Renting a worker room: contract, deposit and notice periods explained

Rental contract or accommodation contract — which applies to a worker room?

Both occur, and the classification determines the guest's rights. A rental contract for residential space is subject to the tenancy law of the BGB (Bürgerliches Gesetzbuch — the German Civil Code), whereas an accommodation contract — as in a hotel — is not. With worker accommodation, the classification depends on the individual case: duration, purpose of the stay and the additional services offered are the decisive criteria.

An accommodation contract typically exists where the property is run in a hotel-like manner: short stays, services such as regular cleaning, changes of bed linen or breakfast, commercial operation with changing guests. It is a mixed contract with elements of rental, service and works contract law — the protective provisions of residential tenancy law do not apply here.

A rental contract is the closer fit where a room or apartment is provided for a longer period without hotel-type services — a worker apartment used exclusively by a team for three months and run by them, for instance. Even then, however, this is usually residential space for temporary use only, for which the law provides important exceptions.

Temporary use: the key distinction in tenancy law

Where residential space is let for temporary use only, key tenant protection provisions do not apply under § 549 (2) no. 1 BGB — including protection against termination (§§ 573, 573a, 574 to 575, 577, 577a BGB among others) and the rules on rent levels (§§ 556d to 561 BGB). That is precisely the typical situation on an assignment.

Whether there is temporary use is assessed by the courts on the basis of time and purpose: the stay must be limited in time from the outset, and its purpose must be to meet a temporary accommodation need — the duration of a construction project, for example. A fitter who takes a room for the term of a contract and then returns to his main residence generally meets both criteria.

In practice that means: the landlord of a worker room can terminate without having to show a legitimate interest such as personal use, and the rent cap does not apply either. Conversely, for the guest: the strong protection of residential tenancy law enjoyed by tenants on open-ended contracts does not exist here. That makes a clean contract, expressly settling the key points, all the more important.

What belongs in the contract

A good contract for worker accommodation names the people, the period, the price and the services included so specifically that no dispute over interpretation arises later. Precisely because fewer statutory protections apply to temporary use, the written word counts here.

The most important points at a glance:

• Contracting parties and occupants: who is entering into the contract — the company or the fitter himself? Which people may occupy the accommodation? For team bookings, all occupants should be named, or the group of people clearly defined, including a rule for staff changes during the assignment.
• Period: a specific start and end date, or a link to the project duration, plus rules on extension and early termination — construction schedules often shift.
• Price and utilities: is the price a flat rate including electricity, heating, water, Wi-Fi and bed linen — or are there additional items? With worker accommodation, an all-inclusive rate is the norm; if the contract says nothing about it, disputes are pre-programmed.
• Final cleaning: is it included in the price, charged separately, or must the place be handed back swept clean? The amount of any separate final cleaning charge belongs in the contract as a figure.
• Cancellation terms: by when can you cancel free of charge, and what does a later cancellation cost? For companies with shiftable project starts, one of the most important points.
• House rules and rules of use: smoking, pets, visitors, quiet hours, use of the kitchen and washing machine.

Payment, advance payment and liability for damage

The payment arrangements also belong expressly in the contract: when is the rent or nightly rate due, is a deposit required, and how is payment made? With worker accommodation, monthly payment in advance or a deposit on booking are common — both are negotiable and should be fixed in writing.

Important for companies: agree payment by invoice with a reasonable payment period rather than cash on site. That makes bookkeeping easier, creates a clean record of payment and is a prerequisite for proper tax treatment. A receipt for cash payments is the minimum if cash it has to be.

On liability, the contract should settle who is answerable for damage to the accommodation and its contents. With company bookings, the company as contracting party is in principle liable under the contractual rules — regardless of which employee caused the damage. Some contracts provide for a limitation to gross negligence and intent, others refer to public liability insurance. Clarify before signing whether your own business liability insurance covers damage to rented accommodation — that is not the case in every policy.

Company bookings: when the company rents for its employees

If the company rents the accommodation for its fitters, it is itself the contracting party — with its own rights and obligations. The company owes the rent, is liable for damage under the contractual rules and is the landlord's point of contact. The fitters are then users, not tenants.

