Many landlords believe that the biggest risks associated with a let property only arise when a tenant fails to pay or a dispute ends up in court.
The reality is usually quite different.
The most costly mistakes often occur much earlier on: when drawing up the tenancy agreement, when selecting a tenant, or when making decisions that suddenly become relevant years later. An invalid fixed-term clause, an incorrect termination for personal use, or unpaid rent that has not been checked can quickly cost several thousand euros – and, in some cases, even have a significant impact on a property’s value.
In the 75th Berlin Real Estate Talk, Achim Amann speaks with Solicitor Marek Schulze on the most common pitfalls in tenancy law. Marek Schulze advises landlords, buyers, property management companies and investors on residential and commercial tenancies and handles hundreds of tenancy law cases each year. His experience ranges from terminations for personal use and rent arrears to eviction proceedings and disputes concerning cosmetic repairs.
If you’re just looking for a quick overview, the key takeaways are summarised below. If you’d like to know how courts actually rule, what mistakes landlords keep making, and how to avoid disputes, you should watch the full interview.
Key takeaways from the discussion
Most problems arise during contract drafting.
Many disputes can be avoided before the tenant even moves in. Incorrect terms regarding the fixed-term nature of the tenancy or incomplete contractual clauses can later result in landlords having significantly less room for manoeuvre than originally intended.
2. Own use is possible – but rarely a sure-fire success
Anyone buying a rented flat with the intention of moving in themselves should allow plenty of time. Depending on the individual circumstances, it can easily take between one and a half and two years from the time of purchase until the flat is actually ready for occupation.
3. Communication often resolves issues more effectively than legal proceedings
Many disputes can be resolved through discussion, compromise or tailored solutions. Particularly in cases involving personal use or moving-out agreements, both parties often benefit from a pragmatic settlement.
4. The choice of tenant determines the amount of work involved later on
A thorough credit check, a complete set of documents and a realistic assessment of the tenant’s circumstances can significantly reduce future risks. Many cases of rent arrears can be identified as early as the selection stage.
5. Successful landlords take an active interest in their property
Property is not a passive investment. By looking after your tenants, maintaining the property and ensuring it is professionally managed, you can avoid conflicts and achieve better results in the long term.
What this conversation achieves – and why the video is worthwhile
This discussion is not just for landlords. It is equally relevant for buyers, investors and homeowners who may wish to sell their property at some point.
It becomes clear in the interview that,
- why a tenancy agreement often has financial implications for years to come,
- which is why notices of termination for personal use are far more complex than many people realise,
- how to avoid rent arrears and disputes,
- what role communication between landlord and tenant actually plays,
- and why many supposedly simple off-the-shelf solutions found online are not up to the job in practice.
The practical examples drawn from legal practice are particularly valuable. Rather than relying on theoretical legal texts, Marek Schulze uses real-life cases to explain the mistakes property owners regularly make and how these can be avoided.
For owners, buyers and landlords
Black Label Immobilien experiences the practical implications of tenancy law on a daily basis: in letting, sales, cases of owner-occupancy and purchasing decisions.
Marek Schulze provides the legal perspective and highlights which decisions are sustainable in the long term – and which could prove costly later on.
The combination of market experience and legal expertise provides guidance in an environment that is becoming increasingly complex for many property owners.
If you’re looking to buy, sell or re-let a rented flat, please get in touch with us.
