A Guide to Rental Contracts In Germany

Translators get to see a great deal of rental aparment contracts. Big ones, small ones, fat ones, slim ones, vague ones, long ones and horribly limiting ones. From outrageous airing policies to old quiet time terms, from cold lease to hot water, here's what to expect when you exist with a tenancy contract for a flat in Germany. We're likewise pleased to assist in more information if you actually wish to know what you're entering into before you sign on the dotted line.

Almost half of the population in German leas, and till just recently, it's been easy to see why. Rental prices have actually been reasonably cheap and conditions extremely beneficial for lessees. Yet as rent prices soar in the big cities and as creative residential or commercial property developers discover the altering conditions, Bureaucracy Translation has seen rental contracts getting longer, more stringent and scarier (not unlike the rental rates themselves!).

The parts of a rental contract

The agreement

The Mietvertrag (contract/ rental contract/ lease) itself contains some vital information such as

- the cost of your rent each month
- whether boosts are permitted, and if so, how they are controlled
- the period of the contract
- the deposit quantity
- description of the space and any extra fittings or furniture pieces that might be consisted of
- who is accountable for repairs and damages
- how to cancel or extend it
- remodelling work
- how to leave the house when you leave
- your house rules
- the handover report

Typical provisions in German leases

The expense of your rent

There will be a Kaltmiete (cold rent - the basic expense of having the roof over your head) and after that 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 electricity costs). Both the lease and the additional charges are generally determined or approximated according to the size of your apartment or condo - the bigger it is, the more you pay. Gas, electrical power and telephone contracts are generally the occupant's organization, and it may be possible to pick your own suppliers.

Something to remember: the landlord will frequently approximate the charges in advance and subtract them monthly. At the end of the year, you get an annual declaration for operating costs which works out how much everything actually DID cost. If you have actually paid excessive, you'll get the distinction back. Utility agreements typically work similarly: they approximate what you'll pay, subtract it monthly, and then refund or charge the difference at the end of a specific period.

Rent increases

There was a law introduced in 2015 called the Mietpreisbremse to stop rent increases from leaving control. It was embraced in more than 300 German cities. Among the guidelines is that a brand-new rental agreement can't require rent of more than 10% of the average price for a leased apartment in the area. But newly built apartments are not covered under this guideline, and modernisation procedures likewise offer landlords wiggle space to increase the price. Tip: Discover just how much the previous tenant paid, even if you've already signed the rental agreement. A property manager can't increase the rate by more than 10% of what the previous tenant was paying (unless they do some modernisation that increases the value of the flat). If essential, you might sign the agreement to protect the flat and after that chase after up the proprietor to get your lease decreased (perhaps with some legal help).

Staffelmiete (stepped rent) means that the lease increases every year in line with inflation and the boosts are locked in for the next few years. There is no particular limit here - the increases may be secured for the next 3 or 5 or ten years. If you're signing among these, keep an eye out for how long your dedication is before you can cancel - as much as 4 years is legally allowable. They can't increase your lease for a minimum of one year from finalizing.

The period of the lease

It may be a fixed-term agreement or it will be concluded for an unrestricted period. You might get a fixed-term contract if the property owner is planning to utilize the apartment themselves later on down the track, or if it is furnished. Fixed-term contracts can be difficult to break early, so you'll be accountable to occupy the location for the entire term, even if you desire to leave early, unless you can discover a suitable replacement occupant and your property owner consents to this.

The Kaution (Deposit)

Landlords can ask you for 3 months cold rent as a down payment. The property owner needs to store this cash safely in an escrow account separated from his/her individual financial resources. If the money accrues interest, the interest comes from the renter and needs to be paid when they vacate. It's not unusual to hear expats questioning how to get their deposit back when they have actually left the home, and being stunned that it takes months. The proprietor has 6 months to return the deposit to you after you leave, plus any interest the sum accumulated, minus any arrearages for which you might be liable, state for damages to the residential or commercial property or due to lease financial obligations. As appealing as it might be, you can get into problem if you simply withhold your last 2 warm rental payments and inform your proprietor to "keep the deposit".

You'll discover a good and extremely extensive guide to rental deposits at All About Berlin.

Kündigung (Termination)

The statutory notice period for ending rental contracts as an occupant is three months. The longer you've lived in the apartment or condo, the more discover your property manager has to offer you if they require you to abandon: three months if you've been there for fewer than five years, six months if you have actually been there for less than 8 years, up to a maximum of nine months notification.

