Rental process from applicant to lease agreement: the seven steps in the right order

Why does the sequence matter in letting?

The building blocks are well known: self-disclosure, credit check, draft contract, signature. It gets difficult at the transition points. The contract goes out before the check is completed. The rent control disclosure is only sent with the contract—too late to properly document it before signature. The contract is modified again after approval, and nobody knows which version was approved anymore.

The individual topics are well described elsewhere. This article places them in order and shows which step should come before which.

What does the process look like at a glance?

The table is a suggestion for the sequence. Which checks you make mandatory and the order in which they run is determined by your company.

Step 1: Which self-disclosure details belong in which phase?

In its Guidance V2.0 from January 2026, the German Data Protection Conference (DSK) assigns the permissible details to up to three points in time during the process and includes a sample questionnaire. The guidance is an interpretation by supervisory authorities, not a statute, and its enumeration is not exhaustive. It does not consider consents in self-disclosure forms to be the appropriate instrument.

Proof of income. The amount of income may be requested in Phase B. The guidance only provides for proof of it after the selection of an applicant, immediately before signing the contract: copy of pay slip or salary statement, bank statement, or income tax assessment, with non-essential information redacted. Even when asking about the income, you may announce that proof will follow after selection.

Creditworthiness. The applicant can provide a credit report that they requested themselves from a credit agency, containing only the information necessary for a tenancy. When you are permitted to query this yourself is explained in the article Credit checks in tenant selection.

ID card. The guidance considers making a copy of an ID card during the viewing appointment to be unnecessary and therefore impermissible, and the sample questionnaire also does not provide for an ID copy in later phases. If the viewing is conducted by the prospective tenants alone, you may, according to the guidance, verify the details against the presented identity card and document the check.

In EverReal, you determine for each template which field is requested in the step before the viewing and which in the step after the viewing, as a mandatory field, optional, or not at all. Only first name, last name, and email are fixed. Align your templates with the phases of the guidance together with your data protection officer.

Step 2: How are applicant selection and approval handled?

If several prospective tenants have chosen the same apartment, the landlord makes the decision for one of them. This is also how the guidance describes it, citing this decision as the point in time for further information. Only now do income and credit verifications follow (Phase C). The file should show who made the decision and when. Approval of the applicant by an authorized person is the first of the checks a company can establish. How to set up approvals is described in the article Approvals before the tenancy agreement.

For unsuccessful applicants, the rule is: data must be deleted once it is no longer needed for the intended purpose. If claims under the General Equal Treatment Act (AGG) are a consideration, the guidance regularly mentions a maximum of six months. Decide within your organization when and where the deletion deadline is recorded in the process.

Step 3: Which checks precede the contract?

In practice, sanctions screening and credit checks come before the contract. Who must perform checks and what is screened is explained in the article Sanctions lists in property management. Which credit details are permissible is set out in the article on Credit checks in tenant selection. Neither is repeated here.

What matters most for the sequence is: the checks are completed before the contract is created. Results that are only added after the signature are no longer a prerequisite, but post-documentation. From the Pro edition onward, the company can configure up to four checks in EverReal; more on this below.

Step 4: How are draft contracts and contract approvals created?

With the acceptance of the applicant, the draft contract is created. This step is where future ambiguities often begin: which version was approved, and which was sent? Decide within your organization how you record on the file which version an authorized person approved prior to signing. EverReal saves changes to an existing contract as a new version.

Step 5: When must the rent brake disclosure be provided?

Anyone demanding rent based on an exception in an area subject to the rent brake must provide information to the tenant beforehand. Under Section 556g (1a) BGB, the landlord is obligated to provide unsolicited information to the tenant before the tenant makes their contractual declaration, insofar as the permissibility of the rent is based on Section 556e or Section 556f BGB, such as regarding the amount of the previous rent. The disclosure requires text form (Section 556g (4) BGB): a readable declaration on a durable medium naming the person making the declaration (Section 126b BGB).

If the disclosure is missing or was not provided in the prescribed form (text form), the landlord cannot initially rely on the permissible rent under Section 556e or Section 556f pursuant to Section 556g (1a) BGB. The legal consequences are explained in Rent Brake 2026.

For the process, this means: the disclosure is the landlord's responsibility. It is not a task for the tenant, and it is not satisfied by the tenant confirming something later. Decide within your organization who sends it and at what point in the process—for example, before sending the contract for signature. The dispatch date should be logged on the file.

Step 6: What does the tenant confirm prior to signature?

In EverReal, the tenant opens the link to the contract and provides the necessary confirmations—depending on the template, for example regarding the viewing and, if the contract uses an exception, regarding the rent brake. Only then are they forwarded to sign. The tenant's confirmation is an element in the process. It does not replace the disclosure under Section 556g BGB; the landlord's duty remains.

Step 7: How does signing work, AES or QES?

The signature comes at the end, not in the middle. After the confirmations, EverReal forwards the tenant to the signature step, either in EverReal itself (advanced electronic signature, AES) or via Scrive (qualified electronic signature, QES). The signature level does not alter the preceding confirmations.

