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

The apartment handover when moving in or out is a major step for you and your tenants. But how do you ensure the handover goes smoothly and stress-free?

In this article, you will learn what you as a landlord, broker, or property manager specifically need to pay attention to during the apartment handover.

When does the apartment handover take place?

An apartment handover takes place both upon move-in and move-out. A distinction is therefore made between the handover of the apartment upon move-in and the handover upon move-out.

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

The handover appointment usually takes place on the first or last day of the rental 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 see every corner and any 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 need to pay attention to several details so that the tenant changeover proceeds 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 need to be rectified.

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 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 notice any 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 care of pending work or whether a tradesperson is required. Note all agreements in the apartment handover protocol.

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

Alternative to the analog apartment handover: Digitally documenting the apartment

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

The inspection becomes more stress-free and clearly arranged with a digital apartment handover. Use your smartphone or tablet for this.

The advantages:

• All meter readings are up-to-date and easily legible.

• 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 stress during the apartment handover.
  The digital inspection is part of digital renting. This is a concept where landlords, brokers, and property owners rent out more efficiently, economically, and profitably using digital technologies.

What is proper condition?

For the apartment handover upon move-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 caused by an overturned 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 includes the tenant removing all furniture and dismantling or returning fixtures and alterations—such as fitted kitchens, balcony cladding, or wall openings—to their original condition.

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

During the apartment handover upon move-out, you check the tenant's broom-clean apartment. Create a protocol documenting 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 prepare the protocol.

Both parties sign the protocol. If everything is in order, you return the deposit. Upon move-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 upon move-in does not differ significantly from the handover during move-out.

However, there are still a few 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.

This completes the apartment handover and the tenancy begins.

The handover of the 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 existing access cards. This helps you keep track and avoid misunderstandings. This documentation protects both parties.

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

What tenants must renovate when moving out

The tenant may wear down the rented property "through use in accordance with the contract" (Section 538 BGB) and thereby also degrade it—meaning, 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 obliged to carry them out.

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

As a rule: If the property is not in need of renovation, tenants cannot be forced to carry out a complete renovation—regardless of what the tenancy agreement states (Federal Court of Justice [BGH] 18.03.2015, Case No.: VIII ZR 185/14).

Can you refuse to take back the rental 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 have not been carried out. 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 contractor. If the tenant refuses or fails to meet the deadline, hire a substitute company. You may deduct the costs from the deposit or invoice them to the tenant.

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 at the apartment handover. However, as a landlord, broker, or property manager, you can withhold the deposit partially or entirely in certain cases.

This includes, for example:

• if the operating cost statement is still pending

• if renovation work was not carried out as contractually agreed

Due date of the rental deposit

Upon move-in, the rental deposit is generally due upon conclusion of the tenancy agreement. Unless you have made a different agreement.

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

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

Who opens the rental deposit account?

The rental deposit account can be opened by the tenant themselves. With a pledge agreement provided to the landlord, the landlord has access to it at any time in the event of rent arrears.

If you set up the deposit account as a landlord, 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 proper 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 ensure security.

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