Letting a flat sounds simple at first: place an advert, find a tenant, hand over the keys. In practice, however, the details decide whether the tenancy runs smoothly for years or causes trouble and cost. Anyone letting in Freiberg or the surrounding area is well advised to work carefully from the outset. This guide shows how letting typically works, how to find the right rent, what matters in the tenancy agreement and how to account for service charges correctly.

The process in five steps

An orderly letting almost always follows the same pattern:

  1. Prepare the flat and documents. Fix minor defects, clean the flat thoroughly and have all the important documents ready (see below). A well-kept first impression pays off in the rent level and in the choice of tenant.
  2. Set the rent. The rent depends on location, size, condition and fittings, as well as on what is actually paid for comparable flats in the region.
  3. Marketing. Bright, honest photos, a compelling brochure with a floor plan and targeted outreach to suitable prospective tenants. In Freiberg and Chemnitz your local network often counts too.
  4. Viewing and tenant selection. Coordinate appointments, check the self-disclosure and financial standing of serious prospective tenants, and choose the right tenant.
  5. Tenancy agreement and handover. The tenancy agreement is signed, the deposit agreed and the flat handed over with a written record.

The documents you should have ready

The more complete your documents, the more professional you appear and the more smoothly the letting runs. These usually include:

  • A current energy certificate. It is mandatory when letting and must be presented at the viewing at the latest.
  • A floor plan and details of the living space
  • A tenancy agreement in a current, legally sound version
  • A handover record with meter readings (electricity, water, heating)
  • The self-disclosure and evidence you request from the prospective tenant
  • For a flat: the house rules and details of the apportionable operating costs

After moving in, your tenant also needs a landlord confirmation of residence (Wohnungsgeberbestätigung). Without this certificate they cannot register at the citizens’ office. So issue it promptly.

Setting the right rent

The most common mistake is a rent based on gut feeling. Set too high, the flat stays empty, and every month of vacancy costs real money. Set too low, you give away considerable sums over the entire tenancy.

The benchmark is the local comparative rent, that is what is actually paid for flats of a similar type, size, fittings and location. Smaller towns such as Freiberg often have no qualified rent index. That makes knowledge of real, current local transactions all the more important. To find the right rent level, it is best that we view your flat in person and compare it with properties actually let in the region.

Whether you later agree an adjustment via a stepped or index-linked rent should be considered when drawing up the tenancy agreement. It cannot simply be added afterwards.

What matters in the tenancy agreement

A good tenancy agreement protects both sides and prevents disputes. These points deserve particular attention:

  • Deposit. It may be no more than three months’ net cold rent and the tenant may pay it in three monthly instalments. Hold the deposit separately from your own assets and with interest.
  • State the net cold rent and service charges separately. Only then is a clean statement possible later.
  • Cosmetic repairs. Rigid renovation deadlines are invalid. Make sure the wording is current and balanced.
  • Notice periods. For the tenant, three months usually apply. As a landlord, you can only give notice with a legitimate interest, for example for your own use, and depending on the length of the tenancy the periods are extended.
  • Fixed term. A fixed-term tenancy is only permissible with a recognised reason, otherwise the agreement automatically counts as open-ended.

Passing on service charges correctly

You may only pass on to the tenant costs that are expressly agreed in the tenancy agreement. Which items are apportionable is governed by the Operating Costs Ordinance (Betriebskostenverordnung). These include, for example, property tax, water and waste water, heating, refuse collection, building cleaning, garden maintenance and building insurance. Not apportionable, by contrast, are management costs as well as maintenance and repairs.

The deadline is important: the statement must reach the tenant no later than twelve months after the end of the accounting period. If you miss this deadline, you can generally no longer claim an additional payment. A credit balance, however, you must still pay out to the tenant.

Why a regional agent makes the difference

The real work begins with choosing the right tenant. An agent who knows Freiberg and Mittelsachsen from practice assesses the rent level against real local transactions, handles the viewings and checks carefully whether a prospective tenant is solvent and reliable. On top of that comes an existing circle of pre-registered searchers, through whom many flats can be placed quickly.

We take care of the rent pricing, the preparation of the documents, the marketing, the tenant selection and the support through to handing over the keys. You can get an impression of the properties we currently manage in our rental listings, and an overview of all services can be found on the relevant page.

Your next step

If you would like to let a flat, we are happy to take it on for you. Get in touch with us directly and describe your property. In conversation we clarify your wishes and the process. We then take care of the right rent, the marketing and the selection of the right tenant, through to handing over the keys.