Shared apartment

Shared Housing (WG) - Shared housing (WG) is a living arrangement in which several people rent and live in an apartment together, with each resident having their own room and sharing common areas such as the kitchen and bathroom. In terms of tenancy law, the WG is particularly relevant because the choice of contract structure-between the primary tenant model, individual lease agreements, and a joint lease agreement-has significant implications for liability and protection against eviction. For landlords, WG arrangements present both opportunities (lower vacancy risk, higher total rent) and specific administrative requirements.

Contract Models Under Tenancy Law

There are three common contract structures for shared housing:

In the main tenant model, one person enters into the lease agreement with the landlord and sublets individual rooms to the roommates. The primary tenant is solely liable to the landlord for the entire rent and must obtain a subletting permit (Section 553 of the German Civil Code (BGB))-if the landlord denies this without just cause, the tenant can enforce the permit in court. This model is easy for landlords to manage but carries the risk that the primary tenant will move out, leaving roommates without a lease.

In the joint lease agreement, all flatmates are equal tenants and are jointly and severally liable for the rent: the landlord can demand the full rent from any individual tenant. Termination requires a joint declaration from all tenants, which becomes problematic when residents change-everyone must agree, even if only one person wants to move out. This model offers the landlord the strongest protection but makes tenant turnover considerably more difficult.

The third option is individual lease agreements per room-here, each resident has their own contract with the landlord. While this increases administrative overhead, it offers the clearest legal framework: Each tenant is liable only for their room and their share of common areas, tenant changes are possible without the consent of others, and rent control applies to each room separately.

Renting to Shared Apartments - Opportunities and Risks

For owners, renting to a shared apartment can be financially attractive: The room rents often add up to a total amount that is 15-25% higher than the rent for a traditional single-room rental. For a 4-room apartment in Nuremberg with a standard market rent of 1,200 euros (excluding utilities), shared apartment rooms can collectively generate 1,400-1,500 euros. Additionally, the risk of vacancy decreases, as the remaining residents continue to pay when one moves out.

On the other hand, there is a higher administrative burden: more frequent tenant turnover, more move-out inspections, and more intensive communication. Wear and tear on the apartment also tends to be higher with shared living arrangements than with single tenants, especially in common areas. Landlords should include clear provisions in the lease regarding the search for a new tenant, the maximum number of residents, and the requirement for approval when residents change.

The rent cap applies to shared apartment rooms just as it does to entire apartments-the room rent may not exceed the local comparative rent per square meter by more than 10%. In Nuremberg, which is part of the rent cap zone, these regulations must be strictly enforced.

Shared Apartments and the Misuse Ordinance

In Nuremberg, the Misuse Ordinance has been in effect since 2020: residential space may not be used commercially or for other purposes without permission. Renting a room in a shared apartment remains residential use and is generally permitted. Problems arise when shared apartment use crosses the line into commercial room rental (guesthouse, hostel)-e.g., due to very frequent tenant turnover, short lease terms, or advertising on platforms like Airbnb. In such cases, the City of Nuremberg may deny permission under the Misuse of Residential Property Ordinance or require the property to be restored to residential use.

Practical Tip for Landlords in Nuremberg

We recommend that landlords in university-adjacent neighborhoods such as Gostenhof, St. Johannis, or Maxfeld specifically leverage the shared-living potential of their larger apartments (starting at approx. 80 square meters, at least 3 rooms). The proximity to Friedrich-Alexander University and Nuremberg Tech ensures constant demand, especially in the summer (start of the semester in October) and in the months leading up to it.

We recommend the model with individual lease agreements per room, as it involves the least effort when tenants change and does not require joint and several liability. We handle the drafting of the lease agreements and verify whether the room rents fall within the limits of the Nuremberg Rent Control Act-when determining the local comparative rent for shared apartment rooms, micro-location, amenities, and apartment size are decisive factors.

Frequently Asked Questions

Does the tenant need permission to sublet to roommates?

Yes. If the lease was signed with only one primary tenant, that tenant requires the landlord’s express permission to sublet (Section 553 of the German Civil Code). If the primary tenant has a legitimate interest in subletting-for example, because they cannot afford the rent alone-the landlord may only refuse permission for good cause, such as if the apartment is overcrowded. In the case of a joint lease agreement signed by all shared apartment residents, no subletting permission is required.

Who is liable for damages in a shared apartment?

Liability depends on the lease model. In a joint lease agreement, all tenants are jointly and severally liable-the landlord can demand full compensation from any resident. In the primary tenant model, only the primary tenant is liable to the landlord; they can seek recourse from subtenants internally. With individual lease agreements, each tenant is liable only for damage in their own room and proportionally for common areas. We recommend that landlords agree on a reasonable security deposit of up to 3 months’ net rent per lease agreement.

Can the landlord limit the number of residents in a shared apartment?

Yes. The landlord can specify a maximum occupancy in the lease agreement, which should be based on the living space-a guideline of at least 8 to 10 square meters per person applies. The landlord may issue a warning regarding overcrowding as a breach of contract and terminate the lease if the situation persists. Furthermore, building regulations and the city of Nuremberg’s statute on misuse of property may impose limits if the shared living arrangement takes on the character of a commercial room rental.

How do rent increases work for shared apartment rooms?

In the case of individual lease agreements per room, the landlord may increase the rent for each room individually in accordance with general tenancy law provisions-that is, up to the local comparative rent (§ 558 BGB) or following modernization (§ 559 BGB). The cap of 20% over three years (15% in tight markets) also applies. In the case of a joint lease agreement, the rent increase must be declared to all tenants jointly and must be accepted by all of them.

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