Tenancy agreement, deposit, handover report: Avoiding disputes

Article L-0151 · 27.10.2026 · 7 min read · Joé Christian Ewrard

Why these three documents belong together

The tenancy agreement sets out what was agreed. The deposit record documents what security was actually provided and how it was held. The handover report records the condition in which the tenant took possession of the property. Only together do they create reliable documentation.

A typical dispute illustrates this clearly: After the tenant moves out, the landlord discovers damaged doors. Although the tenancy agreement generally requires the tenant to treat the property with care. Without a meaningful handover report, however, it is difficult to prove whether the damage was already present when the tenant moved in. If clear documentation of the deposit is also missing, this creates a further dispute over possible deductions.

The documents are not intended to create a culture of mistrust. They protect both parties. The tenant does not have to be held responsible for pre-existing damage. The landlord can attribute new damage more precisely. Good documentation makes subsequent discussions less contentious.

What a clear tenancy agreement should contain

A tenancy agreement must be tailored to the actual property. An unchecked template may overlook important particularities or contain provisions that are no longer legally valid. Especially in the case of older houses, self-contained flats, gardens, garages, parking spaces or outbuildings included in the tenancy, a general description is often insufficient.

The contracting parties and the rental property, including all rooms and areas included in the tenancy, should be clearly identified. The start of the tenancy, the amount of rent, operating costs, payment method and the use of communal facilities should also be clearly regulated. For keys, fixtures, garden maintenance, pets or a kitchen included in the tenancy, it should be clear what was agreed and who owns which items.

Operating costs must be validly agreed if the tenant is to bear them. If advance payments are agreed, an annual statement must generally be provided. Statutory deadlines apply to the statement and any objections. The relevant provisions can be found in [Section 556 of the German Civil Code (BGB)](https://www.gesetze-im-internet.de/bgb/__556.html). If there is any uncertainty, professional advice should be sought to determine which costs may be passed on to the tenant in the specific case.

Particular caution is required with fixed-term agreements, cosmetic repairs, minor repairs and individual supplementary agreements. A fixed term for residential accommodation is not valid solely because the agreement specifies an end date. The law requires a permissible reason that is communicated in writing when the agreement is concluded. Standard clauses may also be invalid if they place the tenant at an unreasonable disadvantage. If there are any legal doubts, the agreement should be reviewed by a lawyer or a qualified advisory service before it is signed.

What must be documented for the tenancy deposit

The deposit is not additional income for the landlord. It provides security for potential claims arising from the tenancy. These may include, for example, outstanding rent payments, justified additional charges or damage caused by the tenant. Whether a claim actually exists must be assessed on a case-by-case basis and substantiated in a transparent manner.

For residential property, an agreed deposit may not exceed three months’ net rent excluding service charges. The tenant may pay a cash deposit in three equal monthly instalments. The landlord must keep the money separate from their own assets; the returns belong to the tenant and increase the security deposit. These requirements are set out in [Section 551 of the German Civil Code (BGB)](https://www.gesetze-im-internet.de/bgb/__551.html).

The documentation includes the deposit agreement in the tenancy agreement, confirmation that payment was actually received and proof that the deposit is being held in accordance with the law. In the case of a guarantee or another agreed form of security, it should also be clearly recorded who provides the security, what it covers and under what conditions a claim can be made against it.

Problems arise if the deposit is handed over in cash without a receipt being issued. A transfer to an ordinary private bank account without any further documentation is equally inadvisable. Years later, the parties may have different recollections of the amount, the date or any repayments. Proper documentation prevents this question of proof from arising.

What a handover report really needs to achieve

A handover report should describe the property’s actual condition. General wording such as “handed over in good order” or “renovated condition” is of little help if a dispute later arises over a specific scratch, moisture damage or a damaged fitting.

All rooms and areas should be recorded, including the basement, attic, garage and outdoor areas, insofar as they are included in the tenancy. It is advisable to include details about floors, walls, windows, doors, sanitary fixtures, built-in features and visible technical installations. Any existing defects are described with their precise location and visible extent. Assumptions about the cause should not be included in the report unless they have been professionally verified.

Photographs supplement the description. They should first show an overview of the room and then close-ups of relevant areas. It is important that they can be clearly attributed to the rental property and the handover date. The images should be kept together with the report and made accessible to both parties. Personal documents or other unnecessary data should not appear in the images.

Meter readings, the number and type of keys handed over and any outstanding work are also recorded. Agreements such as “landlord will arrange for the defective roller shutter to be inspected” should be recorded together with the responsible party and the next steps. Both parties read the completed report and receive identical copies. It should only be signed once all additions and corrections have been entered.

How to conduct the handover without unnecessary pressure

Enough time should be allowed for the handover. An inspection conducted among moving boxes, tradespeople and waiting helpers can quickly result in details being overlooked. Daylight makes it easier to assess walls, floors and windows. Technical installations can only be documented if the necessary areas are accessible.

The inspection follows a set sequence. Each room is inspected, described and photographed in turn. Ancillary rooms, outdoor areas, meters and keys are then covered. This reduces the risk of overlooking, for example, the basement storage room, a garage door or a garden tool included in the tenancy.

