rental prepayment as a lump sum
December 3, 2014 | 50,00 EUR | answered by Rechtsanwältin Jasmi Jasmin Pesla
How do I properly set up a contract for a rental prepayment of 10 years? It should include the following information: Amendment to the lease agreement dated 1.07.2011, the following agreement is made:
The tenant will pay a one-time payment for the rental period from 01.01.2015 to 31.12.2025. The landlord agrees not to sell or rent out the apartment for the period from 01.01.15 to 31.12.15.
1. This agreement also applies to successors in interest, including the landlord's heirs.
2. The landlord or successor in interest agrees that in the event of the tenant's death before the end of 2025, the unoccupied portion of the rental prepayment will be refunded to the tenant's legal heirs.
3. The landlord agrees to refund the security deposit of 2 months' rent amounting to €700 paid on 30.06.11 to the tenant.
4. An increase in the rent until 2025 is excluded.
Dear inquirer,
I will answer your inquiry as follows:
§ 556b BGB, according to which the rent is to be paid monthly in advance, is not a mandatory provision, but only a "legal model" (Federal Court of Justice, judgment of 5.11.1997 - VIII ZR 55/97). According to this: "According to the principle of contractual freedom, the parties can not only agree on the advance payment of the rent, but also on its payment in a lump sum.
The method of payments is therefore a matter for the contracting parties. Therefore, they can agree on the payment of a lump sum for the entire period or payment of annual total amounts. The amount of the advance rent payment and the offsetting with the rent are freely negotiable.
However, it should be agreed that only the basic rent without any additional charges is covered by the advance rent payment (so not the incidental costs, which can be subject to constant changes).
In order to determine the rent amount and the period of an advance rent payment, the estimation of future rent developments and the condition of the building must be assessed.
Whether the landlord sells the apartment (or rents it out otherwise) is not relevant, as the contractual agreement would pass on to the new buyer.
It would also easily pass on to successors such as heirs. You can still take over the text for clarification purposes. Regarding point 2, it should be noted that she would still be obligated to repay the unused portion even if the tenant does not pass away. Therefore, simply remove the phrase "in the event of the tenant's death."
Otherwise, the wording raises no concerns.
Also, consider tax-related peculiarities regarding the rent amount.
The agreement on an advance rent payment must be made in writing.
I am available for further questions.
