Whether you’re moving into a new apartment or planning to rent one out, there are a few things to consider before signing a lease. Our practical guide to German rental contracts has got you covered.
27 FEBRUARY 2023 21 min readYou might have heard horror stories about apartment hunting: 200 inquiries, 10 apartment viewings, and only one offer. Finding a rental apartment in cities like Berlin or Munich is challenging — so, it’s no wonder some people barely look at the lease agreement when they finally get to sign. The important thing is to have found a place, right? Actually, there are a few rules and regulations landlords are obligated to follow. That's why you should go through your rental contract with a fine-tooth comb before signing it, and in this guide, you'll learn what to look out for. From different types of rental agreements and legal clauses and obligations to minimum rental periods — we've got you covered!
A rental contract is a contractual agreement between two parties that defines the rules of renting an apartment. The two parties are the tenant and the landlord, who can be either the apartment owner or a property management company. As a tenant, you pay monthly rent for using the owner’s property, such as a house or an apartment. In Germany, you pay the full rent on the first of each month. The rental contract specifies essential points such as the move-in date, the monthly rent amount, the deposit amount, the utility costs, the terms of use, and the termination clauses. We’ll discuss all of this in more detail later on in this guide.
Generally, your landlord issues the rental contract and sends you two printed copies by mail for you to sign. You keep one signed document and return the other to your landlord. Some landlords send the rental agreement by email to clarify any questions you might have beforehand. You might even sign the contract in person, for instance, if it's a sublease in a shared apartment. If you own property and want to set up a rental agreement, you can find countless templates in German online — for example, this pdf by the Mieterschutzbund (Tenant Protection Association). If you're looking for a Word document version, check out this template by immoscout24, a popular property rental platform.
Regardless of how you receive the rental contract, read through it thoroughly before signing it. That's especially important if you haven’t viewed the apartment or house yet. Don't let yourself be pressured into anything — a false sense of urgency can be a sign of a rental scam! Also, remember that you're not obligated to sign a lease. If the terms seem shady, always get a second opinion, for instance, from a lawyer or a native German speaker. Some landlords exploit the housing shortage and include conditions that are ridiculous or even unethical. On top of that, the contract might not cover some of the points that are important to you. Let’s say you plan to take a sabbatical or do an internship abroad. In that case, you might want to sublet your apartment. If your rental contract doesn’t include any information about subleasing, find out if your landlord is generally ok with this and what the terms would be before signing.
The German Civil Code (Bürgerliches Gesetzbuch, or BGB) lays down the rules for residential lease agreements. According to the BGB, rental agreements have to favor the tenant and not give landlords an advantage. However, the devil is usually in the details, and a lawyer or court might interpret a rental contract differently depending on the specific wording. That’s another reason why you should go through the rental contract in detail to clarify any vague words and phrases. The more accurate the terms are, the less potential there is for conflict later on.
Rental contracts for houses are only slightly different from those for apartments. They usually have a few more obligations, such as removing snow in front of the house. Since your landlord can't divide the ancillary costs of single-family homes among several parties, you might have to set up contracts with providers yourself. However, this might actually benefit you — you have full control of the costs and, depending on your chosen provider, could save money on the gas bill and other utilities.
In large cities, an underground car park can be a huge bonus. Some landlords offer rental contracts that include a parking space in the building's underground parking. However, it usually makes more sense to set up a separate agreement for the parking space. This way, you can easily terminate the contract if you want to reduce your spending or sell your car. Note that this type of contract doesn’t come with extra protection, which means cancellation periods might be shorter. Tip: If your rental agreement includes a parking space that you don't need, you can ask permission from your landlord to sublet the space to someone else.
It’s a good idea to sign a separate contract for carports, too. If your rental agreement already includes a carport you don't need, you can also sublet the space. Rental agreements for carports are governed by common law, so the landlord must pay cosmetic repairs, operating costs, and similar expenses. Note that you can only use a carport to park vehicles, such as a car or camper van. By the way, besides residential property lease agreements, there are also commercial agreements. For example, if you want to start your own business and rent commercial spaces for your store or warehouse, you need to sign a non-residential lease agreement.
In Germany, rental contracts are usually a few pages long, divided into paragraphs, and then subdivided into articles. Which regulations apply and how they’re phrased depends to some extent on the landlord and the space that you’re renting. However, there are a few elements that rental contracts have to include. Here’s an overview so that you know what to expect:
Once you sign the lease agreement, you must transfer the monthly rent on time. You also need to pay the deposit and respect the house rules. For example, if you want to get a dog, you might need your landlord's approval. Speaking of approval: You're only allowed to do construction work with the explicit agreement of your landlord. So, before taking down a wall to enlarge the kitchen, talk to your landlord — it's their property, not yours. This rule doesn’t apply if you’re installing a kitchen, but you might have to dismantle it when you move out. And if your landlord provided you with a standard stove and sink but you stored it in the cellar and bought your own appliances, you have to put everything back in place before you move.
