pronounced when property management responsibilities are transferred between companies. According to Jürgen Hau, Managing Director of INDUSTRIA Immobilien, incoming managers frequently need to reconstruct property records, verify building measurements and establish the correct contractual arrangements before reliable accounting can begin. Commercial properties present additional complications because individual leases may contain different provisions governing which expenses can be charged to occupiers.
Artificial intelligence is beginning to reduce some of this administrative workload. DVI Group has introduced AI-supported processes to examine commercial lease agreements and their subsequent amendments, helping employees identify the contractual provisions relevant to operating expenses. Dirk Wichner, a member of the company’s management team, indicated that the technology has reduced the manual work involved in reviewing documentation. Nevertheless, transferring the information extracted by AI into existing property management platforms remains difficult because many systems lack suitable technical connections.
Technology is also changing how tenants respond to their annual statements. DVI Group estimates that approximately 12% of objections received across its residential portfolio during 2026 were prepared using artificial intelligence. The figure represents the company’s own assessment rather than an independently established industry-wide measurement. INDUSTRIA Immobilien has similarly observed an increase in complaints supported by automated tools. This development raises the possibility of landlords and tenants increasingly relying on software to produce, challenge and respond to financial calculations, potentially generating additional correspondence without necessarily resolving underlying disagreements.
Beyond technological improvements, the participants considered whether simpler contractual structures could address some of the causes of disputes. One proposal involves agreeing fixed amounts for selected building expenses that do not depend directly on individual consumption. Such arrangements could provide tenants with greater certainty over their financial commitments while reducing the number of separate calculations required from property managers. Their application would nevertheless depend on the relevant legal framework and the terms agreed between the parties.
INDUSTRIA Immobilien already applies certain fixed-charge arrangements within parts of its student accommodation portfolio and selected other properties. DVI Group has adopted this approach less extensively, reflecting concerns that property owners could face additional financial exposure when maintenance, services or other operating expenses increase beyond the agreed amounts. Consequently, simplified charging arrangements may offer administrative advantages without necessarily being appropriate for every property or expense category.
The discussion also highlighted the importance of improving accounting procedures before introducing additional automation. Establishing consistent methods for recording expenditure, maintaining property information and interpreting lease provisions could reduce errors at their source. Industry participants suggested that greater consistency across commercial property agreements would also make it easier to apply digital systems and reduce the need for individual manual assessments.
For Germany’s property investment and management sector, the growing complexity of operating expense administration presents both a financial challenge and an opportunity to improve efficiency. Artificial intelligence may accelerate document analysis and identify inconsistencies, but its effectiveness will remain dependent on reliable information, compatible software and clearly defined contractual obligations. As landlords and tenants gain access to increasingly sophisticated digital tools, the ability to prevent accounting disputes may become more valuable than the ability to process them quickly.
