5 Most Common Mistakes of Private Landlords

Practical Tips

Key Points

  • No credit check = risk of rental defaults
  • Late or faulty utility cost statements
  • Old, invalid contract templates
  • Missing documentation during handover & damages
  • No reserves for maintenance

Mistake 1: Credit Not Checked

Many landlords are happy when they "quickly find a nice tenant." But without credit report and salary statements, that's like flying blind. A landlord in Nuremberg had to experience that his tenant didn't pay as early as the second monthly rent – in the end, outstanding claims of over €6,000 piled up.

πŸ’‘ Practical Tip

Always demand credit report, income statements, and rent debt clearance certificate.

Mistake 2: Utility Costs Billed Incorrectly or Too Late

According to Β§ 556 BGB, the statement must be available at the latest 12 months after the end of the billing period. Anyone who misses the deadline loses claims. A classic case: Landlord in Hamburg billed too late, €1,200 in additional claims were lost.

πŸ“Œ Legal Precedent Example

Federal Court of Justice, VIII ZR 249/15: Late billing = no additional claims possible anymore.

Mistake 3: Outdated Contract Clauses

Old rental contracts often contain rigid cosmetic repair clauses or blanket utility cost regulations – these are regularly invalid today.

Mistake 4: Missing Documentation

Without handover protocol, it's almost impossible to prove damages upon move-out. Many landlords underestimate this formality.

Mistake 5: No Reserves

Repairs will come for sure – roof, heating, windows. Anyone who doesn't build reserves has to refinance expensively.

Checklist: Building Reserves

  • Set aside €1–2 per sqm/month
  • Use separate account
  • Factor in long-term renovations (roof, heating)

Conclusion

The most common mistakes are avoidable – if landlords take the basics seriously. Anyone who checks creditworthiness, bills cleanly, uses current contracts, documents properly, and builds reserves saves themselves the biggest problems.