Parking Rental Agreements in Germany

Legal basis and contract format

There is no specific law dedicated to garage rentals. Instead, the rules beginning with Section 535 BGB, which apply to property leases in general, are used.

This means that, from a legal standpoint, the long-term rental of a parking space is treated the same as a standard real estate lease agreement.

• The identities of both parties
• The property address and a description of the space
• Monthly rental fee and payment terms
• The duration of the rental agreement/contract
• Rules and limitations regarding use, e.g.:
  • Suitable for storage (e.g. furniture, moving boxes, etc.)
  • De-registered vehicles permitted
  • Repairs and tinkering permitted
  • LPG (CNG) vehicles permitted
  • Smoking permitted
  • and so on. Also see “Landlord's rights: Right to Set Usage Rules”.

Contract duration and termination

• For open-ended rentals in Germany, the standard notice period is 3 months, unless otherwise specified in the contract. To ensure the contract is terminated by the end of the month, notice must be given by the 3rd working day of the current month. However, since garages and parking spaces are not considered residential property, greater flexibility is allowed. The parties can agree on any notice period, such as 1 month — a fairly common practice.
• If the contract is for a fixed term, it will automatically expire on the specified date, and cannot be terminated early unless:
  • both parties agree to it
  • or there is a “compelling reason” (wichtiger Grund), such as:
    • for the tenant: serious defects in the space (e.g. flooding, danger to property), or breaches by the landlord.
    • for the landlord: repeated non-payment, deliberate damage, misuse of the space, etc.

Parking space — part of a residential lease or a separate rental agreement?

1. Parking space included in the apartment lease

• There is one combined lease for both the apartment and parking space.
• The parking space is protected under the same rules as your home, meaning:
  • The landlord cannot increase the parking rent separately.
  • They cannot terminate the parking space rental independently — only the entire lease can be ended.
  • Termination requires valid legal reasons (e.g., personal use under §573 BGB).
• Partial termination is not allowed — you cannot cancel the garage but keep the apartment.
• Rent increases must follow the legal limits for residential rent, and apply to the full unit (apartment + parking).

2. Separate Parking Rental Agreement

• It is treated as an independent contract, governed by general BGB (German Civil Code) tenancy law.
• The terms are more flexible:
  • The notice period can be freely agreed upon (e.g. 1 month).
  • Termination is possible without giving specific reasons, as long as it is within the notice period.
• The landlord may increase the rent by terminating the current agreement and offering a new agreement with higher rental fees.
• The tenant may also terminate the parking rental separately (e.g. when moving out of the apartment.)

Security deposits for parking space rentals

• In many cases there is no deposit required, particularly regarding short-term rentals.
• If a deposit is requested, it usually doesn't exceed 1-2 months' rent.
• Sometimes, a small deposit is required just for handing over the key or providing the remote control for the gate.

If the parking space is part of a residential lease, then the combined deposit (for the apartment + parking) cannot exceed 3 months' rent.
Source: Gansel Rechtsanwälte.

• kept separate from the landlord's own funds (e.g., in a bank account),
• returned to the tenant at the end of the rental period in full, provided there is no damage or unpaid rent.

• the deposit amount,
• the return conditions,
• and any circumstances under which part of the deposit may be withheld.

By the way: Garage Near Me provides a pre-filled tempate for security deposits as part of the booking process!

Your rights and obligations as a landlord

Landlord rights

• Right to receive rent
  You are entitled to receive rent on time. In case of late payment, you may send reminders and, if necessary, terminate the lease in line with the current legal requirements.
• Right to set usage rules
  The contract may limit the use of the space to vehicle parking and storing auto-related items (e.g. tires, bike rack). Storing hazardous materials, turning the garage into a workshop, or using it as a storage unit is typically prohibited for health and safety reasons.
• Right to terminate the lease
  You may terminate the contract pursuant to the agreed or legal notice periods. In case of serious violations (e.g. non-payment or misuse), you may issue a warning to the tenant — if the infraction is not corrected thereafter, you may terminate the lease immediately.
• Right to earn income (and tax duties)
  Rental income must be declared in your tax return. If you're renting out multiple spaces, you may also be subject to VAT (19%) unless you qualify as a small-scale landlord (refer to Kleinunternehmer § 19 UStG).

Landlord obligations

• To provide a usable space
  The space must be usable and safe. Gates must open, the structure must be sound, and access must be unobstructed. You are responsible for major repairs and maintenance unless otherwise agreed.
• Ensuring all safety standards are met
  You have a legal duty to address known hazards or warn tenants about them. Neglecting this duty may result in liability for any damage or injury.
• Return of deposit
  If you collected a deposit, it must be held securely and returned after the lease ends, less any justified deductions (e.g. to cover unpaid rent or damages).

Your rights and obligations as a tenant

Tenant rights

• Exclusive use
  You have the exclusive right to use the rented spot. The landlord cannot use it or rent it to anyone else during the duration of the lease. If access to the space is blocked, you may withhold part of your monthly rent or demand a resolution.
• Intended use
  You may park a vehicle and store permitted items (e.g. tires, a bike). Living in the garage, using it as a storage unit, or running a business from it is not permitted.
• Right to Repairs
  If the garage becomes unusable through no fault of your own (e.g. a broken gate, unsafe pavement), the landlord is required to fix it. If the issue is not resolved, you may be entitled to a rent reduction.
• Privacy
  The landlord may not enter the garage without your permission, except in emergencies or for agreed repairs.
• Subletting (permission required)
  Before renting the space to someone else, you must get written consent from the landlord.

Tenant obligations

• Pay your rent on time
  Late payment may lead to contract termination, especially for non-residential leases where tenant protections are weaker.
• Follow the rules and regulations
  Stick to the agreed use, observe local fire and safety rules, and don't cause disturbances (e.g. loud engine noise).
• Keep the space clean and undamaged
  Treat the garage with care, avoid spills or modifications, and return it in good condition at the end of your tenancy.
• End the lease properly
  Give notice in writing as required, clear out your belongings, and return any keys — ideally, the official handover should take place directly on-site with the landlord present.
• Insurance and liability
  You are responsible for your own vehicle. The landlord is only liable for damages resulting from property defects or negligence. If you cause damage the garage, your personal liability insurance may cover it.