Five Things You Need To Know to Avoid Landlord Problems in Germany
by Elisa Stella of ELP-Expat – Expatriate Support
Many of my clients in Germany come to me with troubling issues related to their rental or lease agreement. They are exhausted and frustrated because of tensions and troubles with their landlord or property manager. Some landlords (Vermieter) may be eager to take advantage of foreign tenants (Mieter) who inadvertently ignore German rules and regulations, but most such problems can be avoided by possessing essential information and acting on it.
An apartment house in Berlin-Mitte. Built in 1864, it is an example of a nicely renovated Wohnhaus. PHOTO: Jörg Zägel (Wikimedia Commons)
Awareness of the following points up front means you can avoid problems in the first place, and reach a fair accommodation if problems do arise. You will have a smoother relationship with your landlord, fewer misunderstandings, and save yourself time, money, and trouble by paying attention to these five factors:
1. Schufa (credit rating)
This is the document that proves that you’re a solvent, creditworthy tenant. It’s like a credit score in the US. The paradox for foreigners is that Schufa certification can be issued only after you register your residence in Germany (Anmeldung). If your landlord is flexible enough (not all are), you can prove yourself a financially sound tenant by showing your work contract and a reference letter from your employer. Unfortunately, even if you have a good credit rating in your home country, it doesn’t transfer to Schufa. The charge for a normal Schufa credit report (“BonitätsAuskunft”) is 30 euros.
One option for new expats in larger cities, suggested by our friends at Settle in Berlin, is to try a flat share (Wohngemeinschaft, WG) and register there until you can find your own place. Also, not all landlords require Schufa, so you can try that, but you will usually need Schufa certification sooner or later.
Schufa has not been free of criticism. It holds information on about 70 million Germans, almost anyone over the age of 18. OpenSCHUFA and other organizations claim that Schufa is not as transparent as it should be, and that it makes too many errors in its reports. But as a renter and an average person in Germany, there is little you can do about that. Just know what Schufa is and what it does. Try not to depart from Germany with a black mark from Schufa. Should you later decide to return, it will follow you forever. By the way, Austria (KSV1870) and Switzerland (ZEK) have similar credit scoring agencies, but they are not exactly the same, and there seems to be no coordination among the three agencies.
2. Übergabe (handover)
This is the one essential step in the rental process that too many tenants overlook or underestimate. The handover occurs at the moment you, the tenant, get the keys to the property. From that moment on, you are responsible for anything that happens in the flat/house. Any changes (damage, painting, wear and tear) will be noted when you vacate the premises at the end of the rental contract. Any and all differences – a scratch on a tile, a stain on the floor – will be noted and charged to the tenant.
Some landlords take advantage of this situation to charge tenants more than necessary. This is why both the initial and the final handover have to be carefully documented, especially when you move in. You need good records. Write down every little detail and take pictures and/or video when you first move in. A dripping water faucet, broken or misaligned door handles, chipped paint, etc. should be noted/pictured. The resulting dated handover document should be signed by you and the landlord. The initial handover document sets the benchmark for any damages you may be charged for when you leave the domicile. In the final handover you can also specify when you will get your deposit back, to which bank account the landlord shall transfer it, and the amount of any deductions, if any, from the deposit you paid at the beginning. By having good documentation you can avoid being overcharged when you move out. If your rental/lease agreement calls for it, you may also be required to repaint the interior walls when you leave. Again, make sure you know what is in your agreement and what your legal obligations are.
3. Nebenkostenabrechnung (ancillary costs bill)
Before you sign on the dotted line you should carefully check your rental contract for any ancillary costs that are included (warm) or not included (kalt). In most cases, electricity is not included and you have to register at the local provider and pay your own bill. Water is usually included and it depends on the number of people living in the flat. Other ancillary costs include heating, garbage disposal, building insurance, electricity in stairways and common areas, and janitorial service (if there’s one in the building).
In your contract you see how much of the monthly rental goes to ancillary costs, but this is just an estimate. Every year the landlord must provide you with the detailed ancillary costs bill. If it’s lower than expected, you’ll get some money back – but if the ancillary costs exceed the estimation, you have to pay additional money. Please make sure that your landlord gives you the detailed annual bill because you need it for your income tax deductions.
4. Kündigung (cancellation)
A 1918 Mietvertrag for a villa in Radebeul. It calls for an annual rent of 900 marks paid in quarterly installments of 225 marks. PHOTO: Wikimedia Commons
The standard notice period in Germany is three months (90 days) in advance, but the parties can agree on a different cancellation period. For instance, some expats prefer having only a 30-day/one-month notice period. For the notice period, be aware that a German lease agreement may state “ab Monatsende” (from the end of the month). This means that the three months’ notice period starts at the end of the month in which the tenant gives notice. For instance, if you cancel the contract on May 18th, the three months’ notice will start on June 1st and you’ll leave the apartment at the end of August.
Also watch out for the so-called Kündigungssperre (minimum notice date) in your rental contract! This clause sets a date before which you can’t cancel the contract and, if you leave the flat before that date, you still owe rent up to that date. For instance, if your contract says you can’t vacate your place before 1 November, and you leave Germany on 30 August, you still owe rent for September and October. Even if you find someone new to take the flat with your same contract, the landlord is free to accept this replacement or not. (Note that the 1918 contract pictured on this page contains a Kündigungssperre.)
5. Kaution (deposit)
A normal deposit is usually equal to three months “cold rent” (Kaltmiete, excluding ancillary costs). It has to be paid in advance, and is supposed to cover any damages caused by tenants or any unpaid bills when you leave the flat or house. Theoretically, it can be paid in three installments and is held in a separate bank account. In real life this hardly ever happens because of two reasons: (1) The rental market in Germany is so tight that landlords can demand that tenants pay the total deposit up front, and (2) the interest rate on bank savings in Germany is zero (0%).
One of the main issues with the deposit is the reimbursement at the end of the rental contract. On the one hand, landlords try to keep it, assuming alleged deficiencies. (That’s why an accurate handover with pictures is so important at the beginning and at the end.) On the other hand, they are legally allowed to keep the deposit up to six months after the end of the rental contract. (Less than that if the rental contract period was shorter.) If you agree to have the reimbursement earlier, make sure the due date is written on the handover certificate at the end, together with the bank account to transfer it to and the signature of both tenant and landlord. Note: The landlord is only allowed to retain a small portion of the ancillary costs after the statement of those costs.
The Bottom Line
The most important point found in each of the five items above: Have everything in writing! No informal verbal agreements. No assumptions about anything. Make it all official and on the record. Know your contract! Know the law! Have photographic and documentary proof of anything related to your rental. If you have an assertive, self-confident attitude, backed up with facts and documentation, you will prevail over any landlord who might try to take advantage of you.
Yes, it is more work and hassle, but believe me, you will thank me and yourself if you follow this advice. Good luck!
– Elisa
Related: When it’s time to leave: Preparing to exit Germany – A GW blog post by Sarah E that includes rental matters
WEB: Wohnung mieten als Ausländer – (Renting a flat as a foreigner) from mietrecht.org (in German)
WEB: SCHUFA – Information from the official SCHUFA website in English
Also see: Tax Help for Expats Living in Germany by Elisa
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