How to understand tenancy law – Essential information for tenants about rights and obligations

General

Concept of a Shared Flat (Wohngemeinschaft)

A shared flat is a rental arrangement in which several people live together in one apartment. All residents may be equal main tenants, or one may be the main tenant who sublets to others. Learn more about the legal framework in our guide Definition of a Shared Apartment.

Tenancy Laws

Tenancy law in Germany is primarily regulated in the Civil Code (BGB). Additional regulations and directives ensure the protection of tenants and landlords. A detailed overview is provided in our guide Tenancy Laws in Germany – Key Rules and Regulations.

Tenants, Subtenants and Landlords

Tenants sign the main contract with the landlord. Subtenants live in the apartment under an agreement with the main tenant. Landlords provide the housing and are entitled to rent payments. An overview of rights and duties can be found in our guide Tenants, Subtenants and Landlords – Rights and Duties.

Conclusion of Contract

A rental agreement is concluded when tenant and landlord reach an agreement. It can be oral or written, but written contracts are strongly recommended.

Formal Issues

Rent Amount

The rent is agreed upon in the contract. A common reference is the local comparative rent, indicated in so-called “Mietspiegel”.

Deposit

A rental deposit secures the landlord in case of damage or rent arrears.

• Cash deposit: The tenant pays the deposit in up to three instalments.
• Bank guarantee: A bank guarantees the landlord’s claims.
• Pledged savings book: The tenant hands over a savings account pledged to the landlord.

Permission to Sublet

Anyone wishing to sublet part of the apartment to third parties requires the landlord’s approval. Without this, the rental contract may be at risk.

Clauses in the Rental Agreement

Many rental contracts include additional clauses, e.g. regarding cosmetic repairs or keeping pets. Not all clauses are automatically valid; their wording is decisive.

Peculiarities of Fixed-Term Contracts

In fixed-term contracts, the reason for the limitation must be stated (e.g. intended own use). Without such a reason, the contract may be deemed indefinite.

Defects and Legal Remedies

Remedy of Defects

Tenants are entitled to a defect-free apartment. If problems occur (e.g. mould, heating failure), the landlord is obliged to fix them.

Reimbursement of Expenses

Tenants may claim reimbursement of expenses if they had to remedy defects themselves and the landlord was in default.

Rent Reduction

If defects significantly affect the quality of living, the rent may be reduced accordingly.

Compensation for Damages

If defects cause damage (e.g. furniture destroyed by water damage), tenants may be entitled to compensation.

Termination

If defects are serious and long-lasting, extraordinary termination may be considered.

Termination of Tenancy

Ordinary Termination

Tenants can terminate with three months’ notice. Landlords need a justified reason (e.g. personal use).

Extraordinary Termination for Good Cause

If there is a serious reason (e.g. major breaches of duty), the tenancy may be terminated without notice.

Moving Out of an Apartment or Shared Flat

Moving out of an apartment or shared flat often raises legal and practical questions — especially regarding renovation duties, contract adjustments, and the return of the security deposit. Depending on the rental agreement (main tenant, sublease, or joint tenancy), different rules apply.

Renovation When Moving Out

Whether renovation is required depends on the validity of the renovation clauses in the lease agreement. Fixed renovation intervals or mandatory end-of-tenancy renovations are generally invalid under German law. In shared flats, renovations are usually only due when the entire tenancy ends, not when a single roommate moves out.

Security Deposit Refund

After moving out, tenants are entitled to a refund of their security deposit. However, the landlord may retain it for up to six months to review possible claims — for example, unpaid rent, damages, or pending utility costs. In shared flats, the full deposit is usually refunded only after the entire tenancy has officially ended.

Enforcement Issues

Enforcement

If rent arrears occur, the landlord may, after termination, initiate eviction proceedings through the competent local court. For tenants facing financial hardship, debt counselling services or social authorities may provide important support.