Lease agreement for interim living

Which lease is suitable for temporary housing?

As soon as all agree upon the rental, we take care of the red tape and create the right rental agreement. Our contracts offer legal certainty and are bilingual if necessary (German and English), so all understand what has to be signed. Together with the lease agreement, you will receive an internet agreement and an agreement regarding the prevention of mold and odors in the apartment. For those apartments with the service packages plietsch or kommood we also prepare a housing-provider-confirmation (Wohnungsgeberbestätigung).

What is the difference between the different types of rental contracts?

What many people do not know is that normal German tenancy law applies to temporary living (BGB). There are three types of rental agreements, each of which is tailored to a specific situation. Unlike with a vacation rental for which some kind of booking confirmation is generally sufficient, a legally secure rental contract is necessary when renting for a longer period. This protects both parties to the lease. We will clarify the last details with you, for example whether there should be options for giving notice or extending the lease. Then we will draw up the customized, legally compliant rental agreement that you just need to sign.

Fixed period lease

Both start and end of the rental period are fixed.
The lessor gives the reason for the fixed period (why the lease is limited).
An extension option is not possible in this rental agreement.
If the lessor extends the reason for the fixed-term, the contract can be extended accordingly. Lessees are entitled to timely information in this regard and may insist on an extension of the lease if necessary.
Rental parties can agree to a period of notice for premature termination for the lessees, but lessors do not have this option.
Rental parties can agree to a minimum rental period (non-terminable period).

Lease agreement for temporary use

Both start and end of the rental period are fixed.
Suitable for shorter periods of up to approx. one year.
The lessee gives the reason for the time limit (why the lease has an end date).
The lessee’s life focus is only temporarily located in the rented apartment.
Rental parties can agree to a period of notice for premature termination for the lessees, but lessors do not have this option.
Rental parties can agree to a minimum rental period (non-terminable period).

Unlimited rental contract

This rental agreement has no time limit.
To terminate the contract, lessees must give notice.
Rental parties can agree to a period of notice shorter than the usual three months.
Lessors are bound by the statutory termination options in German law.
Rental parties can agree to a minimum rental period (non-terminable period).

Who receives the rent and deposit?

You will find the details and bank account information in the lease agreement. In some instances, the rent is transferred to City-Wohnen and the deposit must be paid into the lessor's account. In other cases it might be the other way round. No matter what, the first monthly rent and the deposit are due before move in and key hand over.

You may also pay the first rent and the deposit - by appointment only- directly at our office by credit card or apple pay. The processing fee of the credit company is added for this service so that we can transfer the full amount to the lessor.

For the repayment of the deposit, the legal regulations from German tenancy law apply.

Extending the lease

In many cases, extending the lease is no problem. If the lease includes an extension option, a lessee can extend the lease if desired. However, even without an extension option, it occasionally happens that the lease can be extended. This could be the case if the lessors do not need the apartment on the date initially planned.

How to terminate a lease prematurely

A concluded lease agreement is binding for both parties. The contract specifies the term and usually also the period of notice, which is often shorter for temporary accommodation than for open-end contracts. Both parties must fulfill all obligations arising from the lease agreement. An exception can be made if lessees can show a legitimate interest in moving out early.

If lessees wish to move out of a furnished apartment prematurely, the question is how best to regulate this to the satisfaction of both parties to the lease. Naturally, the contracting parties should try to find a good solution, and City-Wohnen is happy to help. The following steps are necessary:

The contracting parties come to an agreement and commission City-Wohnen
The contracting parties agree that City-Wohnen should broker the apartment to seek a new lessee.
Finding a new lessee
City-Wohnen advertises the apartment. The search for suitable lessees starts immediately, all advertisements in the respective portals go online and all current customers are informed.
Create new lease agreement
As soon as an agreement has been reached, City-Wohnen will draw up a new lease agreement.
Lease termination agreement and apartment handover
Once the lease agreement has been signed and the new lease is definitively established, the original lessees can draw up a lease termination agreement and arrange the move-out handover. We will provide the form for termination agreement.
Credit for City-Wohnen service fees
City-Wohnen will credit any service fees that may have been overpaid to the new rental.

This is a reliable arrangement for everyone This service from City-Wohnen is free of charge.

Is there a right of withdrawal for the lease agreement?

If there is a right of withdrawal, we will send you the necessary documents for the revocation instruction as well as a form for the "request for immediate action." If the revocation instruction is missing, this can have serious consequences because the cancellation period is then automatically extended to one year and 14 days. Rent and deposit would have to be paid back. Under certain circumstances, however, the lessee must pay compensation for lost value.

There is no right of withdrawal in the following cases:

The lessee attended a viewing
The lessor is a private person (not commercial)
The lease was concluded in the office of the company
The apartment was rented by a company (a company is not a consumer)
In the case of extensions if the conditions remain largely unchanged.

Who is not a commercial lessor?

Private small-scale lessors are not affected by the revocability of the lease. Even if a rental agreement is concluded by email, post or fax with no prior apartment viewing, these "means of remote communication" are not to be evaluated as "organized sales or service system." As of 01.01.2020, the small business limit was raised from € 17,000 gross turnover to € 22,000 gross turnover in the year prior.

Who is a commercial lessor?

This question is mainly answered by the courts and is assessed on a case-by-case basis. If the rental has a commercial character, a natural person can also be an entrepreneur in the sense of consumer law (§ 14 BGB). The assessment according to tax law/trade law is not relevant here. Relevant criteria are:

Lessors who own several apartments and rent them out according to plan are generally considered to be entrepreneurs. The courts currently go by 6-10 permanently rented apartments as the precedent.
Lessors maintaining an office or an organized business operation for this purpose indicates a business.
Private lessors can be commercial lessors in the sense of consumer rights if contracts are concluded "in practice of a commercial or independent vocational activity."
Lessors who cover their costs of living with rental income can also be classified as entrepreneurs.
A commercial characteristic is more likely to be defined if properties are rented more frequently.

The revocation instruction took place duly

In this case, there is a withdrawal period of 2 weeks. If you cancel within the two-week withdrawal period, the rent must be paid back, even if the apartment has already been occupied. If the lessee has already moved in and revokes within the two weeks, but has expressly requested the start of the lease (request for immediate action) before the end of the revocation period, claims for damages may arise.

Contract changes during the rental period

In the event of significant changes, the same regulations also apply to lease extensions. Significant changes include rent increases, modernization measures, or termination agreements.