Editorial update: · Richter Immobilien-Transaktionen
A self-contained flat in your house can generate rental income while you continue living at home. A successful arrangement needs more than spare space: both households need privacy, understandable bills and a contract that reflects the building.
Planning to let a property in Düsseldorf or NRW? Discuss your letting
Decide whether sharing the building suits your life
An unused flat can contribute to household finances and put existing space to work. It also brings another household into your immediate surroundings. You own the property, but your tenant has a home and an independent daily life. Before considering advertisements, think about the changes you are comfortable accepting: more activity around the entrance, different working hours, visitors and shared access routes. Rental income is only one part of this decision.
This guide concerns a separate residential flat in Germany, particularly North Rhine-Westphalia, in a building where the landlord also lives. The German term Einliegerwohnung may describe a smaller ground-floor or basement-level flat with its own kitchen and bathroom. It does not itself confer special legal privileges. A furnished room inside the landlord’s own flat is a different arrangement. Holiday accommodation and genuinely temporary use also require separate consideration. Rules for lodgers in other countries should not be applied to a German tenancy.
Walk through an ordinary day on a floor plan. Can each household enter and leave without crossing the other’s private rooms? Does the proposed tenant’s terrace face your bedroom window? Is the laundry area accessible only through your private cellar? A shared staircase can work well. Unclear access through personal living areas creates a much more difficult relationship. Mark exclusive tenant areas, your own areas and shared spaces separately.
Discuss the proposal with everyone who must make the ownership decision and with those who already live in the house. A letting arrangement that looks attractive financially can become uncomfortable if another household member expects the property to remain entirely private. For the wider sequence of preparation, marketing and management, see our guide to letting a house.
Establish lawful residential use and a suitable condition
Start with the building records and available approval documents. The question is whether this particular space can lawfully be used as the proposed dwelling. A former hobby room, a basement previously used by your children or years of informal occupation by relatives does not automatically answer that question. Compare the authorised plans with the present layout. Adding cooking facilities may change how a space is used without resolving the necessary building-law requirements.
Under section 60 of the NRW Building Code, construction, alterations and changes of use generally require permission unless a statutory exception applies. An exemption from a procedure does not remove the substantive requirements. Where records are unclear, consult the responsible building authority and a qualified planning professional. Missing paperwork establishes a need for clarification; it does not, by itself, prove either unlawful use or a right to let.
Inspect daylight, ventilation, damp, escape routes, smoke alarms and safe access. These issues are particularly important below ground level. A freshly painted room is not necessarily a suitable home. Investigate persistent smells or damp patches before paying for decorative work. Show the actual window positions and room level in photographs. Prospective tenants need to understand whether they are viewing a basement-level unit, a ground-floor flat or something else.
Prepare the energy performance certificate as well. Where the statutory duty applies, it must be shown by the viewing and provided after the contract is concluded, as set out in section 80. Commercial advertisements must contain the relevant energy information when a certificate is available. Set a firm move-in date only when required works and the legal basis for residential occupation are sufficiently clear.
Calculate usable income rather than the headline payment
Assess rent using the actual flat: location, size, natural light, equipment, access and condition all matter. A private entrance and sheltered outdoor space offer a different experience from a narrow shared corridor and limited daylight. If you use a local rent table, first establish whether it covers this type of dwelling. Multiplying floor area by an unrelated advertised rate does not produce a reliable or necessarily lawful rent.
Normal residential rent restrictions can apply even though the tenant lives under your roof. Where Germany’s rent brake applies, the local comparable rent and any statutory exception must be examined. The description Einliegerwohnung and the landlord’s presence do not create an automatic exemption. The starting point is section 556d of the German Civil Code, together with the current designation of affected areas. Our guide to calculating rent explains how to approach the assessment.
