A Guide to Rental Contracts In Germany

Translators get to see a great deal of rental aparment contracts. Big ones, little ones, fat ones, slim ones, vague ones, long ones and horribly limiting ones. From unbelievable airing regulations to old quiet time terms, from cold lease to hot water, here's what to expect when you're presented with a tenancy agreement for a flat in Germany. We're likewise delighted to help in more detail if you really wish to know what you're entering before you sign on the dotted line.

Almost half of the population in German rents, and until recently, it's been simple to see why. Rental costs have been reasonably inexpensive and conditions extremely beneficial for lessees. Yet as lease rates skyrocket in the big cities and as smart residential or commercial property developers get wind of the altering conditions, Red Tape Translation has seen rental agreements getting longer, more stringent and scarier (not unlike the rental rates themselves!).

The elements of a rental agreement

The agreement

The Mietvertrag (agreement/ rental arrangement/ lease) itself contains some essential details such as

- the expense of your rent per month
- whether increases are allowed, and if so, how they are regulated
- the duration of the agreement
- the deposit quantity
- description of the area and any additional fittings or furniture pieces that may be consisted of
- who is accountable for repairs and damages
- how to cancel or extend it
- restoration work
- how to leave the apartment when you abandon
- your home guidelines
- the handover report

Typical clauses in German leases

The cost of your rent

There will be a Kaltmiete (cold rent - the easy expense of having the roofing over your head) and then there will be Nebenkosten (additional charges) such as Betriebskosten (operating costs for the structure like waste disposal, stairwell cleansing) and Strom- und Heizkosten (heating and electrical energy costs). Both the lease and the additional charges are generally determined or approximated according to the size of your apartment - the bigger it is, the more you pay. Gas, electrical energy and telephone agreements are typically the occupant's organization, and it may be possible to choose your own providers.

Something to keep in mind: the property manager will typically estimate the charges in advance and subtract them monthly. At the end of the year, you get an annual declaration for running expenses which works out how much everything really DID expense. If you've paid too much, you'll get the distinction back. Utility contracts often work similarly: they estimate what you'll pay, deduct it monthly, and after that refund or charge the difference at the end of a particular period.

Rent increases

There was a law presented in 2015 called the Mietpreisbremse to stop rent boosts from getting out of control. It was embraced in more than 300 German cities. One of the rules is that a new rental contract can't require lease of more than 10% of the average price for a rented home in the area. But recently developed houses are not covered under this guideline, and modernisation measures likewise give property owners wiggle room to increase the cost. Tip: Find out how much the previous tenant paid, even if you have actually already signed the rental contract. A proprietor can't increase the rate by more than 10% of what the previous occupant was paying (unless they do some modernisation that increases the value of the flat). If required, you might sign the contract to secure the flat and after that chase up the property owner to get your lease reduced (potentially with some legal assistance).

Staffelmiete (stepped rent) implies that the rent increases every year in line with inflation and the increases are secured for the next couple of years. There is no particular limit here - the boosts may be locked in for the next 3 or 5 or 10 years. If you're signing one of these, keep an eye out for for how long your dedication is before you can cancel - as much as 4 years is lawfully permissible. They can't increase your rent for at least one year from signing.

The duration of the lease

It may be a fixed-term contract or it will be concluded for an unrestricted period. You may get a fixed-term agreement if the landlord is planning to use the apartment themselves later down the track, or if it is provided. Fixed-term contracts can be difficult to break early, so you'll be accountable to occupy the location for the whole term, even if you wish to leave early, unless you can find a suitable replacement renter and your property owner accepts this.

The Kaution (Deposit)

Landlords can ask you for 3 months cold rent as a security deposit. The property owner has to save this money safely in an escrow account separated from his/her personal financial resources. If the cash accumulates interest, the interest belongs to the tenant and should be paid out when they abandon. It's not uncommon to hear expats wondering how to get their deposit back when they have actually left the home, and being surprised that it takes months. The property owner has six months to return the deposit to you after you vacate, plus any interest the sum accumulated, minus any impressive financial obligations for which you may be liable, state for damages to the residential or commercial property or due to lease financial obligations. As tempting as it may be, you can enter into problem if you just keep your last 2 warm rental payments and tell your proprietor to "keep the deposit".

You'll discover an excellent and very extensive guide to rental deposits at All About Berlin.

Kündigung (Termination)

The statutory notice period for terminating rental contracts as a tenant is 3 months. The longer you have actually lived in the home, the more notice your landlord has to provide you if they require you to abandon: 3 months if you've been there for fewer than five years, 6 months if you've been there for fewer than 8 years, as much as a maximum of 9 months notification.

Provision (Commission)

You do not have to pay the broker, genuine estate agent or person offering you a rental flat a commission anymore - considering that 2015, this has been illegal. Since the demand for rental residential or commercial properties is so high in big cities, plenty of individuals are ready to disregard and pay a commission anyway to be favoured as an occupant.

Housing regulations

These govern the behaviour within the building and treatment of the residential or commercial property. You'll usually find them held up on the wall inside the structure somewhere. Typical directions to be found in the home guidelines: whether you are allowed to have a clothing dryer in the house, when you are not permitted to make sounds, whether you can keep family pets, how to air and heat your home appropriately, how to use the bins correctly and so on. They are infamous for being stringent and pedantic to the point of ridiculous, however you're expected to follow them. Whether you get away with vacuuming on a Sunday regardless of the statutory "quiet time" might depend on how relaxed your neighbours are and whether they grumble to the Hausverwaltung (housing administration).

