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Your Guide for Mid-Term Furnished Rentals (1–12 months) under German tenancy law (Mietrecht)
For private landlords and property owners in Germany or those based abroad looking to rent out property within the country, drawing up a rental contract is a critical legal safeguard. And if you’re offering furnished apartments for mid-term stays (1 to 12 months) through platforms like Wunderflats, your rental agreement must not only comply with German tenancy law but also meet the specific expectations of temporary tenants.
This article guides you through everything you need to include in a rental contract, from mandatory clauses under German civil law to recommended additions that help avoid conflicts and misinterpretations.
Legal Basis for Rental Contracts in Germany
The legal foundation for rental agreements is found in the German Civil Code (Bürgerliches Gesetzbuch – BGB), particularly in:
- §§ 535–548 BGB: Define the rights and duties of both landlord and tenant, including use of the property, maintenance, and rent payments.
- §§ 549–580a BGB: Cover different types of tenancy arrangements (e.g., furnished rooms, leases with service elements).
Fixed-Term vs. Open-Ended Contracts
Fixed-Term (Befristet): These leases have a defined end date but are only valid if the landlord states a legally recognized reason for the time limitation. Acceptable reasons include:
- Personal use (Eigenbedarf) at the end of the lease
- Major planned renovations
- Sale of the property
Without such justification, a court may consider the contract as open-ended despite its wording.
If a rental contract has a fixed end date (for example, 6 or 12 months), the landlord must clearly explain the reason in writing: such as needing the apartment back for personal use. This must be included at the start of the contract.
Also, if the contract is longer than one year, it must be in writing (not just agreed verbally), or it will automatically count as an open-ended (indefinite) lease under the law.
Open-Ended (Unbefristet): Under § 573c BGB Tenants can end an open-ended rental contract at any time by giving 3 months’ notice, no matter what the contract says.
Landlords also have to give at least 3 months’ notice, If the tenant has lived in the apartment for up to 5 years. But if the tenant has lived there for a long time, the notice period can be even longer. This rule protects long-term tenants by giving them more time to find a new place if the landlord wants to end the lease.
In mid-term furnished rentals, fixed-term contracts are common and expected by tenants. However, the legal justification must be included in writing to comply with §575 BGB.
Essential Components of a Rental Contract
Here are the non-negotiable elements that every rental contract must contain to be enforceable and effective under German law.
a. Identification of Parties
List the full legal names, permanent addresses, and contact information of both landlord and tenant. If there are multiple tenants or co-owners, all must be named.
b. Description of the Property
Detail the rented property precisely, including:
- Full postal address
- Floor level, unit number (if applicable)
- Living area size in square meters
- Number and type of rooms
- Access to additional facilities: balcony, basement, parking, etc.
- A short list or reference to the furnishings and appliances provided
This section should align with the inventory list (see below) and is crucial for mid-term furnished leases.
c. Rental Duration
Specify the start date and either:
- A clearly stated end date (for fixed-term contracts), including the reason
- Or the termination process (for open-ended contracts), including statutory notice periods
Note: Tenants may have stronger protections in open-ended contracts and can terminate with one month’s notice after the initial period.
d. Rent Amount and Breakdown
Rent should be clearly stated and divided into:
- Kaltmiete: the basic rent excluding additional costs
- Nebenkosten: operating and service charges
- If applicable, a combined Warmmiete, which should list all included components
Specify whether internet, TV license (Rundfunkbeitrag), heating, and electricity are part of the total rent or separately billed.
e. Deposit (Kaution)
Per §551 BGB:
- The deposit cannot exceed three months’ net cold rent
- It must be placed in a separate escrow account with interest (often in a Sparbuch or savings account) with no access by the landlord during the tenancy. Landlords cannot use the money during the rental period.
- Tenants may pay in three monthly installments
Include when and how the deposit will be returned after move-out (typically within 3–6 months, depending on pending utility bills).
This setup protects tenants money in case something happens to the landlord or their finances.
f. Payment Terms
Detail:
- Due date for monthly rent (commonly the 3rd working day)
- Payment method (e.g., SEPA transfer)
- Account details
- Late payment consequences (must be reasonable and legally valid)
g. Utilities and Operating Costs
For mid-term rentals, utility cost transparency is key.
Include:
- Heating and hot water
- Electricity and gas
- Internet and telephone
- Waste disposal
- Building cleaning, snow removal
- Caretaker or janitorial services
- Property tax (Grundsteuer)
- Broadcast license fee (Rundfunkbeitrag / GEZ) regardless of media use. This fee is not optional and is not typically included in rent or utilities.
Use a “Nebenkostenpauschale” (flat rate) or “Nebenkostenvorauszahlung” (prepayment with annual reconciliation) model. The latter is more common in long-term leases, but for mid-term stays, a flat rate is simpler to manage. Just ensure it’s realistically calculated.
If advance payments (Nebenkostenvorauszahlung) are agreed or if tenants prepay for utilities, § 556 BGB requires landlords to issue a utility cost statement (Nebenkostenabrechnung) annually. This is not optional. If the landlord doesn’t do this, tenants can’t ask for extra money later or keep part of the deposit to cover utility costs.
Flat Rate vs. Prepayment for Utilities
- Flat Rate (Nebenkostenpauschale) : Tenants pay a fixed amount each month, and that’s it: no refund if tenants use less, and no extra charge if they use more.
- Advance Payment (Nebenkostenvorauszahlung): Tenants pay an estimate each month, but once a year, the landlord checks their actual usage. If tenants overpaid, you get money back. If tenants used more, they might owe extra.
Inventory List for Furnished Apartments
One of the most critical documents accompanying the rental contract is the inventory list (Inventarliste).
