Translators get to see a lot of rental aparment contracts. Big ones, small ones, fat ones, slim ones, unclear ones, long ones and badly limiting ones. From preposterous airing policies to antiquated peaceful time stipulations, from cold lease to hot water, here's what to anticipate when you exist with a tenancy agreement for a flat in Germany. We're likewise happy to assist in more information if you actually wish to know what you're getting into before you sign on the dotted line.

Almost half of the population in German rents, and up until just recently, it's been simple to see why. Rental costs have actually been reasonably cheap and conditions very favourable for lessees. Yet as lease rates soar in the huge cities and as smart residential or commercial property developers get wind of the altering conditions, Bureaucracy Translation has discovered rental agreements getting longer, stricter and scarier (not unlike the rental costs themselves!).

The components of a rental agreement

The contract

The Mietvertrag (agreement/ rental arrangement/ lease) itself consists of some vital information such as

- the cost of your lease each month
- whether increases are allowed, and if so, how they are regulated
- the duration of the agreement
- the deposit quantity
- description of the space and any additional fittings or pieces of furnishings that may be included
- who is accountable for repair work and damages
- how to cancel or extend it
- restoration work
- how to leave the house when you vacate
- your house rules
- the handover report

Typical provisions in German leases

The expense of your lease

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

Something to bear in mind: the proprietor 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 exercises just how much everything in fact DID expense. If you've paid too much, you'll get the distinction back. Utility agreements frequently work similarly: they estimate what you'll pay, deduct it monthly, and after that refund or charge the distinction at the end of a specific period.

Rent increases

There was a law presented in 2015 called the Mietpreisbremse to stop rent boosts from leaving control. It was embraced in more than 300 German cities. Among the guidelines is that a new rental contract can't require lease of more than 10% of the typical price for a leased apartment or condo in the location. But freshly constructed homes are not covered under this guideline, and modernisation steps likewise offer property managers wiggle room to increase the rate. Tip: Learn just how much the previous occupant paid, even if you have actually already signed the rental contract. A proprietor can't increase the cost 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 could sign the contract to secure the flat and THEN go after up the proprietor to get your rent lowered (possibly with some legal help).

Staffelmiete (stepped rent) means that the lease increases every year in line with inflation and the boosts are secured for the next couple of years. There is no particular limit here - the boosts may be secured for the next 3 or 5 or ten years. If you're signing among these, enjoy out for how long your commitment is before you can cancel - up to 4 years is lawfully permissible. They can't increase your rent for at least one year from signing.

The duration of the lease

It might be a fixed-term agreement or it will be concluded for a limitless duration. You may get a fixed-term contract if the landlord is preparing to utilize the home themselves later down the track, or if it is furnished. Fixed-term agreements can be hard to break early, so you'll be responsible to inhabit the place for the whole term, even if you want to leave early, unless you can discover an appropriate replacement tenant and your property owner concurs to this.

The Kaution (Deposit)

Landlords can ask you for 3 months cold rent as a security deposit. The property manager has to keep this money safely in an escrow account separated from his/her personal financial resources. If the cash accrues interest, the interest belongs to the renter and needs to be paid when they leave. It's not uncommon to hear expats questioning how to get their deposit back when they have actually left the apartment, and being shocked that it takes months. The landlord has 6 months to return the deposit to you after you leave, plus any interest the sum accrued, minus any outstanding financial obligations for which you may be accountable, state for damages to the residential or commercial property or due to rent financial obligations. As appealing as it might be, you can get into difficulty if you simply keep your last 2 warm rental payments and inform your property owner to "keep the deposit".

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

Kündigung (Termination)

The statutory notice period for ending rental agreements as an occupant is 3 months. The longer you've lived in the home, the more observe your property manager needs to offer you if they require you to abandon: three months if you've been there for fewer than 5 years, six months if you've been there for fewer than 8 years, approximately 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 any longer - since 2015, this has actually been illegal. Since the need for rental residential or commercial properties is so high in big cities, lots of people are willing to disregard and pay a commission anyway to be favoured as a renter.