As a landlord, you'll enjoy a regular monthly income, but you also have some important obligations. Starting in 2023, landlords have to file a property tax return. On top of that, you have to prepare the annual bill for utility costs, and you need to take care of the maintenance of the building. Renovation or regular repair costs, e.g., for the railing in the hallway, are your responsibility, too. And if your tenant spots problems with the property that they didn’t cause, you have to fix those and pay out of your own pocket. Luckily, some of these expenses are tax-deductible!
The legal period of notice for a rental contract is three months. As a rule, your cancellation has to be in writing. And if you’re moving in together with someone and you’re both main tenants in the rental contract, then both of you have to sign the cancellation letter. Read our guide to terminating a rental agreement to learn more.
Changed your mind or got a better offer? Unfortunately, you can't just withdraw from a rental contract once you’ve signed it — it’s legally binding. There are a few exceptions though: If you didn't view the apartment or your landlord concealed defects that the apartment has, you can withdraw from the contract within 14 days.
From a landlord's point of view, it makes sense to set up a lease agreement with a minimum rental period. After all, it’s quite a hassle to create rental ads and check Schufa scores as well as other documents of applicants. A standard minimum rental period is between 12 and 48 months. However, it can only be up to four years. But even if the minimum period in your lease is just 12 months, things can change in the blink of an eye. Maybe you change careers and need to move to a different city. Or you're having a baby and need a bigger place. Even defects are a valid reason to terminate your contract early. One option to get out of a contract early is to set up a termination agreement between both parties. The downside is that your landlord can claim compensation for any costs that your untimely termination caused. Alternatively, you can ask your landlord if they agree to an interim solution, such as a short-term lease agreement with a third party. This way, someone else can stay in your apartment for the remainder of the lease period, and you save a few months' rent.
Whether you’re in a relationship or share the apartment with friends, if several people are listed in the rental contract, they can only cancel it as a group. In shared apartments, having one person as the main tenant and setting up sublease agreements with the other roommates helps to avoid that. This option also works well for couples — for instance, if you want to try living together first before going all in. Canceling together doesn’t necessarily mean you both have to move out. If the landlord considers one person’s salary sufficient, they can set up a new lease agreement. So, the decision about who stays in the apartment is basically up to the landlord. And if you’re getting a divorce? In this case, the family court might allocate the apartment to one of the divorced parties.
Broke up with your partner and want to move out? If you're both the main tenants, you can only terminate the lease agreement together. It’s then up to the landlord if you or your ex-partner are able to keep the apartment under a new contract. Of course, one of you can move out but remain on the lease agreement. That, however, could mean legal issues later on. For example, if you move out but your ex-partner can’t pay the rent alone, the landlord can legally claim payment from you. One way to protect yourself is by setting up an agreement under private law between you and your ex. If you have trouble coming up with the right phrasing, consult a lawyer, the Tenant Protection Association, or a native German speaker. Divorce, however, is a different matter. Once the court has issued the divorce decree, you can send a copy to your landlord and automatically leave the rental contract.
We’ve already covered a lot of information about rental contracts in Germany — but if you’re searching for more, here are answers to some frequently asked questions.
No matter how long you've lived in your apartment, your current rental contract remains valid, even if the owner changes. That means that you don't need to worry about an immediate termination or a rent increase. However, according to § 577a of the German Civil Code (BGB), the new owner can claim their right to move into the flat after a grace period of three years — provided they bought the apartment when you already lived there. On top of that, the reasons for terminating your contract must be legally valid.
The German phrase “hilfsweise zum nächstmöglichen Zeitpunkt” might crop up in your rental contract. This means "alternatively, on the earliest possible date" and refers to the termination date of the rental contract. It applies if the landlord didn’t add a definite end date in the agreement, for example, or if the end date was incorrect.
As long as the landlord's reasons in the fixed-term lease agreement are valid, you have no choice but to move out once your contract ends. There’s one exception though: If the reasons don't comply with the German Civil Code, you're in luck! In this case, you can stay in the apartment for as long as you want. Want to learn more about moving to Germany? Check out our blog and discover tips on saving energy in your home and how to budget for household expenses. And with the help of our moving cost calculator, figure out exactly how much money you need to put aside for the big day.
