Required Disclosures for Landlords in North Rhine-Westphalia

Landlords in North Rhine-Westphalia are required by federal and EU law to provide tenants with a range of information and disclosures. Violations can result in damage claims, fines, or the invalidity of certain contract clauses.

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Overview of Disclosure Requirements

Energy Performance Certificate The energy certificate is mandatory under § 87 of the Building Energy Act (GEG)

Landlords must:

• Actively show the certificate during property viewings (not merely make it available)
• Hand over a copy to the tenant at lease signing at the latest
• Include energy data (energy demand value, energy efficiency class) in property listings

Fine: Violations regarding the energy certificate can result in fines up to €15,000.

Energy certificates are valid for 10 years and must be renewed upon expiration.

Prior Rent Disclosure (Rent Cap Areas) In the 57 municipalities in NRW where the rent cap (Mietpreisbremse) applies, landlords must provide information about the prior rent upon written request from the tenant (§ 556g(3) BGB). The federal Mietpreisbremse has been extended until December 31, 2029. Violations related to the rent cap can result in fines up to €50,000.

This is relevant when the landlord claims an exemption from the rent cap. Possible exemption grounds:

• New construction (first occupancy after October 1, 2014)
• detailed modernization (first occupancy after renovation)
• Prior rent already exceeded the rent cap limit

The landlord must proactively disclose the exemption basis in text form before signing the lease.

Operating Cost Statement

If operating cost prepayments are agreed, the landlord must issue an annual statement:

• Billing period: Typically 1 year (calendar or fiscal year)
• Deadline: 12 months after the end of the billing period (§ 556(3) BGB)
• Missed deadline: Landlord loses the right to demand additional payment; tenant retains refund rights

The statement must:

• Itemize all billed positions individually
• State the allocation method and total costs
• Credit the tenant's prepayments

CO₂ Cost Allocation (Since 2023) Since January 1, 2023, the CO₂ Cost Allocation Act (CO2KostAufG) requires CO₂ costs from heating fuel to be shared between landlord and tenant using a tiered model based on the building's energy efficiency:

The landlord must break down CO₂ costs annually alongside the operating cost statement and document the allocation.

Modernization Notices Before planned modernization measures, the landlord must inform the tenant:

• At least 3 months before the start, in writing (§ 555c BGB)
• Include the type, scope, start date, expected duration, and anticipated rent increase
• Inform the tenant of their special termination right (until the end of the second month after notice, § 555e BGB)

Known Defects The landlord must disclose any known material defects of the rental property before or at lease signing

Concealed defects may:

• Entitle the tenant to rent reduction
• Give rise to damage claims
• Void the landlord's limitation of liability

Typical defects requiring disclosure: mold, known construction flaws, noise sources, persistent odor issues from the surroundings.

Best Practices for Landlords

• Create a handover protocol with photos, signed by both parties
• Keep the energy certificate current and bring it to all viewings
• Issue operating cost statements on time and in full
• Factor the CO₂ allocation into your operating cost calculations from the start
• Inform tenants in writing about rent cap exemptions before the lease is signed

Landager helps landlords manage disclosure documents, track deadlines, and handle operating cost statements.

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