How do you settle debts in a flat share?

With an overview of balances and fixed settling-up dates, for example at the end of the month. An app works out the transfers needed.

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Settling debts between flatmates and friends in Germany

Small amounts are easy to forget, which is exactly why they pile up. After a few months nobody knows who owes whom, and the mood suffers. That applies among friends as much as in a flat share. This guide covers how to record, raise and settle debts, what applies to borrowed money and when claims expire. The legal parts describe the position in Germany; this is an overview and not legal advice.

By Abubakar Abditube (ManaWG) · Published 29 October 2026 · Updated 29 October 2026

Why debts build up

Everyone pays for everyone now and then: pizza, shopping, a repair, the back payment on electricity. Without a record, after a month neither creditor nor debtor knows how much is open. Whoever pays more often feels taken advantage of, and whoever pays less often does not notice. The problem is rarely ill will. Usually nobody has an overview.

Record it straight away

Enter every expense immediately, while the receipt is to hand. In ManaWG’s shared expenses you can see each person’s balance at any time. The shares always add up to exactly the total. With an equal split, any leftover cent moves on from one entry to the next, so it does not always fall on the same person.

Settle up with a few transfers

When several people owe each other money, the balances can be netted off. Instead of everyone transferring to everyone else, a few payments are usually enough. ManaWG suggests transfers that settle everything with few payments. The money moves outside the app; you only mark it as paid.

Example with four people

In a flat share of four, Lea has paid €120 more than her share and Tim €20 more. Jonas has paid €80 too little, Mia €60. Settled one by one, up to six transfers would be needed. Netted off, three are enough: Jonas transfers €80 to Lea, Mia transfers €40 to Lea and €20 to Tim. After that, everyone is at zero.

Fixed dates instead of constant reminders

Nobody likes asking about €4.50. A fixed settling-up day, such as the first of the month, takes the awkwardness out: that is when you settle, whatever the amount. ManaWG sends a monthly statement by email at the start of the month with the transfer suggestions. Anyone can switch that email off.

When someone moves out with open amounts

Moving out is the easiest moment to sort everything out, and the last one when everyone is still in one flat. Bring the departing person’s balance to zero before their last day. If a Nebenkosten statement is still due, agree in writing how the back payment or credit will be shared later, and swap contact details. Anyone who chases afterwards often waits a long time.

When everyone is liable together

With a joint main tenancy (Hauptmietvertrag, the tenancy agreement with the landlord, see the tenancy agreement guide), the landlord can demand the whole rent from any one tenant, even if the others do not pay (§ 421 BGB, the German Civil Code). Anyone who has paid more than their share can reclaim the rest from the others. If in doubt, equality applies: everyone bears the same share unless something else is agreed (§ 426 BGB). Put in writing beforehand how you split if it should not be equal.

When someone does not pay

Raise it calmly and in private, name the amount and a date. Tips for conversations like this are in resolving conflict in a flat share. If that does not help, bring it to the flat meeting without embarrassing the person. Find out whether paying in instalments helps if money is tight. Legal steps are rarely worthwhile for small amounts and strain living together more than the open amount does.

Lent instead of shared: debts between friends

Borrowed money is different from a shared expense: someone fronts the Kaution (rental deposit) or helps out with €300 until the end of the month. That is a loan (Darlehen), for which § 488 BGB prescribes no particular form between private individuals. If no repayment date is agreed, it only falls due when one side gives notice, and the notice period is three months (§ 488 para. 3 BGB). So always name a date when you lend. If an argument comes later, proof is usually missing. What helps is a bank transfer with a reference such as “Loan, repay by 30 Nov”, a message in which the other person confirms the amount and date, or a short signed note with amount, date and repayment date. Keep such loans out of your shared expenses so that the balances stay right.

Reminders and limitation: how long you can claim the money back

Once the agreed date has passed, send one written reminder with the amount and a new date, by email or message so that it can be proved. If a fixed calendar day was agreed, the person is in default after that day even without a reminder (§ 286 para. 2 no. 1 BGB), provided they are responsible for the late payment (§ 286 para. 4 BGB). If no date was agreed, default only begins when the person fails to pay after a reminder sent once the money is due (§ 286 para. 1 BGB). The next step would be a court order for payment (Mahnbescheid), which costs fees. For small amounts and among friends, it is worth weighing that up first. But do not wait too long: the regular limitation period is three years (§ 195 BGB) and starts at the end of the year in which the claim arose and you knew who owed you the money (§ 199 para. 1 BGB). Example: if repayment was agreed for 15 August 2026, the period starts at the end of 31 December 2026 and ends at the end of 31 December 2029. After that, the debtor may refuse to pay (§ 214 para. 1 BGB).

Frequently asked questions

How do I raise money owed with a flatmate?

Calmly and in private, with a specific amount and date. A fixed settling-up day for everyone usually makes chasing unnecessary.

Does ManaWG transfer money automatically?

No. ManaWG calculates suggestions, you transfer the money yourselves and mark amounts as paid.

What happens to debts when a flatmate moves out?

Open amounts should be settled before they leave. For a later Nebenkosten statement, agree beforehand how the back payment or credit will be shared.

What can you do if a friend does not repay borrowed money in Germany?

Speak to them calmly and name the amount and a new date. If that does not help, send a reminder in writing or by message. If a calendar date was agreed, they are in default once it has passed; otherwise only after a reminder sent once the money is due (§ 286 para. 1 and 2 BGB). For small amounts, letting go is often more sensible than a court order for payment.

How long can you claim back debts between friends in Germany?

Usually three years (§ 195 BGB). The period starts at the end of the year in which repayment fell due and you knew who owed you the money (§ 199 para. 1 BGB). After that, the debtor may refuse to pay (§ 214 para. 1 BGB).

Do you need a written contract for borrowed money in Germany?

No, § 488 BGB prescribes no form for a loan between private individuals. Without proof, though, it is hard to show later that it was a loan and by when it was due back. So put the amount and date in writing.

Sources (as of 29 October 2026)

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