Rental contracts in Germany: deposit, notice and costs explained

2 min read · 7 steps · Updated 2 October 2026

German rental contracts are long and full of terms that do not translate easily. A handful of rules are fixed by law and protect the tenant, whatever the contract says. Knowing them saves money when you move in and when you move out.

Rules, amounts and deadlines change. Check the official source named at the end before you act, and ask the office in your city, because procedures differ from town to town.

Step by step

1. Tell cold rent from warm rent

   The cold rent (Kaltmiete) is for the flat alone. The warm rent (Warmmiete) adds the running costs, the Nebenkosten: water, heating, refuse collection, building insurance, caretaker and so on. The warm rent is what leaves your account each month.

   Done

2. Budget for what is not included

   Electricity, gas where it is separate, internet and phone are normally your own contracts, on top of the warm rent. So is the broadcasting fee.

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3. Expect a yearly statement

   The running costs are paid as monthly advances. Once a year the landlord sends a statement (Nebenkostenabrechnung). If you used more than you paid, you pay the difference. If less, you get money back.

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4. Check the deposit

   The deposit (Kaution) may not be more than three months' cold rent. You may pay it in three monthly instalments, the first when the tenancy begins. The landlord must keep it separate from his own money.

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5. Know your notice period

   A tenant can end an open-ended contract with three months' notice. The notice has to be on paper, signed, and with the landlord by the third working day of a month for that month to count. Email is not enough.

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6. Look for the type of rent

   With an index rent (Indexmiete) the rent follows inflation and can rise once a year. With a graduated rent (Staffelmiete) the increases are written into the contract as fixed amounts. With a fixed-term contract you usually cannot leave before the end date.

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7. Record the condition of the flat

   Before you take the keys, go through the flat with the landlord and write down every scratch and stain in a handover record (Übergabeprotokoll), signed by both. Take photos. This is your protection when the deposit is returned.

   Done

Good to know

A landlord needs a legal reason to end the contract, for example needing the flat for his own use or two months of unpaid rent. Simply wanting a new tenant is not a reason.

After you move out, the landlord may keep part of the deposit only for justified claims such as damage or unpaid rent.

Subletting a room needs the landlord's consent.

A tenants' association (Mieterverein) checks contracts and statements and gives legal advice for a yearly fee of roughly 50 euros and up. It is worth it in any dispute. How the search works: how to find a flat in Germany.

In short: Warm rent is what you pay. Deposit at most three months' cold rent, in three instalments. Three months' written notice. Handover record with photos.