Finding the right tenantselection, checks, contract

1. Setting the right rent

A market-based rent attracts enough applicants without the flat standing empty for long. Rent indices (Mietspiegel), comparable offers and local experience provide guidance. Rents that are too high often attract applicants who cannot really afford the flat. You can find the current ranges in the Upper Franconia rent index.

2. A meaningful advert

Good photos, a floor plan, all costs (net cold rent, service charges, heating costs, deposit) and the mandatory information from the energy performance certificate (Energieausweis). State clearly who the flat is suitable for – without discriminatory requirements.

3. Pre-selection and viewing

When demand is high, a written pre-selection is advisable: number of people, move-in date, occupation, pets. Viewings in small groups or individual appointments give you the opportunity to talk.

4. Tenant self-disclosure (Mieterselbstauskunft) – what you may ask

Permitted: Name, address, occupation, employer, net income, number of people moving in, pets, previous tenancies, ongoing insolvency or eviction proceedings.

Not permitted: Religion, ethnic origin, sexual orientation, family planning or pregnancy, party membership, criminal records unrelated to the tenancy.

False answers to impermissible questions have no consequences for the tenant; false answers to permissible questions can justify rescission or termination.

5. Checking documents

Under data protection law, landlords may only request documents once there is a concrete interest in concluding a contract – usually after the viewing and only from the shortlisted applicants:

• Proof of income for the last three months or an employment contract
• Credit report (e.g. SCHUFA-BonitätsCheck)
• Rent arrears clearance certificate (Mietschuldenfreiheitsbescheinigung) from the previous landlord (there is no legal entitlement to it, but it is customary)
• Identity card for identification

Rule of thumb: The gross rent including heating should not exceed a third of the net household income.

6. Deposit and tenancy agreement

The deposit (Kaution) may not exceed three months' net cold rent; the tenant may pay it in three monthly instalments. The landlord must keep it separate from their own assets. Use an up-to-date tenancy agreement – many clauses from old forms (e.g. rigid deadlines for cosmetic repairs) are invalid.

7. Handover with a report

A handover report with meter readings, number of keys and the condition of the rooms – ideally with photos – protects both sides when the tenant later moves out.

What a bad choice costs

A typical calculation shows why care pays off when a tenant stops paying and eviction becomes necessary:

Much of this often cannot be recovered from the tenant. Careful selection, by contrast, only costs time.

Who is looking for a flat in Upper Franconia

Demand varies considerably from place to place:

• Students in Bayreuth, Bamberg, Hof and Coburg: small, furnished or part-furnished flats and rooms in shared flats, usually moving in at the start of the semester in October and April. Often with a parental guarantee.
• Skilled workers and commuters at industrial and logistics locations along the A9 and A93: two- to three-room flats, good transport links, parking space.
• Families: houses and large flats with gardens, close to nurseries and schools.
• Seniors: low-barrier flats with a lift in a central location – a growing target group, see Accessible living.
• Project staff and fitters: fixed-term, furnished, often booked via companies.

If you know your target group, you can word the advert more precisely and save yourself unnecessary viewings. You will find demand data in the market report Demographics.

Comparing applicants: a fair matrix

If there are several suitable applicants, a uniform grid helps. It makes your decision traceable and protects you against accusations of discrimination:

You may decide on the basis of objective criteria. Under the AGG, origin, religion, gender, age, disability or sexual identity must play no role.

Contract design: additional options

• Waiver of termination (Kündigungsverzicht): Both parties waive ordinary termination for up to four years. This provides planning certainty, for example after an expensive modernisation.
• Fixed-term tenancy (Zeitmietvertrag): Only permitted if there is a statutory reason – for example planned owner-occupation or a conversion – and this is stated in writing when the contract is concluded.
• Graduated or index-linked rent (Staffel- oder Indexmiete): sets increases in advance, see Rent increases.
• Furnished letting: a higher rent is possible, but with more wear and tear and more effort. The furniture surcharge must be reasonable.

The legal basis of an ongoing tenancy is explained in our guide Tenancy law.

Data protection in tenant selection

Applicants' documents are personal data. For landlords:

1. Only collect what is necessary at each stage – contact details for the viewing, proof of income and creditworthiness only afterwards.
2. Store documents securely and do not forward them openly by email.
3. Delete or return the documents of rejected applicants promptly, at the latest after a few months (the deadline for possible AGG claims).
4. Do not keep a copy of the identity card if it is not necessary – a visual check is sufficient.

Vacancy or compromise?

Better to search for one more month than to take the wrong tenant – this rule almost always applies. A month of vacancy costs one month's rent; a difficult tenancy costs many times more. But if the flat has been empty for more than two or three months, something is usually wrong: the price, the presentation or the target group. Then an outside view is worthwhile – for example through our letting advice at Letting residential property. How vacancy changes the yield is shown in Calculating rental yield.

The advert that attracts the right tenants

A good advert saves time because it avoids unsuitable enquiries. It contains:

1. Meaningful photos in daylight, tidy, with an exterior view and floor plan.
2. All costs – net cold rent, advance service charge payments, heating costs, deposit, parking space.
3. Mandatory information from the energy performance certificate.
4. An honest description of the location, features and special characteristics (e.g. sloping ceilings, no lift).
5. Move-in date and minimum rental period, if agreed.
6. A note on the documents expected after the viewing.

Avoid wording that could be understood as discriminatory ("Germans only", "no families with children"). It is not permitted under the AGG and damages your reputation.

The flat handover: how to do it right

The handover is the starting point of the tenancy – and the basis for the eventual move-out. Here is how to proceed:

• Clean the flat thoroughly and fix defects beforehand
• Walk through room by room together with the tenant
• Record the condition of floors, walls, windows, bathroom and kitchen, with photos
• Note the meter readings and have the tenant countersign them
• Count the keys and record them in the report
• Hand over operating instructions for heating, kitchen and smoke detectors
• Provide the landlord's confirmation (Wohnungsgeberbestätigung) for residence registration

When there are problems with the tenant

Despite careful selection, problems can arise. It is important to react early and objectively:

Document all events in writing. For serious problems, early legal advice is cheaper than a long dispute. The legal basis is explained in our guide Tenancy law.

Finding tenants with an estate agent: what the service includes

A professional letting service includes determining the market rent, photos and advert, pre-selection and viewings, checking income and creditworthiness, a legally sound tenancy agreement and the handover with a report. For landlords who live far away or have little time, this is a real relief. → Letting residential property