Stress-free apartment handover for landlords, real estate agents, and property managers

The apartment handover when moving in or moving out is a big step for you and your tenants. But how do you make the handover stress-free and smooth?

Find out in this article what you as a landlord, broker, or property manager specifically need to look out for during the apartment handover.

When does the apartment handover take place?

An apartment handover takes place both when moving in and moving out. A distinction is therefore made between handing over the apartment upon moving in and handing it over upon moving out.

At the start of the tenancy, you, as the landlord, broker, or property manager, hand over the apartment to the tenant. When moving out, the tenants return the apartment back to you.

The handover appointment usually takes place on the first or last day of the tenancy period, unless you and the tenant agree on a different time.

Thorough apartment handover made easy

Make sure to inspect the apartment thoroughly during the handover and to prepare an apartment handover protocol. In it, you record the condition of the apartment and any defects.

Choose an appointment during the day, as the condition can best be assessed in daylight. Make sure that the rooms are completely empty. This way, you can spot every corner and potential damage immediately.

Apartment handover: What to consider as a landlord, broker, or property manager?

During the apartment handover, as a landlord, broker, or property manager, you must pay attention to a few details so that the tenant changeover goes as planned.

Arranging a preliminary appointment

During a preliminary appointment, the landlord and tenant discuss the details of the handover. Not all landlords opt for a preliminary appointment. Nevertheless, it is a suitable opportunity to clarify questions and to-dos.

A preliminary appointment ensures that you and the tenants know what to expect. Clarify which renovations are necessary and which defects must be resolved.

You avoid surprises and conflicts on the actual handover day. As a result, the preliminary appointment takes some of the pressure off the apartment handover and relieves landlords and tenants when moving in and out.

Recording the condition of the apartment in the handover protocol

On the day of the apartment handover, you walk through all the rooms with the tenant and check the condition of the apartment. The tenant can also be represented by a third party with a power of attorney.

Prepare well to save time. Document defects with your smartphone or tablet.

All rooms should be broom-clean. If you discover damage or defects during the walk-through, discuss them with the tenant. If the previous or subsequent tenant is present, clarify together who will take on pending work or whether a tradesperson is needed. Note all agreements in the apartment handover protocol.

At the end of the apartment handover, the tenant and landlord sign the completed apartment handover protocol. Under German tenancy law, it is now considered binding.

Alternative to the analog apartment handover: Logging the apartment digitally

If defects are not recorded in the protocol, it will be difficult to pass the costs on to the tenant later. However, if the tenant deliberately conceals defects from the landlord, you can still hold them accountable after the apartment handover.

The inspection becomes less stressful and clearer with a digital apartment handover. Use your smartphone or tablet for this.

The advantages:

• All meter readings are up to date and easy to read.

• Photos of defects and the condition of the apartment can be easily included.

• The apartment handover protocol includes digital signatures and can be stored centrally.

• You can easily email the protocol to the tenants as a PDF.

• You save time and nerves during the apartment handover.
  The digital inspection is part of digital leasing. This is a concept where landlords, brokers, and owners rent out more efficiently, economically, and profitably using digital technologies.

What is proper condition?

During the apartment handover upon moving out, the rule is: The tenant must hand over the apartment in proper condition (Section 546 BGB).

Major defects and damage caused by negligence must be rectified. This includes, for example, a cracked floor tile because something was dropped, or water damage to the parquet floor from a knocked-over vase.

However, tenants do not have to rectify normal wear and tear such as scratches in the laminate or limescale deposits in the bathtub.

Proper condition also means that the tenant has removed all furniture and dismantled any installations and alterations, such as fitted kitchens, balcony cladding, or wall openings, returning them to their original condition.

How does the handover of the apartment work when moving out?

During the apartment handover upon moving out, you check the tenant's broom-clean apartment. Create a protocol that documents the condition of the rooms. Note defects and read the meter readings.

