Reconciling service charges with your tenant in France
Updated 8 October 2026 · By the Loyski team
Every month, your tenant pays a charge advance. Once a year, you compare those advances with the recoverable charges actually paid, then ask for the balance or refund the overpayment. The step-by-step method under French law, with an example.
The principle
Service charges (charges locatives, or "recoverable" charges) are costs the landlord pays first and can recover from the tenant: water, upkeep of common areas, refuse collection tax… The lease usually sets a monthly advance (provision pour charges), paid with the rent. The reconciliation compares the total of those advances with the actual amount.
Balance = actual recoverable charges − advances paid. Positive: the tenant owes the difference. Negative: you refund the difference.
The 5 steps
- Gather the actual amounts for the year: the building's yearly accounts (once approved at the general meeting), your taxe foncière notice for the refuse collection tax (TEOM), and any water or upkeep bills you pay directly.
- Keep only the recoverable charges, listed in decree no. 87-713 of 26 August 1987 (the full list). On the managing agent's statement, it's usually the "charges récupérables" or "locatives" column.
- Work out the advances actually paid over the same period, prorated if the tenant moved in or out during the year.
- Send the statement to the tenant one month before the reconciliation, by type of charge, with, in a block of flats, how costs are split between occupants (ownership shares, for example).
- Collect or refund the balance, usually with the next rent, and adjust the monthly advance if the gap is large.
For six months after sending the statement, the supporting documents must be available to the tenant, including electronically.
Worked example
Julie pays a €90 advance a month, i.e. €1,080 over the year. The building's accounts for the year are approved in April. Actual recoverable charges:
| Hot and cold water | €346.20 |
| Upkeep of common areas and lift (recoverable part) | €512.80 |
| Refuse collection tax | €198.00 |
| Total actual charges | €1,057.00 |
| Advances paid | €1,080.00 |
| Overpayment to refund to Julie | €23.00 |
The landlord sends the statement in early May and deducts the €23 from June's rent. They can keep the advance at €90, very close to the actual amount.
Do your own calculation with the reconciliation calculator.
Common mistakes
- Passing on the whole managing agent's column: managing agent fees, works, building insurance or the works fund aren't recoverable.
- Forgetting the refuse collection tax: it's on the taxe foncière notice, not on the building statement.
- Letting years go by: after 3 years, charges are time-barred, and a large late claim creates tension.
- Sending just a total: the statement must break the charges down by type.
Rent tracked, receipts sent, IRL rent increases and charges at the right time. Free for one property.
Frequently asked questions
Is the service charge reconciliation compulsory?
Yes, when the tenant pays monthly charge advances (provisions): they must be reconciled at least once a year (article 23 of the law of 6 July 1989). Fixed charges (forfait) are never reconciled.
What if the tenant has left?
The reconciliation is still due for their period of occupation. In a building with shared ownership, the landlord can keep up to 20% of the security deposit until the accounts are closed, then settle within the month after they're approved.
How long can I claim forgotten charges for?
Three years (article 7-1 of the 1989 law). But if the reconciliation wasn't done before the end of the calendar year following the year of the charges, the tenant can ask to pay the balance in twelve monthly instalments.
Can the tenant dispute the statement?
Yes. They can ask to see the supporting documents for six months and dispute charges that aren't recoverable. If you disagree, the departmental conciliation committee can be consulted free of charge.
This guide gives general information about French law, accurate on its publication date. It doesn't replace personal legal or tax advice: if in doubt, the ADIL of the département where the property is located advises landlords and tenants for free.