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The rental contract in Germany

Der Mietvertrag

The rental contract sets out rent, deposit, duration and termination. German tenancy law protects tenants strongly if you know your contract well.

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Overview

The rental contract in Germany is an important and long document, with clauses set by law and clauses agreed by the two parties. Most contracts have no end date, so a landlord cannot end them without a valid reason, which is among the strongest tenant protections in Europe.

Even so, void or unfair clauses appear in contracts, and many new tenants do not know this. This guide helps you read your contract and understand your rights and duties on rent, deposit, repairs and termination before you sign and after you move in.

1

Open-ended or fixed-term contract

The normal contract has no end date and continues until one party ends it with notice.

  • A contract may only be fixed-term for a reason stated in writing, such as the landlord needing the flat for himself after a period or major demolition and renovation.
  • If the reason is not stated, the contract counts as open-ended.
  • There are also contracts for furnished or temporary rooms with their own rules.
  • Read the first page carefully: it usually contains the parties' names, the address, the start date, the basic rent, the running costs and the deposit.
2

Rent, increases and running costs

The contract sets the basic rent and the monthly payment for running costs.

  • A landlord may not raise the rent whenever he likes: he must justify the increase by comparing it with the local rent index (Mietspiegel), and it may not exceed twenty percent in three years, or fifteen percent in cities with a tight market.
  • He must give you time to consider before the increase takes effect.
  • If the contract contains stepped or index-linked rent, the increases are set in advance.
  • Every year you receive the statement of actual running costs (Betriebskostenabrechnung), which you should check, and you may ask to see the invoices.
3

Deposit, repairs and defects

The maximum deposit is three months of basic rent, which the landlord must keep in a separate interest-bearing account and return after you leave, less what he is really owed.

  • Small repairs may be charged to you up to a limit set in the contract, while large repairs are the landlord's.
  • Many clauses on cosmetic repairs (Schönheitsreparaturen), such as forcing you to paint the walls in set colours, are void according to the courts.
  • If a defect appears, such as broken heating or mould, notify the landlord in writing at once, and you have the right to reduce the rent (Mietminderung) in proportion to the defect until it is repaired.
4

Termination and notice

A tenant can always end the contract with three months' notice, which must arrive in writing and signed before the third working day of the month.

  • A landlord can only end it for a valid reason: such as personal need for the flat (Eigenbedarf), a serious breach by the tenant or two months of arrears, and his notice period grows the longer you have lived there.
  • Termination has strict formal requirements, so keep proof that you sent the letter.
  • If you receive a termination, do not leave immediately but consult a tenants' association, because many terminations are void or can be challenged.
5

Insurance and legal help

A private liability insurance (Haftpflichtversicherung) is strongly recommended because you are financially responsible for damage you cause to the flat or to neighbours, and the premium is low.

  • Household contents insurance (Hausratversicherung) helps after theft or fire.
  • Tenants' associations give legal advice for a small annual membership, which is the best investment for a new tenant.
  • Always keep a copy of the contract and of all letters, receipts, the handover report and photos, because they are your evidence in any dispute.

Step by step

  1. 1

    Read the whole contract before signing and mark every clause you do not understand.

  2. 2

    Ask for unclear clauses to be explained in writing or consult a tenants' association.

  3. 3

    Make sure the deposit is no more than three months and will be held in a separate account.

  4. 4

    Sign two copies and keep one, and record the flat's condition in a handover report.

  5. 5

    Buy private liability insurance before you move in.

  6. 6

    Send any complaint or termination in writing and keep proof of sending.

Documents checklist

  • The rental contract signed by both parties.
  • The handover report with photos.
  • The receipt for the deposit.
  • The private liability insurance policy.
  • The annual running-cost statements.

Key vocabulary

  • derMietvertrag
    rental contract
  • dieKaution
    deposit
  • dieKündigung
    termination
  • dieKündigungsfrist
    notice period
  • dieMieterhöhung
    rent increase
  • derMietspiegel
    local rent index
  • dieMietminderung
    rent reduction
  • dieBetriebskostenabrechnung
    annual running-cost statement
  • derEigenbedarf
    landlord's personal need
  • dieHaftpflichtversicherung
    private liability insurance
  • derMieterverein
    tenants' association

Useful phrases

  • Ich möchte den Vertrag in Ruhe prüfen.I would like to check the contract in peace.
  • Wie hoch ist die Kaution?How high is the deposit?
  • Die Heizung ist kaputt.The heating is broken.
  • Ich kündige den Mietvertrag zum Monatsende.I am terminating the rental contract at the end of the month.
  • Bitte bestätigen Sie den Erhalt schriftlich.Please confirm receipt in writing.
  • Ist eine Untervermietung erlaubt?Is subletting allowed?

Taking over the flat

  • Vermieter

    Hier sind die Schlüssel. Wir machen jetzt das Übergabeprotokoll.Here are the keys. We will now do the handover report.

  • Sie

    Gern. Im Bad gibt es einen Riss in der Fliese. Können wir das eintragen?Gladly. There is a crack in a tile in the bathroom. Can we note it down?

  • Vermieter

    Ja, natürlich. Ich schreibe es ins Protokoll.Yes, of course. I will write it in the report.

  • Sie

    Und die Heizung? Ich möchte die Zählerstände notieren.And the heating? I would like to note the meter readings.

  • Vermieter

    Sehr gut. Bitte unterschreiben Sie hier, und ich gebe Ihnen eine Kopie.Very good. Please sign here and I will give you a copy.

Common mistakes

  • Paying the deposit in cash without a receipt, so you have no proof of payment when you leave.
  • Withholding the whole rent for a defect without notifying the landlord in writing, when your contract may be ended for arrears.
  • Sending your notice by email only, which is not enough because it must be written and signed.

Cultural tips

  • Take dated photos of every wall and floor when you move in, which protects you from later claims.
  • Look up the rent index of your city to see whether your rent is excessive.
  • Tell the landlord in advance of any change in the number of occupants or any wish to sublet.

Official links

Check yourself

Question 1 of 5

What notice period does a tenant normally have to give?