Guide for landlords

Termination of a tenancy agreement without notice is only permitted in exceptional cases. Under German tenancy law, tenants enjoy strong protection against termination, but in the event of serious breaches of contract, a landlord may also terminate a tenancy agreement without notice (Section 543 BGB). This means that the tenancy is terminated immediately without observing the regular notice period. Important: Termination without notice always requires good cause. Legally recognized reasons include, in particular, significant default in payment by the tenant, continued disturbance of the peace in the building or deliberate serious damage to property. Unauthorized transfer of use (illegal subletting) or criminal activities in the apartment are also possible. In the following, we explain the most important reasons and what landlords need to bear in mind.

A strict ban on the conversion of rental apartments has been in force in Berlin since 2021. This is intended to prevent rental apartments from being divided up and sold as condominiums en masse – especially in tight housing markets. The basis for this is Section 250 of the German Building Code (BauGB), introduced by the Building Land Mobilization Act.

Service charges – often referred to as operating costs – are all ongoing costs incurred by the owner as a result of owning the property and operating the building. The landlord can pass many of these on to the tenants if this is agreed in the tenancy agreement.

Determining the right rent level requires a sure instinct – especially in Berlin, where the topic of rent is politically explosive. Landlords should take market value and their own cost structure into account when setting prices, but also comply with the statutory rent limits. In Berlin, the nationwide rent cap applies: when re-letting, the new rent may not be more than 10% above the local comparative rent. Since 2020, the local rent cap with temporarily stricter upper limits has also been abolished. Here is an overview of what landlords need to know now:

Landlords should put all important agreements in writing. In Germany, a written tenancy agreement is not mandatory by law, but it is strongly recommended. If the contract does not contain certain clauses, the statutory provisions automatically apply – these are often designed to be tenant-friendly. Landlords should therefore always have a valid tenancy agreement signed before the new tenant moves in. Verbal agreements are valid, but are difficult to prove and, in case of doubt, disadvantageous for landlords.

Landlords in Berlin should prepare their apartment optimally before renting it out and have all the important documents ready. In particular, this includes a valid energy performance certificate, which landlords must present to prospective tenants without being asked at the latest at the viewing – since 2014, certain energy values have even been mandatory in real estate advertisements. If the energy certificate is missing or mandatory information is omitted from the advertisement, fines of up to €10,000 may be imposed.