Getting Started as a Landlord
Many private landlords literally stumble into their role: an inherited apartment in Düsseldorf, the old condominium after moving to Hamburg, or an in-law apartment in their own house. Suddenly it's time to: draft a rental contract, find tenants, calculate utility costs. Sounds simple at first, but in practice it's full of pitfalls. In short: those who know the basics save time, money, and stress.
Creating Legally Sound Rental Contracts
The rental contract is the foundation (§ 535 German Civil Code). It must clearly state the base rent, utility cost arrangements, deposit, and special agreements (e.g., pets, parking space). Verbal agreements are possible, but hardly provable in case of disputes.
📌 Legal Precedent Example
Federal Court of Justice, VIII ZR 185/14: Fixed deadlines for cosmetic repairs are invalid.
💡 Practical Tip
Use current templates (e.g., from Haus & Grund property association). Old standard contracts often contain invalid clauses.
Checking Tenant Creditworthiness
Nothing is worse than when rent payments stop. That's why credit reports, salary statements, and a rent debt clearance certificate belong in every application file.
Checklist: Credit Check
- Credit report obtained
- Salary statements (3 months) reviewed
- Rent debt clearance certificate available
- Personal impression positive
Keeping Utility Costs Under Control
Utility costs must be calculated annually according to § 556 German Civil Code. Allocatable costs include heating, water, garbage, janitor services. Non-allocatable costs include repairs or administrative costs.
Table: Allocatable vs. Non-Allocatable Costs
Allocatable: Heating, hot water, cold water, garbage collection, cleaning, property tax, insurance
Non-Allocatable: Administrative costs, maintenance reserves, repairs, property management fees
Understanding Rights and Obligations
The landlord must provide the apartment in contractual condition (§ 535 German Civil Code). The tenant must pay rent and treat the apartment with care. Terminations are only possible under strict conditions (§ 573 German Civil Code, e.g., owner's personal use).
Documentation is Everything
Many disputes arise from missing documents. Utility cost receipts, handover protocols, and repair bills should be properly archived – digital saves space and time.
Conclusion
Starting as a landlord isn't rocket science. But without knowledge of contracts, creditworthiness, utility costs, and documentation, it quickly becomes expensive. Those who create a clear structure early on lay the foundation for stress-free renting.