Lawyer for advance payment operating costs

Advance payments are most common today in tenancy law – as prepayments for expected operating costs such as caretaker services, cleaning, electricity, waste disposal, gardening, winter services, and much more. After the agreed advance payment period has expired, the actual costs are settled, with any credit refunded or additional payment requested. Unfortunately, it is not unusual today that service charges – and therefore the advance payments due – have become a kind of "second rent", as a large portion of the statements do not comply with legal requirements or are simply incorrect. Even if the monthly amounts seem small, over the course of a year or the entire rental period these can add up to considerable sums that tenants may not have been obliged to pay at all.

Advance payments are also found in many other areas of everyday life – namely as general prepayments. For example, almost everyone is familiar with advance payments for gas or electricity – but also construction contracts and building society savings contracts often use the term advance payment.