Disputes between tenants and landlords
Tenants' perspective
Disputes between tenants and landlords over rent increase, utility bills, rental contract termination, etc. are common in Germany.
There are 850,000 advice cases in tenants' associations in Germany in 2022. Advice cases are like tickets raised by tenants' association members for legal advice.
Here is the percentage distribution of the advice cases. [1]
- 41.7% of cases are with regard to utility bills
- 17% of cases are with regard to issues in the property
- 11.5% of cases are about the rental contract.
- 7.9% of cases are about rent increase
- 7.9% of cases in which the landlord terminated the tenant's rental contract.
Many times as an expat we don't know our rights. As a result, we don't say anything about the rent increase or unreasonable costs in the utility bill.
Even if we feel something is fishy, we don't know who to contact for legal advice.
This is where a tenant legal insurance policy or tenants' association membership can help. As an insurance policyholder, you get free legal advice from a lawyer on tenant law matters.
Moreover, legal insurance covers all the out-of-court and in-court costs, irrespective of whether you win or lose the case.
The legal costs to resolve the conflict out-of-court is around couple of hundered euros. But the cost can quickly add up to thousands of euros if the case goes to court.
Thus, many Germans take tenant legal insurance to cover the legal costs. You should also get legal insurance if you are unhappy with your landlord and may expect disagreements in the future.
NOTE: Legal insurance in Germany usually has a waiting period of 3 to 6 months. Disputes that arise during the waiting period are not covered by the insurer. Thus, get legal insurance coverage sooner rather than later. You can compare the legal insurance offers on Check24* or Verivox*. If you want a service in English, check Getsafe* legal insurance and Feather*.
Landlord's perspective
Like tenants, it's not easy for the landlords. 180k cases were filed in court in 2022 related to the disputes between the landlord and the tenant. [2]
The common issues landlords face in Germany are.
- Dispute on rent increase or utility bills.
- The tenant refuses to accept the notice of rental contract termination for personal use.
- The tenant stops paying the rent. In this case, you'll lose rental income and spend thousands in legal fees to evict the tenant.
Thus, it's even more important for landlords to get legal protection insurance. Some legal insurance even covers the loss of rental income.
You can compare the legal insurance offers on Check24* or Verivox*. If you want a service in English, check Getsafe* legal insurance and Feather*.
How much does legal insurance cost?
- Tenant legal insurance: You can't get tenant legal insurance alone. You have to take it with private legal insurance. It costs between 14.6 € and 27.5 € per month (176 € and 330 € per annum).
- Landlord legal insurance: You can get it alone. It costs around 21.75 € per month (261 € per annum) with 250 € deductible.
German word of the day
Vermieterrechtsschutz
Landlord legal insurance
Landlord legal protection insurance (Vermieterrechtsschutzversicherung) covers the costs arising from legal disputes you may encounter as a landlord. For example, legal disputes with tenants or the local authorities.
Mietrechtsschutz
Tenant legal insurance
Tenant legal protection insurance (Mietrechtsschutzversicherung) covers the costs of legal disputes related to the rental property you live in.
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