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Translators get to see a lot of rental aparment agreements. Big ones, small ones, fat ones, skinny ones, vague ones, long ones and badly restrictive ones. From unbelievable airing regulations to antiquated quiet time terms, from cold rent to hot water, here's what to expect when you're presented with a tenancy agreement for a flat in Germany. We're likewise pleased to assist in more detail if you truly would like to know what you're entering into before you sign on the dotted line.

Almost half of the population in German rents, and until just recently, it's been simple to see why. Rental costs have actually been relatively low-cost and conditions really favourable for lessees. Yet as rent costs skyrocket in the huge cities and as creative residential or commercial property developers get wind of the changing conditions, Red Tape Translation has noticed rental agreements getting longer, stricter and scarier (not unlike the rental prices themselves!).

The elements of a rental contract

The agreement

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

- the expense of your lease per month

whether increases are allowed, and if so, how they are regulated
the period of the contract
the deposit amount
description of the space and any additional fittings or pieces of furnishings that might be included
who is responsible for repairs and damages
how to cancel or extend it
remodelling work
how to leave the home when you leave
your house rules
the handover report

Typical clauses in German leases

The cost of your rent

There will be a Kaltmiete (cold rent - the simple expense of having the roof over your head) and after that there will be Nebenkosten (extra charges) such as Betriebskosten (operating expense for the structure like garbage disposal, stairwell cleaning) and Strom- und Heizkosten (heating and electrical power expenses). Both the lease and the additional charges are normally determined or approximated according to the size of your house - the bigger it is, the more you pay. Gas, electrical power and telephone contracts are typically the occupant's business, and it might be possible to pick your own providers.

Something to remember: the property manager will typically approximate the charges in advance and subtract them monthly. At the end of the year, you get a yearly statement for running costs which works out just how much whatever actually DID expense. If you've paid excessive, you'll get the difference back. Utility agreements often work similarly: they approximate what you'll pay, deduct 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. One of the guidelines is that a brand-new rental agreement can't require lease of more than 10% of the average cost for a rented house in the area. But recently constructed homes are not covered under this rule, and modernisation measures also offer landlords wiggle room to increase the cost. Tip: Find out how much the previous renter paid, even if you have actually already signed the rental agreement. A property owner can't increase the cost by more than 10% of what the previous tenant was paying (unless they do some that increases the value of the flat). If required, you might sign the contract to secure the flat and THEN go after up the property owner to get your rent minimized (potentially with some legal support).

Staffelmiete (stepped lease) implies that the rent increases every year in line with inflation and the increases are secured for the next few years. There is no particular limitation here - the boosts may be locked in for the next 3 or 5 or 10 years. If you're signing among these, keep an eye out for the length of time 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 finalizing.

The period of the lease

It might be a fixed-term agreement or it will be concluded for an unrestricted period. You may get a fixed-term contract if the proprietor is planning to utilize the house themselves later on down the track, or if it is provided. Fixed-term agreements can be hard to break early, so you'll be liable to occupy the place for the entire term, even if you want to leave early, unless you can find an ideal replacement renter and your property manager accepts this.

The Kaution (Deposit)

Landlords can ask you for 3 months cold lease as a security deposit. The proprietor has to store this money safely in an escrow account separated from his/her personal finances. If the cash accumulates interest, the interest belongs to the tenant and must be paid out when they abandon. It's not uncommon to hear expats questioning how to get their deposit back as soon as they've left the house, and being shocked that it takes months. The proprietor has 6 months to return the deposit to you after you vacate, plus any interest the sum accrued, minus any impressive financial obligations for which you may be accountable, say for damages to the residential or commercial property or due to lease financial obligations. As appealing as it might be, you can enter into difficulty if you simply keep your last 2 warm rental payments and inform your property manager to "keep the deposit".

You'll find a good and very comprehensive guide to rental deposits at All About Berlin.

Kündigung (Termination)

The statutory notice duration for ending rental agreements as a tenant is three months. The longer you have actually lived in the house, the more observe your property manager needs to offer you if they need you to vacate: three months if you've been there for less than 5 years, six months if you have actually been there for fewer than 8 years, up to an optimum of nine months notification.

Provision (Commission)

You do not need to pay the broker, property agent or individual offering you a rental flat a commission any longer - because 2015, this has been prohibited. Since the demand for rental residential or commercial properties is so high in big cities, lots of people are willing to turn a blind eye and pay a commission anyhow to be favoured as a renter.