Housing policies

These govern the behaviour within the building and treatment of the residential or commercial property. You'll usually discover them held up on the wall inside the structure someplace. Typical guidelines to be discovered in the house rules: whether you are permitted to have a clothing dryer in the home, when you are not permitted to make sounds, whether you can keep pets, how to air and heat your apartment or condo appropriately, how to use the bins properly and so on. They are notorious for being strict and pedantic to the point of absurd, however you're anticipated to follow them. Whether you get away with vacuuming on a Sunday in spite of the statutory "quiet time" may depend on how relaxed your neighbours are and whether they complain to the Hausverwaltung (housing administration).

Operational costs ordinance

You might get some excerpts from the Operational Costs Ordinance connected to your rental agreement - these govern how proprietors can charge tenants for all the things required to make the structure function.

Übergabeprotokoll (Handover report)

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

How can I get help with the small print?

I 'd more than happy to send you a quote to equate your entire rental agreement. A 5-page rental contract 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 practical and you're under time pressure, send me the agreement 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 rate of a written translation.

Filed Under: Moving to Germany, Doing Business in Berlin, Transferring 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 seem like this is the serious and more useful version to my tirade about renting in Germany:
https://andreasmoser.blog/2018/05/28/rental-contracts/

January 26, 2019 at 9:07 am

Yes! Yes! Thanks for linking. I just translated two rental contracts recently, one had its own annex particularly for airing that specified 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 enabling the walls to get cold. There were even exclamation marks and even a "wie gesagt" here and there.

2. Heike Wheatly states

June 21, 2020 at 10:03 pm

Thank You for all of the terrific info. How would you go about including a clause for Lifelong Living rights to the Rental Agreement? I own a home in Germany and my Stepmom currently lives there. Her contract will be up next year but I want to provide her lifelong living right.

Thank You

June 30, 2020 at 1:21 pm

I am not sure, but here's a directory of English-speaking lawyers, in case you're in Berlin. Even if you're not, they might be pleased to consult by phone. Cheers, Kathleen.

3. Brian Pendergast states

September 1, 2020 at 3:23 pm

Thank you for the information. Do you understand if it is legal to consist of furniture in the expense calculator of the Nebenkosten?

September 9, 2020 at 10:40 pm

I just did a fast check - property owners can include an additional cost for furnishings, but there are limitations - you can charge 2% of the worth of the furniture however it assumes total devaluation after 10 years. So it depends on just how much the furniture expense and likewise how old the furnishings is. E.g if the furniture cost 5,000 EUR and was new at the time of the tenancy, the property owner might charge 100 EUR per month. There is a formula but it's late and my brain injures. Here's the site I used.

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 says

March 15, 2021 at 1:57 pm

We have a one year contract/ lease with our flat. We are needed in the lease to provide a two month notification to end. My concern is, if we were to give the 2 month notification and vacate 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 lease?
We are planning to leave 2 months early, so 10 months of the 12 month contract to give context.

April 28, 2021 at 9:15 pm

If you provide two months notice, you can move out faster, but youll still have to pay the two months completely. This is unless you can work out with your proprietor and get something in composing, e.g. by discovering a "Nachmieter" (new tenant) to take over those two 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 don't anticipate it to take place 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 expense in the rental contract, are we required to pay for them?

September 10, 2021 at 7:08 am

It's uncommon to become aware of a renter 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 costs when computing the rental cost per square metre is another story, obviously. I don't know whether the owner is entitled to include those things specifically in the operating expenses or not. And if they are neither defined in the operating expense nor consisted of in your cold rent, I would discover it odd for you as the renter to then get those bills. I 'd advise that you sign up with the Mieterverein in your regional location and inquire. Do not hesitate 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 help, we found a house that we like however the representative informed us that the landlord will provide us the home if we concur to live there for the minimum of 3 years, so we asked them to reduce it the 3 years the representative stated is the new law and if we need to break it, they will take our deposit. My question now is, which law is that or is the representative attempting to require to sign to a long lease.

Reply

- Kathleen Parker states

February 23, 2022 at 4:13 pm

Much to my surprise, this is acceptable. Minimum rental terms can be up to 4 years. Here's more details.