It should include:
- Furniture (sofa, bed, tables, chairs)
- Appliances (fridge, dishwasher, washing machine)
- Kitchen equipment (cutlery, plates, coffee maker)
- Electronics (TV, modem, lamps)
- Decorative items (rugs, artwork, curtains)
Each item should be listed with quantity, condition, and brand/model if possible. Ideally, attach photos during check-in to document the state of the furnishings.
The inventory list should be signed by both parties and referenced in the main contract to make it legally binding.
Optional but Recommended Clauses
To minimize ambiguity and manage expectations, include these additional clauses:
a. House Rules (Hausordnung)
If the property is in a multi-unit building, include shared house rules covering:
- Quiet hours (typically 10 pm – 6 am)
- Waste separation and disposal
- Cleaning of shared areas
- Use of balconies or communal gardens
This helps tenants integrate smoothly and avoid neighbor complaints.
b. Subletting Policy
Clearly state whether the tenant can sublet the apartment (either partially or entirely) and under what conditions. According to §540 BGB, subletting requires the landlord’s written consent.
Tenants must get written permission from the landlord if they want to sublet the apartment, or even just a room in it.
However:
- Landlords must have a valid reason to say no to partial subletting (like renting out one room).
- They can’t just refuse without explanation. If the landlord tries to block subletting without a good reason, that rule may not be legally valid.
c. Internet Usage Policy
If internet access is included, include acceptable use terms:
- Ban on illegal downloads
- Prohibition of commercial use
- Responsibility for fines due to misuse
You may also include a fair use clause if bandwidth is shared with others.
d. Cleaning Responsibilities
Specify:
- Whether the tenant is responsible for regular cleaning
- Whether professional end-of-tenancy cleaning is required (often mandatory in furnished rentals)
- Whether a cleaning service is provided (and at whose cost)
e. Early Termination
If you allow early termination, define:
- Minimum stay requirement
- Notice period
- Requirement for replacement tenant
- Potential early exit fee (must be reasonable)
A rental agreement can include rules about ending the lease early, but:
- Tenants still have the legal right to end an open-ended lease with 3 months’ notice, no matter what the contract says.
- If there are fees for ending early, they must be fair and reasonable. Landlords can’t make up rules that take away these basic tenant rights.
f. Kleinreparaturklausel (Small Repairs Clause)
Landlords can include a rule in the contract saying tenants are responsible for small repairs (like fixing a leaky faucet or a broken door handle). But there are limits:
- Tenants can only be asked to pay up to €75–100 per repair
- The total amount per year is usually limited to €200–300
If the contract asks the tenant to pay more than these limits, that part of the contract is not legally valid.
Legal Considerations for Mid-Term Rentals
a. Registration Requirements (Anmeldung)
If the tenant does not have another residence in Germany, they must register the address (Anmeldung) even for stays under 6 months. As the landlord, you are legally required to:
- Provide a Wohnungsgeberbestätigung (landlord confirmation) within two weeks of move-in
Per § 19 BMG when a tenant moves in, the landlord must give them a signed confirmation form (called a Wohnungsgeberbestätigung) within two weeks.
The tenant needs this form to register their new address (Anmeldung) with the local authorities.
If the landlord doesn’t provide it on time, they can face fines, under § 54 BMG, and it may cause delays or problems for the tenant, especially when applying for things like visas or opening a bank account.
b. Tax Obligations for Landlords
Rental income is considered taxable income in Germany. You must:
- Report it in your German tax return
- Declare any foreign income as well (if applicable)
- Deduct legitimate expenses (mortgage interest, repairs, depreciation)
Non-resident landlords may also be subject to limited tax liability and should investigate double taxation agreements (DTA) with their home country.
You may also need to register for a tax identification number (Steuernummer) if you don’t already have one.
Common Mistakes to Avoid
Landlords often make avoidable errors that can undermine a contract’s validity or lead to disputes. These include:
a. Unclear or Missing Clauses
Vague rental durations, incomplete utility breakdowns, or missing payment instructions can leave room for interpretation and conflict.
b. Reusing Outdated Templates
Contracts found online may not reflect recent changes in German tenancy law or the unique conditions of mid-term furnished rentals.
c. Illegal or Unenforceable Clauses
Examples include:
- Requiring the tenant to pay for all repairs, regardless of cause
- Excessive penalty fees for early termination
- Attempting to waive statutory tenant rights (such as notice periods or rights to utility reconciliation)
- Forbidding all subletting categorically
Such clauses are void under German law and can damage the landlord’s credibility.
d. Lack of Documentation
Not taking move-in/move-out pictures, skipping the inventory checklist, or failing to document meter readings can leave you vulnerable in case of damage or billing disputes.
Resources and Templates
- Pre-vetted contract templates
- Inventory checklists
- Registration confirmation templates
- Support with deposit handling and utilities
Trusted Sources
- Haus & Grund landlord association
- Mieterverein (Tenant Association): for understanding tenant rights
- German Civil Code (BGB): Available in English on legal databases
- Wunderflats Knowledge Base: Offers up-to-date guides for mid-term landlords
A solid rental contract is about setting up a transparent, cooperative relationship with your tenant. For mid-term furnished rentals, clarity, legality, and detail are your best allies.
Legal review by Stephan Hartmann, Ass. jur., Data Privacy Officer at Lecturio — Tbilisi, Georgia
Disclaimer: The contents of this page have been prepared for your information and Stephan Hartmann, Ass. jur., Data Privacy Officer at Lecturio has been commissioned to check the legal correctness of this article. However, this article does not constitute legal advice. Always consult a legal professional for personalized guidance, especially if you're renting out property in Germany as a non-resident landlord or in complex circumstances.
