Rental agreement
Short definition
The tenancy agreement is a legally binding contract between landlord and tenant regarding the provision of a property in exchange for payment of rent. In particular, it regulates the rental price, use, duration, as well as the rights and obligations of both parties.
What needs to be regulated in a tenancy agreement?
A tenancy agreement must include the rent, ancillary costs, contract duration, and use of the apartment. Often, additional regulations regarding rental deposits, notice periods, and cosmetic repairs are included.
When is a tenancy agreement legally binding?
In principle, a tenancy agreement is also legally binding orally, but in practice, it is concluded in writing in order to record agreements in a clearly verifiable manner.
Practical context
In practice, many problems arise not from the contract itself, but from unclear or incomplete provisions. Especially with terminations, cosmetic repairs, or ancillary costs, it becomes evident how important clear agreements are in order to avoid later conflicts.
Example
Unclear provisions regarding cosmetic repairs often lead to tenants refusing renovations and landlords being unable to enforce claims.
Further links
→ Glossary article: Termination of tenancy agreement
→ Blog article: Terminating a tenancy agreement as a landlord: Requirements and deadlines
→ Blog article: Digital signature in the tenancy agreement: Benefits and basics
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More terms
Full glossary
Additional costs
Ancillary costs (Nebenkosten) are ongoing operating expenses incurred by the landlord from running a property, which can be passed on to the tenant in addition to the base rent, provided this is agreed upon in the lease agreement.
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cosmetic repairs
Cosmetic repairs are measures taken to eliminate signs of wear and tear, such as painting or wallpapering.
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Termination of tenancy agreement
The termination of a lease agreement ends the tenancy and is subject to statutory notice periods as well as formal requirements.
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