German rental contracts contain many terms that differ from other countries’ housing systems. Understanding concepts like cold rent, warm rent, Nebenkosten, deposit rules, and termination clauses is essential for evaluating rental offers and preventing misunderstandings.
This guide explains every important component in a standard German Mietvertrag (rental contract), with particular focus on first-time student tenants.
Cold Rent (Kaltmiete)
Kaltmiete refers to the base rent for the apartment only.
It does not include utilities or heating.
Characteristics
• Represents the cost of occupying the space
• Does not change frequently unless an official rent increase is issued
• Common in most German cities
Typical Range
Varies strongly by city.
For example:
• Leipzig: €250–€400
• Berlin: €450–€700
• Munich: €700+
Warm Rent (Warmmiete)
Warmmiete = Kaltmiete + Nebenkosten (operating costs).
This is the amount tenants pay every month via bank transfer.
Warmmiete usually includes:
• Heating (Heizung)
• Water
• Building maintenance
• Waste disposal
• Shared electricity in hallways
• Property management fees
Important: Internet and electricity inside the apartment are not included in most warm rents and must be set up separately.
Nebenkosten (Operating Costs)
Nebenkosten are monthly pre-payments for utilities and building-related expenses.
They are usually listed as Nebenkostenvorauszahlung in the contract.
Nebenkosten typically cover:
• Heating
• Water & sewage
• Waste collection
• Building cleaning
• Property caretaker (Hausmeister)
• Building insurance
• Shared/common electricity
Nebenkosten do NOT usually cover:
• Internet
• Home electricity
• TV license (Rundfunk)
• Furniture wear & tear
Annual Settlement (Nebenkostenabrechnung)
Once per year, the landlord calculates:
• actual consumption
vs
• monthly pre-payments
Result:
• Refund (common if heating usage is low), or
• Extra payment (Nachzahlung) if consumption exceeded the estimate
This annual settlement is legally required.
Deposit (Kaution)
German law regulates rental deposits strictly.
Deposit Rules
• Maximum 3 months’ cold rent
• Must be stored in a special escrow-style account
• Must be returned after move-out once damage inspection is completed
• Cannot be mixed with the landlord’s personal funds
Refund Timeline
Legally flexible, but typically:
• 3–6 months after move-out
Landlords may keep part of the deposit until Nebenkosten settlement for the final year is completed.
When Deposit Deductions Are Legal
• Unpaid rent
• Unpaid Nebenkosten
• Significant property damage
• Broken fixtures
• Missing keys
Wear-and-tear damage cannot be deducted.
Contract Type: Fixed-Term vs. Open-Ended
Fixed-Term Contract (Befristeter Mietvertrag)
• Ends automatically on a specific date
• Renewal depends on landlord
• Harder to terminate early
Open-Ended Contract (Unbefristeter Mietvertrag)
• Most common in Germany
• No predefined end date
• Standard termination periods apply
Termination Notice Periods (KĂĽndigungsfrist)
For tenants, the standard notice period is three months.
Key Rules
• Notice must be submitted in writing (signed, physical paper)
• Emails or WhatsApp messages are not legally valid
• Notice must arrive by the 3rd working day of the month
Example:
If notice arrives on March 2 → contract ends June 30.
If notice arrives on March 5 → contract ends July 31.
Renovation & Maintenance Clauses
Some contracts include Schönheitsreparaturen clauses requiring tenants to perform cosmetic repairs.
Typical Requirements
• Repainting walls
• Filling nail holes
• Light cleaning
These clauses must comply with German court rulings; overly strict clauses are invalid.
Subletting (Untermiete)
Subletting generally requires written permission from the landlord.
Unauthorized subletting may lead to eviction.
When Subletting Is Allowed
• Temporary internship in another city
• Exchange semester
• Documented financial hardship
Landlords cannot refuse permission without valid reason.
Important Documents Included in the Contract
A proper Mietvertrag typically includes:
• House rules (Hausordnung)
• Floor plan
• Deposit agreement
• Heating cost distribution method
• Protocol for handover (Übergabeprotokoll)
Keep copies of everything for future reference.
Red Flags in Rental Contracts
Be cautious if the contract includes:
• Unusually high Nebenkosten with no explanation
• Deposit higher than legally allowed
• Mandatory agent fees (these are illegal)
• Contracts refused prior to viewing
• Pressure to sign immediately
Summary
German rental agreements contain many unfamiliar terms, but the structure is highly regulated and predictable.
Understanding the differences between cold rent, warm rent, Nebenkosten, deposit rules, and termination clauses helps tenants evaluate listings accurately, avoid misunderstandings, and maintain legal protection.