There are many different aspects to a rental agreement, not all of which can be explained in detail here. Furthermore, contracts differ from one landlord to another. For this reason, the following only examines the most important parts of a rental agreement.

Duration/period of notice

An important part of any rental agreement is the agreements on its duration and the notice period. The contract duration stipulates the minimum period of time for which both parties are bound by the agreement. Many landlords in Magdeburg require the contract duration to be longer than six months, for example. This means that the contract must be concluded for at least six months, which includes the payment of rent instalments. On the other hand, this also means that the landlord cannot terminate the agreement before the end of the contract duration once it has been concluded - in other words, this agreement applies to all parties. There will be exceptions to this in the event of certain contraventions of the rules set out in the agreement.

Normally, the agreement will be prolonged automatically if neither of the parties involved terminates it in due time. Rental agreements therefore usually run for an unlimited period, but have a minimum agreed duration. If, as the tenant, you wish to terminate the agreement, you must send a notice of termination to the landlord before the notice period commences. The notice period is also an important part of the rental agreement.

As an example: someone rents an apartment from 1 January 2015. The contract duration is one year and the notice period is set in the agreement at three months. If the tenant wishes to move out after one year, i.e. on 1 January 2016, the landlord must receive a notice of termination (at the latest) three months before the desired end of the contract. In this example, 30 September 2015 would be the last possible date on which the tenant could give notice. If no notice of termination has been sent, or the notice of termination is received too late by the landlord, the termination may not take place on the desired date and (depending on how late the notice was received) additional months’ rent may need to be paid.

There is, however, a possible way of exiting a rental agreement early. In this case the tenant must find somebody independently who will take over the agreement (new tenant). This is completely normal in Germany. To do this, many tenants post an advertisement on a variety of online platforms on the internet. However, there is no guarantee that a new tenant will be found in good time. For this reason, it is always safer to abide by the notice periods set out in the rental agreement.

Deposit

The majority of landlords in Germany demand payment of a deposit. Normally, the deposit amounts to two or three months’ rent. The deposit is paid in to a special account by the landlord. When the apartment is returned to the landlord at the end of the tenancy, the landlord checks that it is in a good condition and that no major damage has been caused by the tenant. If everything is in order, the deposit is returned to the tenant in full.

Paying the rent

There are two possible ways of calculating the monthly rent.

Fixed price for the room or apartment

In this mode, a fixed sum (for example 250 EUR) is charged each month. This sum already includes all costs for electricity, water, heating etc. Costs for the telephone / Internet and the German broadcast media user’s fees are, however, normally not included in this amount and must be paid separately.  This payment model is, for example, customary in the rooms of student halls of residence, and also in some accommodation offered especially for students on the private rental market.

Flexible price consisting of basic rent (“Kaltmiete”) and additional costs (“Warmmiete”)

This model of payment is very widespread in Germany and applies to the majority of agreements on the private rental market. With this model, the monthly costs are divided into two categories: The (fixed) basic rent and (flexible) amount for additional costs (water, heat etc.). Together these make up the total rent - i.e. the amount that the tenant must pay the landlord for the apartment. Advertisements for rental apartments where this model of payment is used state the basic rent and (expected) total rent.

The flexible part of the rent depends on the actual consumption of water and heat and other consumables by the tenant. If an amount for the total rent is indicated in the advert, this will be based on estimates or on the amounts paid by the previous tenant. Depending on the tenant’s own behaviour, the actual amount may differ greatly from the amounts stated in the advertisement. If the tenant’s consumption behaviour is normal, the amount stated should be about right. The actual consumption will be measured later by a company. The values will be established when the tenant moves in to and out of the apartment. If you remain in the apartment for a longer period, normally the metre readings for water and heat consumption are taken once a year. If you are very careful with your water consumption or control of the heating, it may be possible that you will receive a refund from the landlord after the actual consumption has been invoiced. Conversely, it is also possible that you will have to pay more after one year (additional payment) if you have consumed more than in the previous year.

The second invoicing model may sound more complicated than the first, but it is also very fair, as you only pay for the actual costs of your own consumption.