Housing policies

These govern the behaviour within the structure and treatment of the residential or commercial property. You'll generally discover them stuck up on the wall inside the building somewhere. Typical guidelines to be found in your house guidelines: whether you are allowed to have a clothing dryer in the apartment, when you are not allowed to make sound, whether you can keep animals, how to air and heat your apartment or condo correctly, how to use the bins correctly etc. They are notorious for being rigorous and pedantic to the point of ludicrous, however you're expected to follow them. Whether you get away with vacuuming on a Sunday despite the statutory "peaceful time" might depend on how relaxed your neighbours are and whether they grumble to the Hausverwaltung (housing administration).

Operational costs regulation

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

Übergabeprotokoll (Handover report)

You and the agent/ proprietor will examine the apartment or condo, and they will make notes of preexisting damages, repairs and the condition of the residential or commercial property. If you see a small hole in the wall, point it out, and they'll make a note of it. This is likewise a great time to check that the heating works, even in summertime. If the property owner has guaranteed you repair work, make sure they were done or there's a consultation scheduled to have them done and get them listed in the handover report.

How can I get assist with the small print?

I 'd enjoy to send you a quote to translate your whole rental agreement. A 5-page rental agreement might 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 contract and I'll send you a quote for an appointment to go through the bottom lines face to face or over Skype, for around half the cost of a written translation.

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

Reader Interactions

Comments

1. Andreas Moser says

January 25, 2019 at 11:32 pm

I seem like this is the major and better 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 just translated two rental contracts last week, one had its own annex particularly for airing that stated airing 4 times a day for no longer than 5-10 minutes, highlighted that tilting wasn't sufficient, the window had to be open completely. It went on and on about not permitting the walls to get cold. There were even exclamation marks and even a "wie gesagt" here and there.

2. Heike Wheatly says

June 21, 2020 at 10:03 pm

Thank You for all of the fantastic details. How would you set about including a stipulation 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 however I want to give 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 lawyers, in case you remain in Berlin. Even if you're not, they might be happy to seek advice from by phone. Cheers, Kathleen.

3. Brian Pendergast says

September 1, 2020 at 3:23 pm

Thank you for the details. Do you understand if it is legal to include furniture in the cost calculator of the Nebenkosten?

September 9, 2020 at 10:40 pm

I simply did a fast check - landlords can add an additional fee for furniture, but there are limits - you can charge 2% of the value of the furniture but it presumes complete depreciation after ten years. So it depends upon how much the furniture cost and also how old the furniture is. E.g if the furnishings cost 5,000 EUR and was brand-new at the time of the occupancy, the property manager could charge 100 EUR each month. There is a formula however it's late and my brain harms. Here's the website I utilized.

4. Jasper says

March 7, 2021 at 10:00 pm

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

April 28, 2021 at 9:19 pm

Oh you can discover them all over the place. Just Google "Mietvertrag Vorlage".

5. Christina G says

March 15, 2021 at 1:57 pm

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

April 28, 2021 at 9:15 pm

If you provide 2 months notification, you can vacate earlier, however youll still need to pay the 2 months completely. This is unless you can work out with your property manager and get something in writing, e.g. by discovering a "Nachmieter" (new tenant) to take control of those 2 months for you. You'll get your deposit back ultimately as long as everything is done contractually and you do not owe any cash, but don't expect it to occur rapidly. It can take 6 months in many cases to see the cash.

6. Jody says

June 21, 2021 at 6:29 am

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

September 10, 2021 at 7:08 am

It's uncommon to hear of a tenant being charged residential or commercial property tax and residential or commercial property insurance. Those are expenses that the owner normally covers. Whether the owner then considers those 2 costs when calculating the rental cost per square metre is another story, of course. I do not know whether the owner is entitled to include 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 renter to then get those costs. I 'd suggest that you join the Mieterverein in your local area and ask. Do not hesitate to report back, that is an odd one!

7. Eunice states

January 13, 2022 at 10:19 am

Hi, my name is Eunice, I need a little aid, we discovered an apartment that we like but the agent informed us that the property manager will provide us your house if we agree to live there for the minimum of 3 years, so we asked them to decrease it the 3 years the agent said is the new law and if we must break it, they will take our deposit. My concern now is, which law is that or is the agent trying to require to sign to a long lease.

Reply

- Kathleen Parker says

February 23, 2022 at 4:13 pm

Much to my surprise, this is allowable. Minimum rental terms can be as much as 4 years. Here's more information.