Operational expenses ordinance

You may get some excerpts from the Operational Costs Ordinance attached to your rental agreement - these govern how proprietors can charge renters for all the important things required to make the building function.

Übergabeprotokoll (Handover report)

You and the representative/ proprietor will inspect the house, and they will make notes of preexisting damages, repair work and the condition of the residential or commercial property. If you see a little hole in the wall, point it out, and they'll make a note of it. This is also a great time to check that the heating works, even in summer. If the property owner has guaranteed you repair work, ensure they were done or there's an appointment reserved to have them done and get them listed in the handover report.

How can I get assist with the small print?

I 'd more than happy to send you a quote to equate your whole rental contract. A 5-page rental agreement may cost 200 Euros, a 20-page lease is likely to set you back around 800-1000 Euros, depending upon how intricate it is. If this is not reasonable and you're under time pressure, send me the agreement and I'll send you a quote for a consultation to go through the bottom lines in person or over Skype, for around half the rate of a written translation.

Filed Under: Moving to Germany, Doing Business in Berlin, Relocating to Berlin, Relocating To Munich Tagged With: agreements, guide, renting

Reader Interactions

Comments

1. Andreas Moser states

January 25, 2019 at 11:32 pm

I feel like this is the serious and more useful variation to my tirade about leasing in Germany:
https://andreasmoser.blog/2018/05/28/rental-contracts/

January 26, 2019 at 9:07 am

Yes! Yes! Thanks for connecting. I simply translated 2 rental contracts last week, one had its own annex specifically for airing that specified airing 4 times a day for no longer than 5-10 minutes, highlighted that tilting wasn't sufficient, the window needed to be open completely. It went on and on about not enabling the walls to get cold. There were even exclamation marks and even a "wie gesagt" occasionally.

2. Heike Wheatly states

June 21, 2020 at 10:03 pm

Thank You for all of the excellent info. How would you tackle adding a provision for Lifelong Living rights to the Rental Agreement? I own a home in Germany and my Stepmom presently lives there. Her agreement will be up next year however I would like to offer her long-lasting living right.

Thank You

June 30, 2020 at 1:21 pm

I am not sure, however here's a directory of English-speaking legal representatives, in case you're in Berlin. Even if you're not, they may be pleased to seek advice from by phone. Cheers, Kathleen.

3. Brian Pendergast says

September 1, 2020 at 3:23 pm

Thank you for the info. Do you know if it is legal to consist of furnishings in the cost calculator of the Nebenkosten?

September 9, 2020 at 10:40 pm

I simply did a fast check - property managers can add an additional charge for furnishings, but there are limits - you can charge 2% of the value of the furniture but it assumes total depreciation after ten years. So it depends upon just how much the furniture cost and likewise how old the furnishings is. E.g if the furnishings cost 5,000 EUR and was brand-new at the time of the occupancy, the landlord might charge 100 EUR per month. There is a formula however it's late and my brain hurts. Here's the website I utilized.

4. Jasper states

March 7, 2021 at 10:00 pm

Hi Kathleen! Thank you for your efforts. I was questioning if there's a design template for the Mietvertrag?

April 28, 2021 at 9:19 pm

Oh you can find them all over the location. Just Google "Mietvertrag Vorlage".

5. Christina G states

March 15, 2021 at 1:57 pm

We have a one year contract/ lease with our flat. We are needed in the lease to offer a two month notice to end. My concern is, if we were to provide the two month notice and vacate before completion of the agreement term, are we still entitled to get our deposit back? And are we not needed to pay the remaining months rent?
We are planning to leave 2 months early, so 10 months of the 12 month contract to provide context.

April 28, 2021 at 9:15 pm

If you provide two months notice, you can leave faster, but youll still need to pay the 2 months in full. This is unless you can work out with your landlord and get something in composing, e.g. by finding a "Nachmieter" (brand-new occupant) to take control of those 2 months for you. You'll get your deposit back ultimately as long as whatever is done contractually and you do not owe any cash, but do not expect it to happen quickly. It can take 6 months in many cases to see the money.

6. Jody says

June 21, 2021 at 6:29 am

If the residential or commercial property land tax and residential or commercial property insurance coverage are not stated on the operating expenses in the rental agreement, are we obliged to spend for them?

September 10, 2021 at 7:08 am

It's uncommon to become aware of an occupant being charged residential or commercial property tax and residential or commercial property insurance coverage. Those are expenses that the owner normally covers. Whether the owner then considers those 2 expenses when computing the rental cost per square metre is another story, naturally. I don't understand whether the owner is entitled to consist of those things particularly in the operating expense or not. And if they are neither specified in the operating expense nor included in your cold rent, I would find it odd for you as the occupant to then get those expenses. I 'd advise that you sign up with the Mieterverein in your regional location and ask. Feel totally free to report back, that is an odd one!

7. Eunice says

January 13, 2022 at 10:19 am

Hi, my name is Eunice, I need a little assistance, we found an apartment that we like but the agent informed us that the proprietor will provide us the house if we accept live there for the minimum of 3 years, so we inquired to decrease it the 3 years the representative stated is the new law and if we should break it, they will take our deposit. My question now is, which law is that or is the representative trying to require to sign to a long lease.

- Kathleen Parker states