If the tenant discovers a defect, the landlord should not rush to assess or downplay it. First, the visible condition is recorded objectively. It can then be clarified whether a repair is necessary, who will arrange it and how further communication will proceed. This separation between documentation and legal assessment prevents many unnecessary disputes.

If one party refuses to sign, the report should not subsequently be presented as having been jointly confirmed. In that case, unilateral documentation that is as precise as possible, with photos and, where applicable, a person present as a witness, is advisable. The evidentiary value of this documentation in the event of a dispute is ultimately a matter for the competent courts to assess.

What is often additionally important in the Eifel and around Trier

Rental properties vary considerably in the Eifelkreis Bitburg-Prüm, Trier-Saarburg, the Vulkaneifel and along the border with Luxemburg. In addition to city apartments, there are detached houses, former farmhouses, self-contained apartments and properties with larger outdoor areas or outbuildings. A standard report for an apartment often provides only an incomplete record of such properties.

For a house, for example, the heating system, fuel supply, wood-burning stove, shed, garage, garden, waste bins and multiple utility meters may be relevant. In older buildings, known signs of wear or previously observed areas of damp should be documented particularly carefully. This is not an assessment of the cause, but a joint record of the visible condition.

Cross-border living arrangements are also common in the region. Those who work in Luxemburg and live in the Eifel may have different availability or payment arrangements. The agreement should therefore clearly record reliable contact details, an address for service and the payment method. The general legal requirements nevertheless apply when selecting tenants; origin or place of work is no substitute for an objective credit check.

Why moving in and moving out should be documented in the same way

The same structure is used when moving out as when moving in. Rooms, ancillary areas, meter readings and keys are recorded again. Ideally, the original report and the photos taken at the time are available. This makes it possible to distinguish between what was already present, what may be due to normal use and where new damage may have occurred.

Not every change automatically constitutes damage for which compensation is payable. Homes are subject to wear and tear through use in accordance with the tenancy agreement. Conversely, damage does not become ordinary wear and tear solely because the tenancy lasted a long time. The legal classification depends on the specific circumstances and should be reviewed by a qualified professional in the case of larger claims.

There is no general statutory deadline for returning the deposit that conclusively resolves every case. The landlord may examine legitimate claims, but should do so without avoidable delay. An appropriate portion may be retained in certain circumstances due to outstanding service charges. Withholding the entire deposit is not automatically justified. Legal advice is recommended in the event of disagreement.

Which mistakes can become particularly costly later on

A common mistake is to conflate the agreement with the handover report. The agreement sets out the obligations. The report describes the condition at a specific point in time. An additional obligation should not subsequently be inserted inconspicuously into a handover report if it actually constitutes an amendment to the agreement.

Verbal side agreements are equally risky. Statements such as “We will sort out the garden between ourselves later” or “You can take over the fitted kitchen at some point” may seem straightforward in a personal conversation. However, after a change of property ownership, a change of personnel in the property management company or several years, the shared basis of recollection is often missing.

Even a large number of unorganised photos is no substitute for clear documentation. What matters is not how many files exist, but whether they can be linked to a room, a date and a specific condition. A complete, comprehensible record is more helpful to both parties than scattered messages, images and handwritten notes.

Before the next letting, create a joint property file for the tenancy agreement, proof of the security deposit, handover reports and the corresponding photos. Then check each room to ensure that the agreement and documentation match the actual property. PRIOCASA can assist landlords in the Eifel and around Trier with preparing and organising the letting; specific legal and tax matters should be handled by the appropriate professional advisers.

Frequently Asked Questions

Is a handover report required by law?

For a standard property handover, there is generally no legal requirement to prepare a report. Nevertheless, it is an important piece of evidence because it documents the condition jointly established by both parties. Any disputed wording should be revised before the report is signed.

Does the tenant have to sign a handover report?

A handover report should only be signed if it accurately reflects the condition established. No one should confirm an unclear or demonstrably incorrect statement. If the parties cannot agree on a joint version, each side can document its observations separately.

Can the landlord retain the entire security deposit because of damage?

Not automatically. Any amount retained must be based on reasonable potential claims. If only part of the amount is disputed, it should be determined whether the undisputed balance can be paid out. In the event of a dispute, a lawyer should assess the specific claim.

Are photos sufficient without a written handover report?

Photos can show the condition but do not always explain the location, time and context. A precise description combined with corresponding images and a confirmed handover date provides stronger evidence. The original files should be stored without modification.

Can a tenancy agreement simply be taken from the internet?

A template can serve as a starting point, but it will not necessarily suit the property or comply with current law. Invalid clauses do not become valid simply because both parties sign the agreement. Special agreements with legal or tax implications should be reviewed by a lawyer, notary or tax adviser.

Topics: tenancy agreement, security deposit, handover report, letting, property handover, landlords Eifel, real estate Trier, property management

Responsible for this article: Joé Christian Ewrard — agency owner & Real Estate Agent IHK, PRIOCASA Immobilien & Finanzservice. Last updated: 27.10.2026. The draft was created with the support of artificial intelligence and was reviewed and approved before publication (AI Transparency). This post does not replace legal or tax advice; for individual questions, please contact a notary, lawyer, or tax advisor.

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