Which level a contract requires depends on whether the law demands written form for it. If written form is to be replaced by electronic form, the parties must each provide an identical document with their qualified electronic signature pursuant to Section 126a BGB (paras. 1 and 2). When this is the case is answered in the article Digital signatures in tenancy agreements: when QES is mandatory. Why digital signatures are worthwhile in daily business is described in Advantages of digital signatures in tenancy agreements. Neither is repeated here.

What happens if the contract is modified after being sent?

A modification after sending is a typical point where the sequence breaks down. An example without claiming to depict a specific company: the contract has been sent, but the tenant has not yet submitted the confirmations. Then it is noticed that the version is incorrect. The contract is withdrawn and modified. The second version no longer uses the exception to the rent brake.

In EverReal, the confirmations are requested again after a withdrawal and modification. If the second version waives the rent brake exception, that confirmation is no longer requested. Decide within your organization whether a modified version must be re-approved and who decides this.

How does EverReal guide you through this sequence?

EverReal keeps the entire process from initial inquiry to signed contract—and upon request through to handover—largely in one place. Tasks can be assigned to a property, a listing, or an applicant, optionally with a due date and priority. Starting with the Pro edition, the company defines which of up to four checks must have taken place: approval of the applicant by an authorized person, sanctions screening, credit check via SCHUFA (a separate SCHUFA account is required for this), and approval of the tenancy agreement prior to signing. The contract can only be started or sent once the configured checks are complete. These toggles are turned off by default. The company decides which ones to enable.

Prior to signing, the tenant provides the necessary confirmations and is only then directed to the signature step. If a contract is withdrawn and modified, the confirmations are requested again. EverReal creates changes to an existing contract as a new version. Find out more about the features on the Applicant Management and Contract Execution pages. How a guided process is structured overall is described in the cornerstone article Guided Workflows in Property Management.

How do you establish the sequence in your organization? Four steps

Write down the sequence. Record the seven steps on a single page and remove or add whatever works differently in your organization. Anyone handling the case will then immediately see what comes next.

Assign each question to a phase. Assign each question and each document in your form to one of the three phases: viewing, prospect's decision, selection of the applicant. Remove anything unnecessary. The sample questionnaire does not provide for an ID copy in any phase.

Give the disclosure a fixed place. Decide within your organization who sends the rent brake disclosure and whether it takes place prior to sending the contract for signature.

Define a rule for modifications. Decide within your organization what happens if a contract is changed after approval or after dispatch: new approval yes or no, new disclosure yes or no.

Conclusion

The sequence is critical, and it belongs on the file. Anyone who puts documents, checks, contract approval, disclosure, confirmations, and signature into a fixed order and documents it on the file has everything ready before signing, and the path taken remains transparent. The rent brake disclosure remains an obligation of the landlord that must be completed prior to signature.

The fillable checklist helps record checks, responsibilities, and storage locations for your own organization.

How a guided process is structured from first contact to handover is shown in the cornerstone article Guided Workflows in Property Management. If you would like to walk through the process for your property management together: Book a consultation.

We do not provide legal advice. Property managers are advised to clarify specific legal questions with a specialized attorney or their professional association (VDIV, IVD).

Sources

• Section 556g BGB

• Section 126a BGB

• Section 126b BGB

• Data Protection Conference, Guidance on obtaining self-disclosures from prospective tenants, Version 2.0, January 2026

• Data Protection Conference, Annex Sample Questionnaire, as of January 2026

• EverReal product status on form templates, checks, and confirmations prior to signature, as of 19.10.2026 (internally confirmed by product management).

FAQ

In what sequence does letting proceed from applicant to tenancy agreement?

Seven steps are standard: phased self-disclosure, selection and approval of the applicant, checks, draft contract with approval, rent brake disclosure, tenant confirmations, and signature. The disclosure and confirmations must occur before signing. Each company decides for itself which checks it makes mandatory.

Where in the process does the rent brake disclosure belong?

Before sending the contract for signature, at the latest before the tenant makes their contractual declaration, and in text form (Section 556g (1a) and (4) BGB). The disclosure is the landlord's obligation; a tenant confirmation does not replace it. Exceptions and legal consequences are explained in the article Rent Brake 2026.

May I request a copy of an ID card?

Not at the viewing appointment: The Data Protection Conference considers creating a copy of an ID card to be unnecessary and therefore impermissible, and its sample questionnaire also does not provide for an ID copy in later phases. If the viewing takes place with the prospective tenants alone, you may, according to the guidance, verify the details against the presented ID card and document the check. The guidance is an interpretation by the supervisory authorities, not a statute; clarify individual questions with your data protection officer.

What must the tenant confirm in EverReal prior to signature?

The tenant opens the link to the contract, provides the necessary confirmations—depending on the template, for example regarding the viewing and, if the contract uses an exception, regarding the rent brake—and is only then forwarded to sign. Signing takes place in EverReal (AES) or with Scrive (QES). If the contract is withdrawn and modified, the confirmations are requested again.

Which solution supports the workflow from applicant to tenancy agreement?

A suitable solution manages the application, checks, contract, and signature as a single process. In EverReal, starting with the Pro edition, the company defines which of up to four checks must have occurred, and the contract can only be started or sent once these are complete. These toggles are turned off by default.