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Garages and parking spaces are available rental property, especially in the middle of the city. The vehicle should be protected from the weather, as well as from theft or wilful damage. Nevertheless, there are some legal aspects to be observed by both the tenant and the landlord. The following article by quadwalls explains relevant clauses in the rental agreement and – especially important for the investor – when the rental income from garages and parking spaces is subject to sales tax. –
The Lease Agreement
As with every tenancy, a corresponding contract is required when renting a garage, although there are hardly any provisions in the German Civil Code (BGB).
The specific regulations on tenant protection remain in place as long as the garage is rented together with an apartment. Partial terminations are not possible. If, on the other hand, the two rental items are rented out independently of each other, there is a lot of freedom in the design of the contract. Since the regulations on tenant protection do not apply in this case, the rent can be increased slightly on the one hand, and there are hardly any limits to the rent itself on the other. The parties can also freely agree on the notice periods.
However, when drawing up the rental agreement, the landlord should observe some regulations on the garage and sales tax regulations. In contrast, the rules on termination are particularly important for tenants.
Storage In The Garage
From a legal point of view, a garage is classified as usable space, but the tenant is not generally allowed to store everything arbitrarily. Although it offers additional storage space, a garage is not intended to serve as an extension of the basement. For fire protection reasons, only vehicles and related objects are permitted. This includes, for example, tires, child seats, and vehicle spare parts, but also bicycles, motorcycles, and the like.
It is always advisable not to store any unauthorized items in the garage, even if there are no corresponding clauses in the contract. If damage occurs due to improper storage, the owner will be held responsible. If he rents out his garage, clear rules for permitted storage should, therefore, be formulated in the contract.
Subletting A Garage
As is usual with subletting, a garage may only be sublet with the consent of the landlord. Refusing consent, however, is only possible for essential reasons.
Suppose there are no such reasons, and the landlord nevertheless refuses to sublet. In that case, the tenant still has the right to submit an extraordinary termination – at least as long as the garage is the only rental item in the associated contract and not part of a rental agreement.
