Why a Clean Contract is Crucial
Many private landlords underestimate the importance of the rental contract. Especially when only one or two apartments are rented, people quickly resort to a free template from the internet. A landlord from Hanover told us he had used the same form for years until he realized that important clauses had become invalid. Result: His tenant could simply ignore the renovation obligation – and the landlord was stuck with the costs. In short: A rental contract is not a side document, but the foundation for all rights and obligations.
Contract Types: Unlimited, Limited, Graduated Rent
The standard in Germany is the unlimited rental contract. Limitations are only allowed with factual reason (§ 575 BGB), such as personal use or planned renovations. Many private landlords mistakenly believe they can simply limit "after two years" – this is invalid. Graduated rents and index rents are also possible (§ 557a, § 557b BGB), but must be clearly regulated in the contract.
Typical Sources of Error in Clauses
Cosmetic repair and small repair clauses often lead to disputes. The Federal Court of Justice has repeatedly decided that rigid deadlines for renovations are invalid. Flat-rate allocations of costs without clear regulation can also be invalid.
📌 Legal Precedent Example
Federal Court of Justice, judgment of March 18, 2015 – VIII ZR 185/14: Clauses with rigid renovation deadlines are invalid.
Deposit and Utility Costs
The deposit may not exceed three net cold rents (§ 551 BGB) and must be invested with interest separately from the landlord's assets. Anyone who simply transfers the money to their private account risks repayment problems. Utility costs must be clearly named in the contract – blanket formulations ("all utility costs") are not sufficient.
💡 Practical Tip
List all eligible costs specifically and use verified contract templates. Anyone who doesn't properly regulate utility costs in the contract often cannot pass them on to the tenant later.
Written Form: Obligation or Option?
Purely legally, a rental contract is also valid orally. But without written form, conflicts are pre-programmed: Which utility costs were meant? What notice period applies? In practice, therefore, written work should always be done – regardless of whether you only rent one granny flat or several properties.
Checklist: What Landlords Should Consider in Rental Contracts
- Contract type (unlimited, limited, graduated rent, index rent) clearly defined
- Deposit (max. 3 monthly rents) correctly regulated
- Utility costs specifically listed
- Cosmetic repairs and small repairs legally formulated
- Written form maintained
- Rent adjustment clauses current and legally compliant
Conclusion
A legally secure rental contract protects landlords from unpleasant surprises. Old templates are risky because case law is constantly changing. Anyone who uses current templates, clearly names utility costs, and avoids invalid clauses creates a stable basis for the rental relationship – and saves expensive legal disputes.