Provision (Commission)

You don't have to pay the broker, realty representative or individual offering you a rental flat a commission anymore - given that 2015, this has been illegal. Since the need for rental residential or commercial properties is so high in huge cities, plenty of people are willing to turn a blind eye and pay a commission anyhow to be favoured as a tenant.

Housing regulations

These govern the behaviour within the building and treatment of the residential or commercial property. You'll usually find them stuck up on the wall inside the building somewhere. Typical guidelines to be found in the house rules: whether you are enabled to have a clothes dryer in the apartment, when you are not allowed to make sounds, whether you can keep animals, how to air and heat your apartment or condo effectively, how to use the bins correctly etc. They are well-known for being stringent and pedantic to the point of ludicrous, but you're expected to follow them. Whether you get away with vacuuming on a Sunday in spite of the statutory "peaceful time" may depend upon how unwinded your neighbours are and whether they grumble to the Hausverwaltung (housing administration).

Operational costs regulation

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

Übergabeprotokoll (Handover report)

You and the agent/ property manager will check the apartment, and they will make notes of preexisting damages, repairs 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 likewise a great time to examine that the heating works, even in summer season. If the landlord has guaranteed you repairs, make sure they were done or there's an appointment reserved to have them done and get them noted in the handover report.

How can I get assist with the little print?

I 'd more than happy to send you a quote to translate your whole rental agreement. A 5-page rental contract may cost 200 Euros, a 20-page lease is most 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 cost of a written translation.

Filed Under: Transferring To Germany, Doing Business in Berlin, Transferring to Berlin, Transferring To Munich Tagged With: agreements, guide, leasing

Reader Interactions

Comments

1. Andreas Moser states

January 25, 2019 at 11:32 pm

I seem like this is the major and better version to my rant 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 equated two rental contracts last week, one had its own annex specifically for airing that stated airing 4 times a day for no longer than 5-10 minutes, emphasized that tilting wasn't excellent enough, the window had to be open completely. It continued 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 terrific details. How would you tackle including a provision for Lifelong Living rights to the Rental Agreement? I own a home in Germany and my Stepmom currently lives there. Her agreement will be up next year but 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 site of English-speaking attorneys, in case you remain in Berlin. Even if you're not, they may be happy to consult 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 include furnishings in the cost calculator of the Nebenkosten?

September 9, 2020 at 10:40 pm

I just did a quick check - property managers can include an additional cost for furnishings, but there are limits - you can charge 2% of the value of the furnishings however it presumes total depreciation after 10 years. So it depends on just how much the furniture expense and likewise how old the furniture is. E.g if the furniture cost 5,000 EUR and was brand-new at the time of the occupancy, the proprietor might charge 100 EUR monthly. There is a formula but it's late and my brain harms. 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 place. Just Google "Mietvertrag Vorlage".

5. Christina G states

March 15, 2021 at 1:57 pm

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

April 28, 2021 at 9:15 pm

If you provide two months notice, you can move out faster, but youll still need to pay the 2 months completely. This is unless you can work out with your property owner and get something in composing, e.g. by finding a "Nachmieter" (new renter) to take control of those two months for you. You'll get your deposit back ultimately as long as everything is done contractually and you don't owe any money, but do not anticipate it to occur rapidly. It can take 6 months sometimes to see the cash.

6. Jody states

June 21, 2021 at 6:29 am

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

September 10, 2021 at 7:08 am

It's unusual to become aware of a renter being charged residential or commercial property tax and residential or commercial property insurance. Those are expenses that the owner typically covers. Whether the owner then considers those 2 expenses when calculating the rental cost per square metre is another story, naturally. I do not understand whether the owner is entitled to consist of those things specifically in the operating expenses or not. And if they are neither specified in the operating expense nor consisted of in your cold rent, I would discover it odd for you as the occupant to then get those expenses. I 'd recommend that you join the Mieterverein in your local area and inquire. Feel complimentary 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 told us that the property manager will give us your house if we agree to live there for the minimum of 3 years, so we asked to decrease it the 3 years the agent said is the new law and if we ought to break it, they will take our deposit. My concern now is, which law is that or is the agent attempting to force to sign to a long lease.

- Kathleen Parker states