German BGH: Implied Utility Contracts for Single-Room Rentals

May 23, 2025 Benn-Ibler Rechtsanwälte

The German Federal Court of Justice (Bundesgerichtshof, hereinafter BGH) has clarified that, when individual rooms in an apartment are rented out under separate agreements and there is only one shared electricity and gas meter, the contract from the energy supply company is directed at the owner, not the tenants.

In the case at hand, the claimant, a utility company, demanded payment from the defendant landlady for the provision of electricity and gas to an apartment. The apartment was divided into rooms rented individually to different tenants. Common areas, such as the kitchen and bathroom, were shared. However, there was only one electricity and gas meter, and there were no written supply contracts.

The landlady refused to pay, claiming she was not a party to the energy supply contract. In her opinion, the apartment’s tenants were liable.

According to the ruling of the BGH, which upheld the appeal, an implied energy supply contract had been concluded with the owner-landlady. The energy supply was based on an offer. This offer had been directed at the owner, not the individual tenants.

Without individual meters, consumption cannot be allocated to a specific tenant. Furthermore, it is unreasonable to expect tenants to be liable for the consumption of third parties. The energy supplier typically turns to the person who has control over the supply unit. In this case, the landlady. However, it was the landlady’s particular rental scheme that had created a situation where individual utility consumption could not be allocated.

BGH VIII ZR 300/23 (15 April 2025)