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RENTING

Renting in Germany: What to know about the ‘Mietschuldenfreiheitsbescheinigung’

The German language is known for having exceptionally long words. And here is one that you need to know if you're applying to rent a home.

A flat searching sign in Eimsbüttel, Hamburg.
Eine Wohnungs-Suchanzeige hängt an einer Ampel im Stadtteil Eimsbüttel. +++ dpa-Bildfunk +++

What is the Mietschuldenfreiheitsbescheinigung?

We’re glad you asked. This absolute monster of a word – with nine syllables – translates to ‘certificate of freedom from rent debts’ or ‘rent debt-free certificate.’

Tenants in Germany usually have to prove to their prospective landlord that they reliably pay their rent. And one of the most popular ways of doing this is with a certificate that shows you are free from any rental debts.

It is essentially a piece of paper from your landlord explaining that you have paid all of your rent on time and you don’t have arrears. It has to be signed and can be included in your Bewerbermappe (application portfolio) when you’re applying to rent a flat or house.  

It acts as proof of the creditworthiness of the prospective tenant.

Why do I need this document?

You don’t need it (although some landlords may ask for it), however, it will give you an advantage over other tenants applying for flats. This is essential to know in places like Berlin, Munich and Hamburg where demand for affordable flats far outstrips supply. 

Who issues the certificate?

The rent debt-free document can be issued by the landlord or their property manager (Hausverwaltung). If you are living in a shared flat, it’s also possible to get it from the main tenant (Hauptmieter) who can sign the document for a sub-tenant on behalf of the landlord. 

However, German real estate and renting portal Immowelt says that your landlord is under no obligation to issue the rental debt-free certificate to tenants. 

READ ALSO: How much deposit do I have to pay when renting in Germany?

Flats in Frankfurt, Hesse.

Flats in Frankfurt, Hesse. Photo: picture alliance/dpa | Sebastian Gollnow

Can parents issue a rent debt-free certificate?

Parents cannot issue this document to their children. However, if the parents of a trainee or student vouch for their child, and live in rented accommodation themselves, they can have their landlord issue a rent debt-free certificate for the child.

However, this option doesn’t work if the parents live in their own property. In this case, an alternative could be to include the parents in the tenancy agreement as guarantors. 

What does a rental debt-free certificate say?

It usually contains the following information:

  • Name of the tenant
  • Address of the rented flat
  • Confirmation that there are no rent arrears or information on existing rent debts
  • Confirmation of regular, timely payment
  • Name, address and signature of the landlord/property manager/main tenant

Can I be charged a fee for this?

The question of whether and how much money a landlord can charge for issuing a certificate of freedom from rent debts has not been clarified by law. However, since it is a service that the landlord does not have to provide, there is some evidence to suggest that the landlord can charge for this service.

Since the document is no more than a single piece of paper, you would hope that landlords would oblige. 

READ ALSO: Six confusing things about renting a flat in Germany

But according to Immowelt, a fee of up to €50 would be considered a reasonable fee. Charges on the amount of fees for receipts and certificates may also be regulated in people’s tenancy agreements.

On the other hand, the landlord is free to issue the confirmation free of charge – especially if they are offered a fully completed form by the tenant and only need to check it and sign. 

You can find plenty of samples of a typical Mietschuldenfreiheitsbescheinigung online which you can download and adapt. 

If your landlord refuses to issue this certificate, there are ways to get around it. For instance, you can provide evidence of bank transfers paying for your rent every month. 

How current does the rent debt-free certificate have to be?

There are no legal regulations on how up-to-date the certificate has to be, and it depends on the prospective landlord’s requirements. Credit reports are usually valid for six to six months so this can act as a guideline. 

How important is this Mietschuldenfreiheitsbescheinigung anyway?

The certificate showing you have no rent arrears has no legal significance, and in many cases contains neither information about the duration of the certified period nor statements about the payment of operating costs.

The certificate also doesn’t provide any information about the current or expected future creditworthiness of the prospective tenant.

It serves to give a snapshot of how the tenant has behaved in their last apartment when it comes to paying rent on time. 

As is typical of German bureaucracy, the more documents you can give to a prospective landlord, the happier they will be. They are trying to get an overall impression of the potential tenant and want as much security as possible. 

What happens if I forge the document?

As with any forgery, we’d always advise: don’t do it! 

If the new landlord has any doubts about a a rental debt-free certificate, they can get in touch with the tenant and ask to contact the previous landlord (they can’t contact them without the tenant’s permission). But that could make things a little awkward…

If the certificate of freedom from rent debts is found to be forged by the new landlord, this is considered a breach of contract and is grounds for terminating the tenancy without notice.

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PROPERTY

Germany to subsidise landlords who offer affordable homes

Landlords who rent out properties for less than the market rate are set to get lucrative tax breaks in future, according to new plans to boost social housing in Germany.

Germany to subsidise landlords who offer affordable homes

As the government battles to keep rents affordable in Germany’s ongoing housing crisis, a scheme to boost social housing is set to be reintroduced. 

Echoing a previous initiative that was scrapped in the early 1990s, the non-profit housing law aims to subsidise companies that provide affordable living space on a long-term basis. 

“The non-profit housing scheme is back!,” Housing Minister Klara Geywitz (SPD) told the Stuttgarter Zeitung on Wednesday.

“I am delighted that this important project from the coalition agreement has been successfully implemented.”

According to the regional newspaper, the new instrument is part of the annual tax bill that is set to be voted on in cabinet in Wednesday.

READ ALSO: Can converting offices create housing in Germany?

If the law passes unamended, social enterprises, associations and charitable foundations would be able to provide subsidised housing and benefit from extensive tax breaks. 

To qualify for financial support, landlords must offer their properties permanently below the market rent and make these affordable properties available for people on lower incomes. 

The income limits have been set so that around 60 percent of households in Germany will be able to benefit from the new non-profit housing scheme, said Geywitz. The government expects at least 100 companies to take advantage of the subsidies and provide affordable living space for 105,000 tenants.

“In addition to social housing construction, we are creating another strong pillar for more affordable housing in our country with the public housing benefit,” Geywitz. “This is a good day for all tenants.”

Housing shortages

Tackling Germany’s housing crisis was one of the key manifesto pledges of the centre-left Social Democrats (SPD) when they became the largest party in government in 2021.

In the coalition pact of the SPD, Greens and Free Democrats (FDP), the parties promised to build 400,000 new homes a year, with 100,000 affordable homes among them. 

So far, however, the government has repeatedly failed to meet its targets, blaming sluggish construction rates on high building costs and a lack of skilled labour. 

READ ALSO: Why are Berlin rents soaring by 20 percent when there’s a rent brake?

In 2022, around 271,000 of the planned 400,000 new homes were built, with only 20,000 of these earmarked for social housing. 

According to research carried out by the Pestel Institute in Hannover, Germany currently needs around 800,000 additions homes to keep up with demand. 

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