Do not forget to check the basement, attic, terrace, or balcony. The tenant hands over all keys to you. Take notes and photos to create the protocol.

Both parties sign the protocol. If everything is in order, you return the security deposit. When moving in, you hand over the keys to the new tenant and receive the deposit. A preliminary inspection is not always necessary here.

How does the handover of the apartment work when moving in?

The handover of the rental property when moving in does not differ much from the handover when moving out.

Yet there are still some differences:

• When a new tenant moves in, you hand over the keys and document the apartment in the protocol.

• Read the meter readings and write them down.

• The tenant signs the protocol and pays the deposit.

With that, the apartment handover is complete and the tenancy begins.

The handover of keys

After you have inspected the apartment, the handover of the keys follows. Hand over all keys to the tenant or take them back. It is important to record the number and description of the keys in the apartment handover protocol.

Do not forget to also note spare keys and any available access cards. This way, you maintain an overview and avoid misunderstandings. This documentation protects both sides.

Ensure that all parties sign the protocol directly during the handover. This creates clarity and security for the future. Use the opportunity to clarify any questions. A thorough handover of keys is the final step towards a stress-free apartment handover.

What tenants must renovate when moving out

The tenant may wear down and even deteriorate the rented property "through use in conformity with the contract" (Section 538 BGB), this means tenants do not have to pay for normal signs of wear and tear.

However, if the tenancy agreement contains valid clauses regarding minor repairs and cosmetic repairs, the tenant is obligated to carry them out.

The condition upon moving in also plays a role: If the apartment was not renovated upon moving in, it does not have to be renovated upon moving out either. It is a different story if you, as the landlord, paid the tenant compensation for a renovation.

In principle, the following applies: If the property is not in need of renovation, tenants cannot be forced to carry out a complete renovation, regardless of what is stated in the rental agreement (BGH 18.03.2015, ref.: VIII ZR 185/14).

Can you refuse to take back the rented apartment if the tenant has not carried out the cosmetic repairs?

As a landlord, you cannot refuse to take back the apartment if the agreed cosmetic repairs are lacking. However, set a deadline for rectification. By this date, the tenant must complete the work themselves or hire a professional.

The tenant should be able to provide you with invoices for paint, materials, or the specialist company. If the tenant refuses or does not meet the deadline, you can hire a replacement company. You may deduct the costs from the deposit or bill the tenant for them.

What you should know about the rental deposit

Once you have properly inspected and accepted the apartment, the rental deposit is immediately due along with interest upon the apartment handover. As a landlord, broker, or property manager, however, you can withhold the deposit in part or in full in certain cases.

This includes, for example:

• if the utility bill statement is still pending

• if renovation work was not carried out as contractually agreed

Due date of the rental deposit

When moving in, the rental deposit is generally due upon conclusion of the rental agreement. Unless you have made a different agreement.

One option is handing over the deposit in cash during the apartment handover. This flexibility can be advantageous for both parties.

It is important that you record all agreements clearly and in writing. This is how you avoid misunderstandings and disputes.

Who opens the rental deposit account?

The tenant can open the rental deposit account themselves. With a declaration of pledge to the landlord, the landlord has access to it at any time in the event of rental debts.

If you, as the landlord, set up the deposit account, you must keep it separate from your personal assets. The interest belongs to the tenant.

Conclusion: Stress-free apartment handover for landlords, brokers, and property managers

The apartment handover is a significant step for you and your tenants. With good preparation, it will run smoothly and without stress.

Checklist:

• A preliminary appointment clarifies open questions and relieves both parties.

• Choose an appointment during the day and prepare a detailed handover protocol.

• Document all defects and record agreements in writing.

• Take advantage of digital tools for an efficient handover. A thorough handover of keys and clear rules regarding the rental deposit provide security.

• Transparent communication and accurate documentation create a good tenancy relationship and make the handover pleasant and straightforward for everyone involved.