The Rent To Rent Contract is designed for use in the German property market where an operator seeks to lease a property from the owner with the primary intention of subletting it for profit. This arrangement is particularly common in urban areas where there is high demand for flexible accommodation solutions. The document incorporates essential provisions from German tenancy law (primarily the BGB), commercial law, and relevant property regulations. It is structured to protect both the property owner's interests and the operator's business model, including detailed terms for maintenance, insurance, compliance with local regulations, and subletting permissions. The agreement is particularly relevant for commercial operators looking to expand their property portfolio without property acquisition, while providing property owners with a secure, professionally managed letting arrangement.
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1. Parties: Identification of the principal landlord, the intermediate tenant (rent-to-rent operator), including full legal names, addresses, and registration details if companies
2. Background: Context of the agreement, explaining the rent-to-rent business model and main purpose of the arrangement
3. Definitions: Key terms used throughout the agreement, including Property, Term, Rent, Operating Costs, and Sublease terms
4. Grant of Lease: Formal grant of the lease including the property description and permitted use
5. Term and Renewal: Duration of the agreement, commencement date, and any renewal options
6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and rent review mechanisms
7. Operating Costs and Utilities: Allocation of responsibility for operating costs, utilities, and service charges
8. Subletting Rights and Obligations: Explicit permission and conditions for subletting, including minimum terms and requirements
9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
10. Insurance Requirements: Required insurance coverage for both the property and business operations
11. Compliance with Laws: Obligations to comply with relevant laws, regulations, and building codes
12. Default and Remedies: Consequences of breach and available remedies for both parties
13. Termination: Grounds for termination, notice requirements, and consequences
14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes
1. Guarantees: Required when additional security is needed, specifying guarantee terms and guarantor obligations
2. Furniture and Fittings: Used when the property is let furnished, including inventory and maintenance responsibilities
3. Property Management Services: When specific property management duties are included in the arrangement
4. Energy Efficiency Improvements: When energy renovation or improvement works are planned or required
5. Change of Control: For corporate tenants, addressing changes in company ownership or control
6. Break Clause: When early termination options are agreed upon
7. Rent Review Mechanism: Detailed rent review procedures when complex review mechanisms are required
8. Special Use Conditions: For properties with specific use restrictions or requirements
1. Property Description: Detailed description of the property including floor plans, boundaries, and included areas
2. Inventory List: Detailed list of furniture, fixtures, and fittings if provided
3. Condition Report: Initial condition of the property with photographs and descriptions
4. Operating Costs Breakdown: Detailed breakdown of all operating costs and their allocation
5. Maintenance Schedule: Regular maintenance requirements and schedules
6. Approved Form of Sublease: Template or minimum terms for subleases to be granted
7. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
8. Building Rules: Specific rules and regulations for the property and its use
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