A lease is an important legal contract that is made between a landlord and a tenant. It regulates the relationship between both parties and the conditions of the rental. There are many clauses in a rental agreement that renters and landlords should understand to ensure their rights are protected.
Unfortunately, there are also many common mistakes that can occur in a lease, especially when the tenant and landlord do not understand what is in the contract. Having a rental agreement reviewed can help you avoid these mistakes and make sure you understand what’s in the contract and what your responsibilities are.
In this article, we will discuss 10 important clauses in a rental agreement and common mistakes that can occur when renting a home. We will also discuss why it is important to carefully review a lease and the benefits this can have for both tenant and landlord.
Whether you are a landlord or a tenant, it is important that you understand the lease before you sign it. A careful review can help you avoid future difficulties or disagreements and ensure that your interests are respected.
Learn more about the most important clauses in a lease and the most common mistakes that happen when you don’t carefully review these clauses in this article.
The duration of the lease
When renting residential space, the lease term is often an important part of the lease agreement. The lease term is the time for which the landlord allows the tenant to use the apartment. There are different types of leases that may differ in terms of the lease term.
Usually, a lease is signed for an indefinite period of time. This means that the tenant can use the apartment for as long as they want, as long as the landlord has no reason to terminate the lease. However, there are also fixed-term leases where a fixed rental period is agreed upon. In this case, it is important that the landlord wants to use the apartment again after the end of the rental period or that renovation measures are planned.
- Choose the length of the lease carefully: A lease term that is too short may mean that you have to leave the apartment early. Too long a lease term can result in you having to use the apartment even though you don’t need it anymore.
- Notice periods: Check which notice periods are agreed in the rental agreement. Usually, the notice period for tenancy agreements for an indefinite period is three months. In the case of fixed-term leases, termination is only possible under certain conditions.
- Renewal options: If you’re signing a fixed-term lease, be sure to check if there are renewal options. In this way, you can ensure that you will be able to continue using the apartment after the end of the lease term.
It is advisable to have the rental agreement checked by a lawyer or tenants’ association before concluding it in order to avoid possible mistakes. In particular, the clauses regarding the duration of the lease should be closely scrutinized in this regard.
The importance of rent in the lease
The amount of rent is an important part of any lease agreement. It is agreed between the landlord and tenant and should be proportionate to the size and facilities of the apartment and the location of the property. It is therefore advisable to carefully examine the amount of the rent and, if necessary, seek a renegotiation with the landlord.
Another important factor is whether the rent in the lease is in accordance with the law. If the rent is too high or too low, the worst case scenario can lead to legal disputes. A review of the rental agreement will help identify and correct any potential errors.
The most common clauses that occur in connection with the rent in the lease include the rent deposit, the operating costs statement and the rent increase. It is therefore important to check these clauses carefully and, if necessary, to negotiate in order to achieve a fair and equitable arrangement.
- The rent deposit: The amount of the rent deposit is regulated by law and may not exceed three months’ rent as a rule. However, it is possible to agree on a higher deposit with the landlord.
- The operating costs statement: The operating costs statement lists all ancillary costs such as water, heating and waste disposal. It is important to check that all costs have been settled at a reasonable amount and that the tenant is entitled to pay them.
- The rent increase: A rent increase may only take place under certain conditions. The landlord must give written notice of the increase and it may only be in reasonable proportion to the current rent.
Checking the lease for these clauses and errors can help ensure that the tenant is not unintentionally disadvantaged and receives a fair rental agreement.
Have the most important clauses checked in the rental agreement
When using the apartment, there are some important clauses that should be in the lease agreement. Particularly important are provisions on operating costs and rent increase. A precise list of the individual operating costs and their distribution among the tenants must be recorded in the lease agreement.
In addition, there should also be a clause for rent increase. Here a staggering of the increases is very important. The notice period and the maximum amount of the increase must also be specified. Another important clause is the provision on subletting. It should be specified whether subletting is permitted at all and, if so, under what conditions.
- Regulations concerning the operating costs
- Clauses on rent increase
- Provisions regarding subletting
Another important point is the provision on renovation. It should be specified here who is responsible for which renovation work and who bears the costs for it. The exact deadlines for renovation work should also be specified in the lease agreement.
An important regulation also concerns the issue of pets. It should be specified whether pets are allowed and, if so, under what conditions. Also a regulation for the use of the garden or the terrace can be fixed in the lease contract.
- Regulation on renovation
- Clause on pets
- Regulation on the use of the garden or terrace
In order to avoid mistakes in the rental agreement, it is advisable to check it carefully or have it checked before signing it. A specialized lawyer can help here and protect against a possible trap in the contract.
Regular maintenance and repairs are important for a tenancy free of defects
As a tenant, you can’t avoid dealing with the issue of maintenance and repairs. According to ยง 535 para. 1 of the German Civil Code (BGB), the landlord is obliged to hand over the apartment to the tenant in a perfect condition and to maintain it in this condition during the rental period. However, it is also the tenant’s responsibility to treat the apartment with care and, if necessary, to report any damage or defects immediately.
Regular maintenance of the apartment by the landlord is also required by law. The tenant has the right to report any defects or damages to the landlord and demand repair or restoration of the property.
An important clause in the lease concerns the responsibility for repairs. Here it is important that the division of repair costs between tenant and landlord is clearly regulated. Ideally, the landlord will assume all costs arising from repairs and maintenance measures.
When reviewing the lease, clauses regarding termination and renewal of the lease should also be considered. For example, it is important that the notice periods of both parties are regulated in the same way and that an extension of the tenancy is only possible with the consent of both parties.
- Important clauses in the rental agreement:
- – Sharing of repair costs
- – Notice periods
- – Extension of the lease
If there is any ambiguity or uncertainty regarding the lease agreement, it is essential to consult a specialist lawyer for landlord and tenant law. This is how to avoid mistakes that could later result in termination of the lease.
Early termination and return of the apartment
When you sign a rental agreement, you usually agree to use the rental property for a certain period of time. However, if you would like to terminate the apartment prematurely for certain reasons, you should first read in your rental agreement whether premature termination is possible and what notice period must be observed.
In order to protect yourself from unpleasant surprises, you should have your rental agreement checked. There are several clauses that are commonly found in leases that can have unpleasant consequences if they are not followed. This includes, for example, cosmetic repair clauses, which state that you must return the apartment in a certain condition when you move out, or renovation clauses, which stipulate that you must carry out certain work at your own expense.
To check these and other clauses in your lease, you can consult a lawyer or a tenants’ association. There you will receive expert help and can ensure that you do not make any mistakes that you will regret later on.
- Tip: Before you return the apartment, you should carry out an inspection together with the landlord and obtain written proof of the condition of the apartment. In this way, you can ensure that you do not have any disadvantages in the event of later disputes.
- Conclusion: early cancellation of the apartment is usually possible, but with some limitations. To avoid nasty surprises, you should have your rental contract checked for clauses and carefully observe all formalities.