This arrangement has advantages: the company receives an invoice in the company name (important for the business expense deduction and input VAT — more on this in the article on deducting accommodation costs for tax), can swap staff flexibly where the contract allows it, and can negotiate framework terms where the need recurs. Since this is not a residential tenancy of the user but a letting for business purposes, the social protection provisions of residential tenancy law do not generally apply in this arrangement anyway — term, termination rules and conditions are largely freely negotiable.

In the contract, the company should above all settle: the right to change occupants (so that a fitter can be swapped without touching the contract), clear cancellation terms for postponed projects, and an extension option on fixed terms. If you regularly need accommodation for teams, our page for companies sets out the right route to booking.

Deposit: what is customary and where limits apply

A deposit is common with worker accommodation but not universal — many landlords waive it for short stays or ask for a smaller fixed sum as security for keys and contents. A statutory deposit limit applies only where there is genuinely a residential tenancy agreement.

For residential tenancies, § 551 BGB caps the deposit at no more than three times the monthly net cold rent. The tenant may pay a cash deposit in three equal monthly instalments, and the landlord must hold it separately from his own assets at a credit institution. This upper limit is mandatory — any agreement to the tenant's detriment is invalid. Notably, § 549 (2) BGB does not exclude § 551 BGB from application. So where there is a residential tenancy agreement — even one for temporary use — there is much to suggest that the deposit limit applies.

It is different with an accommodation contract: residential tenancy law does not apply here, and therefore neither does the limit in § 551 BGB. In practice, hotel-like properties usually ask only for moderate security or a deposit on booking anyway. Regardless of the legal classification: the amount, purpose and repayment terms of the deposit belong expressly in the contract — including the deadline by which the landlord will settle up after departure.

Notice periods: fixed-term contracts end automatically

Most contracts for worker accommodation are fixed-term — and a fixed-term tenancy ends automatically on expiry of the agreed period under § 542 (2) BGB. No notice is needed for that. If you have booked until the end of the project, you move out on the end date and the contract is over.

It gets more complicated with early termination: a fixed-term contract can in principle only be terminated before expiry for good cause, by extraordinary termination — or ended by mutual agreement. Good cause exists, for instance, where the accommodation has significant defects making the stay unreasonable. That the site finishes early or the contract falls through, by contrast, is not a statutory ground for termination — the person booking bears the risk of their own planning. Without a contractual provision, there is no automatic right in these cases to end the contract early. That is why an exit or cancellation clause belongs in every contract for a longer assignment.

For open-ended residential tenancies, the ordinary notice period in § 573c (1) BGB applies: notice by the third working day of a month, effective at the end of the month after next — around three months in effect. For residential space let for temporary use only, however, § 573c (2) BGB expressly permits a shorter period to be agreed. Contracts for worker accommodation regularly make use of exactly that — with a two-week period, for example. What has been agreed is in the contract; so it is worth reading the termination clause before signing. With an accommodation contract, the termination rules of residential tenancy law do not apply in any event; there, the agreed cancellation terms are what counts.

Handover record: small effort, big effect

A handover record documents the condition of the accommodation at move-in and move-out — and protects both sides against disputes over damage, missing contents and the settlement of the deposit. With furnished worker accommodation containing a lot of inventory, it is particularly valuable.

The record should contain: the date and those present, meter readings (where billing is by consumption), the condition of rooms, furniture and appliances, existing damage with a brief description — ideally supplemented by timestamped photos — the keys handed over, and signatures from both sides. On departure, the same record is countersigned.

For companies, it is advisable to authorise the fitter or foreman present to sign where nobody from the administration is on site. A clean move-in record is the best argument when the landlord raises damage on departure that was already there — and, conversely, the best basis for the landlord to evidence genuine damage.

Checklist before signing

Before booking worker accommodation you should check six points: the type of contract, the people named, the period with extension and exit rules, the price including all utilities and the final cleaning, the deposit arrangement, and the termination or cancellation terms.

Anyone who has these points fixed in writing is prepared both for the normal case and for the problem case — postponed projects, staff changes, early departure. Incidentally, registration law also sets clear rules for assignments — when registration is needed and when it is not is explained in our article on the registration duty for worker accommodation. And if you are still looking for suitable accommodation for your team, our enquiry form will get you suitable offers for your place of work.

Note: this article provides general information and does not replace legal advice. Whether a rental contract or an accommodation contract exists in an individual case, and which provisions apply, depends on the specific circumstances.