Consider an illustrative calculation, not a claim about market rents. After a separate rent assessment, assume a 50-square-metre flat is let for €650 in net basic rent and €180 in monthly operating-cost advances. The tenant pays €830 each month. A full year of basic rent would be €7,800. Allowing one month of basic rent for an assumed vacancy and €1,200 as a planning reserve leaves €5,950 before tax, finance costs and other expenses that cannot be passed on. The reserve is an example, not a standard amount every property needs.
The €180 advance is not extra disposable income. It is money paid towards costs that must be reconciled. Treat initial spending on repairs, meters or locks separately from recurring expenses. Keep records that distinguish the rented flat, your own home and shared parts of the property. A tax adviser can assess the treatment of these costs in your circumstances; a general promise of tax savings is not a sound basis for deciding to let.
Design a billing system both households can understand
Before agreeing the tenancy, record how electricity, cold water, hot water and heating reach each flat. Identify separate supply contracts, shared systems, meters and accessible reading points. Ask an electrician or heating specialist to check whether supposedly separate circuits serve only the intended flat. Outdoor sockets, garden taps and laundry equipment can otherwise leave one household paying for the other’s use. A meter is useful only if you understand what it measures.
Section 43(2) of the NRW Building Code contains a requirement for individual water meters and an exception for disproportionate additional effort in certain changes of use. Have its application to your existing building assessed. The building’s age alone proves neither a universal obligation to retrofit nor a general exemption. Regardless of the precise legal position, reliable measurement can make the allocation of everyday costs easier to explain.
For shared central heating, section 2 of the Heating Costs Ordinance is particularly relevant. Different contractual arrangements can take precedence in a building with no more than two flats where the landlord occupies one. This is not an automatic exemption without an appropriate agreement. Specify how heating and hot water will be charged. If you later move out or another flat is created, reassess the arrangement. Other mandatory provisions, including applicable carbon cost sharing, are not simply removed by this exception.
Distinguish advances from an effectively agreed fixed operating charge. Advances require annual accounts. Under section 556 of the Civil Code, the statement generally must reach the tenant within twelve months after the accounting period ends. A late additional demand is normally excluded if the landlord is responsible for the delay. Choose appropriate allocation methods, observe mandatory consumption rules and exclude your own household’s share. Administration and repairs are not ordinary recoverable operating costs. Preparing a sample statement before signing is a practical way to find gaps in the proposed system.
Make the agreement fit the actual house
Describe the rented rooms, storage space, parking and any outdoor area precisely. A terrace for the tenant’s exclusive use is different from a shared garden. Record what equipment is included and, for a fitted kitchen, identify appliances and their condition. Features advertised as part of the letting should not become uncertain extras when the keys are handed over. A clear plan attached to the agreement can prevent misunderstandings about boundaries.
Separate basic rent, the operating-cost arrangement, allocation methods and the starting date. Check that the house rules, plan and other attachments agree with the main contract. A general clause about the laundry room should not contradict a specific promise made during the viewing. Obtain legal advice on unusual provisions, especially where access rights, shared technical equipment or maintenance duties are involved. Providing and maintaining a home suitable for the agreed use remains a fundamental landlord obligation under section 535.
In the example with €650 monthly basic rent, the agreed security is generally limited to €1,950. A cash deposit can be paid in three equal monthly instalments of €650, with the first due at the start of the tenancy. It must be held separately from the landlord’s own assets. These protections in section 551 also apply to private landlords letting a flat in their home. The deposit is not a fund for your initial refurbishment.
Do not choose a fixed term simply to test whether you enjoy living alongside a tenant. An ordinary fixed-term residential tenancy needs a statutory reason communicated in writing when the agreement is concluded. Otherwise it is generally treated as indefinite. A vague intention that you might want the flat back later does not establish the required reason. Furnishing the whole flat does not automatically avoid section 575 or normal residential protection.
Select a tenant fairly and organise a careful handover
An accurate advertisement makes selection easier. Explain the shared entrance, the flat’s position in the house, the outdoor space actually available and the charging system. A person who learns about access through the laundry area only at the viewing has received an incomplete picture. Explain how shared facilities work without turning your preferred daily routine into a compulsory lifestyle for the incoming household.
