Required Disclosures and Notices for Commercial Landlords

Commercial landlords in Hesse have a duty of disclosure regarding the physical and legal state of the property. Failing to provide accurate information on energy performance or zoning can lead to costly litigation and lease termination.

Although commercial tenancy law in Hesse is largely governed by freedom of contract, several statutory disclosure obligations still apply. These arise from energy law, contract law, and industry-specific regulations.

Key Disclosure Obligations

1. Energy Certificate

Applies to Commercial Properties The energy certificate obligation applies to commercial properties in Hesse as well

When leasing, the landlord must:

• Present the certificate at the latest during viewings
• Include energy performance data in property listings (certificate type, energy demand/consumption, year of construction, heating system)
• Provide a copy after signing

Fines Violations carry fines of up to €10,000 (GEG § 108).

2. Pre-Contractual Disclosure Duties

Despite contractual freedom, landlords have extensive pre-contractual disclosure obligations (culpa in contrahendo, BGB § 311 (2)):

Property Defects The landlord must inform prospective tenants about material defects relevant to the intended use:

• Known moisture or mold issues
• Structural problems or construction defects
• Hazardous materials (e.g., asbestos in older buildings)

Contamination and Environmental Issues For properties with known or suspected soil contamination, there is a heightened disclosure duty

Concealing such issues can entitle the tenant to rescind the contract and claim damages.

Public Law Restrictions The landlord should disclose known restrictions:

• Zoning regulations that limit the intended use
• Heritage protection requirements for historic buildings
• Planned construction in the surrounding area (if known)
• Missing permits for the intended commercial use

3. Operating Cost Transparency

Contractual Basis Unlike residential law, there is no mandatory statutory framework for commercial operating cost pass-through

The allocation is governed by the lease agreement:

• Recoverable costs must be individually listed or defined by reference to the Operating Costs Ordinance (BetrKV § 2)
• In commercial leases, management fees, center management, and expanded insurance can also be recovered
• The billing period and deadline should be contractually specified

Transparency Requirement Operating cost statements must be comprehensible

The tenant has a right to inspect original receipts.

4. VAT Option (Umsatzsteueroptierung) If the landlord opts for VAT taxation (UStG § 9), this must be clearly communicated. The option is only possible if the tenant uses the premises for VAT-liable business activities. The lease should include clear VAT provisions, as changes in the tenant's tax status can create a retrospective VAT correction risk for the landlord.

5. Fire Safety Commercial landlords in Hesse should disclose the fire safety status of the premises:

• Existing fire protection equipment (extinguishers, sprinklers, smoke detectors)
• Escape and rescue routes
• Current fire safety certificate - especially for hospitality or industrial use

Best Practices for Landlords

1. Present the energy certificate proactively during marketing
2. Document pre-contractual disclosures in writing
3. Check contamination registers - especially for commercial sites in the Rhine-Main area
4. Detail the operating cost allocation clearly in the lease
5. Clarify the VAT option upfront and review it periodically

Landager helps you manage all disclosure obligations for your commercial properties in Hesse with structured workflows and deadline reminders.

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