Re-leasing

Re-letting - Re-letting refers to the process of renting out an apartment or commercial unit again after the previous tenant has moved out. It includes the handover of the property, any necessary renovations, the re-letting strategy, and the signing of a new lease agreement. Since 2015, many cities have applied the regulations of the rent cap (§ 556d BGB) to re-letting, which limit the permissible rent level for new leases. A professionally managed re-letting minimizes vacancy periods, maximizes the achievable rent, and protects the landlord from legal risks.

Rent Control and Permissible Rent Levels

In areas with a tight housing market, the rent for a new lease may exceed the local comparative rent by a maximum of 10%. Since the Bavarian Tenant Protection Ordinance took effect, Nuremberg has been among the areas subject to rent control-the current ordinance is valid until December 31, 2025, and an extension is likely.

Exceptions to the rent cap apply to:

• New construction: First occupancy after October 1, 2014 - the rent cap does not apply to these apartments
• Comprehensively modernized apartments: Investments of at least one-third of the cost of new construction - in such cases, the market rent may be charged without the cap
• Grandfather clause: If the previous rent was already above the permissible limit, that rent level may be maintained

Landlords must disclose the previous rent to the new tenant upon request without being asked. Violations of the rent cap do not render the lease agreement invalid, but the tenant may retroactively reclaim the excess rent paid after notifying the landlord of the violation-covering the entire rental period from the date of notification. We therefore strongly recommend precisely calculating and documenting the permissible rent before concluding the new lease agreement.

Process of Structured Re-Leasing

A professionally executed re-leasing process includes the following steps:

1. Apartment Handover with the outgoing tenant: Handover report, meter readings (electricity, gas, water, heating), return of keys, security deposit settlement within 6 months of move-out
2. Condition assessment and renovation planning: Inspection of cosmetic repairs (costs approx. 2,000-8,000 euros for a 3-bedroom apartment), inspection for structural damage to be compensated by the departing tenant
3. Energy performance certificate: Mandatory for new rentals - failure to provide one may result in fines of up to 15,000 euros; the energy performance certificate must be presented at the time of the viewing
4. Professional property listing creation: High-quality photos (professional photographer if necessary), current floor plan, complete mandatory information (rental prices, energy performance certificate rating, brokerage fee)
5. Listings on real estate portals: ImmoScout24, Immowelt, Immonet (costs approx. 50-200 euros/month), supplemented by social media advertising if necessary
6. Viewings and tenant selection: Credit check (SCHUFA report, proof of income, certificate of no outstanding rent), self-disclosure form
7. New lease agreement: Written agreement of all essential terms, handover to the new tenant with a new handover report

The typical vacancy period for re-letting is 2-4 weeks in sought-after locations and 1-3 months in less desirable locations.

Operating Cost Settlement When Tenants Change

When tenants change within a billing year, a special accounting situation arises: The operating cost settlement must be calculated on a pro-rata basis for the period during which the departing tenant occupied the property. In this case, consumption-based costs (heating, hot water) must be allocated based on meter readings, while non-consumption-based costs (property tax, insurance) must be allocated on a pro-rata basis. An incorrect allocation can lead to claims for additional payments-we recommend recording an interim meter reading on the handover date as a binding part of the handover report.

Practical Tip for Landlords in Nuremberg

We recommend that landlords in Nuremberg strategically prepare for re-letting: Use the Nuremberg Rent Index to check the local comparative rent for your apartment and calculate the maximum permissible rent while complying with the rent cap. In sought-after neighborhoods such as St. Johannis, Gostenhof, or Maxfeld, demand is high and vacancy rates are minimal-here, professional tenant screening is particularly worthwhile to find reliable long-term tenants.

In neighborhoods with a higher supply, such as Langwasser or Kornburg, we recommend upgrading the condition of the apartment before re-renting it (fresh coat of paint, modern fixtures) to shorten the marketing time. We handle the entire re-letting process-from determining the rent to handing over the keys to the new tenant-and guarantee legally compliant lease agreements that comply with both rent control regulations and current case law.

Frequently Asked Questions

How quickly do I need to re-let after a tenant moves out?

There is no legal obligation to re-rent an apartment within a specific timeframe. However, vacancy costs (property tax, maintenance fees, insurance, mortgage payments) can be significant during prolonged vacancies-for a typical 3-bedroom apartment in Nuremberg, monthly fixed costs amount to approximately 400-800 euros. Vacancy periods can also pose tax issues: The tax office only recognizes income-related expenses if there is a verifiable intention to rent out the property. We recommend starting the marketing process as early as the notice period.

Do I have to comply with the rent control law when re-renting?

Yes, the rent cap under Section 556d of the German Civil Code (BGB) applies in Nuremberg. When re-renting, the rent may not exceed the local comparative rent by more than 10%. Exceptions apply to new buildings, extensively modernized apartments, and cases where the previous rent was already higher (grandfather clause). Modernization costs can be passed on to the rent at a rate of up to 8% annually (Section 559 of the German Civil Code), which can also increase the permissible rent when re-letting. We calculate the maximum permissible rent based on the Nuremberg rent index and document the calculation in a legally compliant manner.

What documents should I request from new tenants?

For a well-informed tenant selection, we recommend the following documents: SCHUFA credit report (no older than 3 months), proof of income for the last 3 months (pay stubs or tax assessments for self-employed individuals), a certificate of no outstanding rent from the previous landlord, a copy of the ID card, and a completed self-disclosure form from the prospective tenant. Questions regarding pregnancy, family planning, religious affiliation, or political party membership are prohibited-these violate the General Equal Treatment Act (AGG). Data on rejected applicants must be deleted within 6 months at the latest (GDPR).

What should be considered in the case of a temporary lease?

If an apartment is to be rented out only for a limited period (e.g., during planned renovations to follow), only a fixed-term lease agreement pursuant to § 575 BGB is valid-this requires a legitimate interest on the part of the landlord (personal use, planned renovation, sale). Without sufficient grounds, the fixed-term lease agreement is invalid and is considered an open-ended lease agreement. We can advise you on which type of contract is legally sound for your specific situation.

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