Collect applicant information in stages. Necessary contact and organisational details are the focus at viewing stage. Once someone expresses a concrete wish to rent, proportionate questions about occupancy and ability to pay may become appropriate. Supporting income documents and, where necessary, a targeted credit report belong to the assessment of the selected first-choice applicant shortly before signing. Do not request the applicant’s complete credit-agency data copy under Article 15 GDPR. The German data protection authorities’ guidance explains the stages. Sharing a building does not justify questions about pregnancy or religion.
Use concrete information to assess reliable communication and whether the proposed use fits the dwelling. Assumptions about someone’s origin or lifestyle do not establish whether the tenancy will work. The guide to finding tenants covers a structured selection process in more detail. Keep sensitive documents away from shared family folders or places where visitors can see them.
At handover, inspect the flat and included ancillary rooms together. Record visible defects, keys, meter readings and inventory. Show the tenant the shut-off valves, electrical panel and heating controls. Agree how faults should be reported and who is available for an urgent technical problem. A record of specific observations is more useful than a blanket statement that everything is perfect.
Keep neighbourly contact separate from landlord access
Living nearby can make repairs and communication convenient, but it can also blur boundaries. A conversation by the front door is not a reliable record of an agreement about costs or work. Establish a normal communication channel and confirm significant decisions in a form both parties can refer to. Neither household should feel that every encounter in the garden might turn into an inspection or an obligation to socialise.
The tenant has their own home and controls their daily life within contractual and legal limits. Ownership does not create a general right to enter whenever you wish. Necessary work should normally have a specific reason and an agreed appointment; genuine emergencies require separate treatment. A retained key is not a routine access pass. Where possible, arrange access to shared equipment so that private rooms do not need to be crossed without notice.
Agree the few matters that genuinely affect both households: keeping routes clear, bin use, laundry facilities, bicycle storage and access for tradespeople. In the garden, specify the boundary between shared use and exclusive space. A simple marked plan is often more helpful than an expectation that everyone will somehow agree later. Describe any gardening obligations precisely and have their legal validity checked where needed. General expectations of helping around the house do not transfer all ownership responsibilities.
When a problem arises, describe observable events rather than judging the other person’s character. A blocked driveway can be identified by place and time. Noise may have a practical cause, such as an incorrectly positioned washing machine. Try to resolve those causes before treating an everyday disagreement as a tenancy-ending dispute. Predictable billing and dependable repairs make a substantial contribution to a workable relationship.
Understand the special termination route before relying on it
Section 573a of the Civil Code is especially relevant to this arrangement. If the landlord lives in the building and it contains no more than two flats, the legislation can permit termination without the legitimate interest normally required under section 573. The trade-off is an additional three months of notice. Actual conditions matter more than the property’s label. If there may be a third separate unit, have its legal classification checked before relying on this route.
Combining this extension with the statutory basic periods generally produces six months’ notice, increasing to nine after five years and twelve after eight years from the tenant’s receipt of the dwelling. The date notice is received, contractual restrictions and individual circumstances still need checking. The underlying periods are in section 573c. This is neither immediate termination nor a guarantee that the flat will be vacant on a chosen date. Ordinary termination based on a separate legitimate interest is a different route with different requirements.
The termination notice must state that it relies on the conditions in section 573a(1). Statutory written form must be observed; an ordinary message or a discussion on the stairs is insufficient. The tenant’s potential hardship objection under section 574 also remains relevant. Check the form, deadlines and information about that right. A lawyer should review an intended termination against the actual agreement and living arrangements before it is sent.
Your initial decision should therefore be based on whether a continuing tenancy suits you. Once lawful residential use, costs and household boundaries are clear, the next steps become practical. Through the landlord enquiry form, you can describe the flat, its location and your intended letting date. Building authorities and planning professionals handle questions of lawful use; lawyers assess uncertain contractual and termination issues. This division of responsibilities helps you prepare a workable letting without relying on a supposed shortcut to vacant possession.
