Commission when letting
Commission when letting
Since the "Bestellerprinzip" (the party who instructs the agent pays), the commission for a letting is paid by whoever instructs the agent, usually the landlord. The law limits the commission to a maximum of two months' net rent plus VAT. It only becomes due once the tenancy agreement has been signed.
In short
Who pays the agent's commission when letting?
Since June 2015 the Bestellerprinzip applies: whoever commissions the agent pays, which is usually the landlord. The commission is at most two months' net cold rent plus VAT and is only due if a lease is signed.
The rules
Three things landlords should know about the commission
Commission on lettings follows different rules from commission on sales.
Since 2015 the rule has been: whoever instructs the agent pays. For lettings, that is you as the landlord. The tenant may not be asked to pay, not even a share.
The German Housing Brokerage Act (Wohnungsvermittlungsgesetz) caps the commission at two months' net cold rent plus VAT. More is not permitted; less is a matter of negotiation.
If no tenancy agreement is concluded, no commission is due. Valuation, exposé, viewings and applicant checks are then at our risk.
Still thinking it over? Then let's start with the rent.
A free assessment of the rental value places you under no obligation. Afterwards you will know what your property can realistically earn and can decide in your own time.
Process
How the commission is calculated, step by step
An example: your apartment is let for a net cold rent (rent excluding utilities) of 800 euros.
The basis is the agreed monthly rent excluding service charges, 800 euros in this example.
Up to two months' net cold rent, so in this example up to 1,600 euros plus VAT.
Only once the tenancy agreement has been signed by both parties. Until then, you pay nothing.
The commission is deductible as an income-related expense against your rental income. Your tax adviser can clarify the details.
Service
What the commission includes
You pay for being found a vetted tenant.
- 01Rental value & strategyA realistic rent, taking into account the rent index, the rent cap (Mietpreisbremse) and market conditions.
- 02Property brochure (exposé) & marketingProfessional photos, copy, listings on the relevant portals.
- 03Enquiries & pre-selectionAll enquiries come to us. You only see vetted applicants.
- 04Credit checkSelf-disclosure form, SCHUFA, proof of income, confirmation of no rent arrears.
- 05Viewings, contract & handoverIndividual appointments, tenancy agreement with annexes, handover report with meter readings and keys.
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