Every year, the ordinary courts in the country hear around 300,000 cases with regard to tenancy. The trial may take a while but the law is enforced.

Discussing Rents

The German Tenancy Law permits free negotiation of rents between landlords and tenants. Landlords will be fined though if they charge 20% higher than the rent for a similar facility. Rents remain the same for at least 12 months and the tenant must be informed of any increases in writing.

The contract that the tenant and landlord come in agreement with may contain graduated increase or indexation clauses pertaining to the increase in rates. Lawyers in Munich will be able to guide you through the extents and limitations with regard to this. There are several clauses which discuss the intricacies of the rent adjustment.

The contract may be considered unlimited or limited agreements. Unlimited contracts are the predominant type of agreements. Limited contracts, on the other hand, state the need of the landlord or his family to use his property or execute needed renovations. It must be noted though that contracts that will last over a year must be put in writing.

In case of problems, a landlord may serve an ordinary or an immediate notice to the tenant.

The ordinary notice is applicable to unlimited contracts. It is served if the tenant breach a contract, the owner needs the property, or if the existing contract prevents the owner from getting more economic gains from the property. This is usually given for a period of 3 to 9 months.

The immediate notice effects the immediate termination of a contract due to breach of important provisions or agreement.

The Tenancy Law of Germany is best discussed with lawyers in Munich. They can give you advice and guidance so you are sure that the deal is fair and in accordance with the German law.

Knowing About the Tenancy Law

To know more about this German Law, you may browse online for the German Civil Code. You can specifically find the guidelines on tenancy in the 11th Book or Law of Obligations. Other pertinent readings may include Law on Apartment ownership, Regulation on the Calculation of Heating Costs, Regulations on Personal Chattel, and Law on Regulation of Estate Agencies.