Long-term letting from the owner’s side: contract, deposit, maintenance
What belongs in a tenancy agreement, and which items most often cause a dispute when they are left undefined.
Long-term letting brings in less than seasonal, but it also brings considerably less work. The condition is that the contract is written so there is nothing left to argue about later.
What the contract must contain
Beyond the basic details, the contract should precisely define: the rent and the payment date, what is included and what is not, the amount of the deposit and the conditions for returning it, the term and the notice period, and who bears which maintenance costs.
Ambiguity over whether utilities are included is the most common source of misunderstanding. Write it down explicitly.
Deposit
A deposit equal to one month's rent is standard. Its purpose is to cover damage and unpaid bills — not the final month's rent.
If you do not want the deposit used as the last month's rent, that has to be written down.
Handover record
This is the item most often skipped, and the one that helps most.
At move-in, make a record with meter readings, a list of furniture and appliances, and photographs. Both parties sign it. At move-out the same document is used for comparison.
Without a handover record, an argument about whether damage was already there has nothing to stand on.
Maintenance
Draw a line between routine and capital maintenance. Replacing a bulb and clearing a drain are the tenant's responsibility. A failed boiler, roof or installation is the owner's.
The easiest way to set the line is by amount — for example, repairs below a stated sum are borne by the tenant.
Declaring the income
Rental income is subject to declaration and tax. If you let as a private individual, check the current rate and the filing procedure with the tax authority or an accountant.
A proper declaration is also a precondition if the tenant needs residency on the basis of the tenancy agreement.
