German rental agreements are, in principle, favorable to tenants. Still, there are many points to consider before signing anything, because the rights and obligations set out in a rental contract are legally binding. This article covers the types of rental contract in Germany, fixed-term (befristet) and open-ended (unbefristet) leases, a rental-contract checklist, what German rent includes, “cold rent” versus “warm rent,” rent increases and staggered rent, the deposit and deposit insurance, registering your address in Germany, terminating a German lease, and Germany’s tenant associations (Mietvereine).
Types of Rental Contract in Germany
Although the length of rental contracts varies, German rental agreements (Mietverträge) follow the same standard form across different types of housing. This means they generally include (though not always) terms that apply to a tenant’s specific circumstances. You should read your contract carefully before signing, to make sure you understand all of its terms.
Although a verbal agreement is, in principle, legally binding, it is very difficult to prove. It is therefore wise to sign a rental agreement in writing.
Germany has two types of rental agreement: fixed-term (befristet) and open-ended (unbefristet).
Fixed-Term (Befristet) Lease
A fixed-term contract sets a move-in and move-out date. It does not necessarily renew when it expires. You will typically encounter this in student housing, where a room is let only for the duration of an academic year or semester.
Open-Ended (Unbefristet) Lease
An open-ended contract has no end date. The tenant can terminate an open-ended contract by giving notice, while the landlord is subject to considerably tighter restrictions and cannot terminate an open-ended contract without sufficient cause.
Rental Contract Checklist
Before signing a rental contract, check that it includes the following:
- The landlord’s name and full address
- The property’s address and description
- Start and end dates (if applicable)
- Monthly rent and payment method
- The deposit
- Additional costs and/or utilities (e.g. energy (gas and electricity), water, internet, telephone)
- Specific house rules, for example relating to smoking, pets, subletting a room, structural changes, and renovation
- The landlord’s responsibilities for maintenance and repairs
- The notice period for terminating the contract
- An inventory list (if the apartment is furnished)
- Notice of any rent increases, such as a “staggered rent” (Staffelmiete)
What Does German Rent Include?
The rental contract will state exactly how much rent you are expected to pay. It will usually specify the payment date and preferred payment method. The most common way to pay rent is a transfer into the landlord’s bank account.
“Cold Rent” vs. “Warm Rent” in a German Lease
German leases are split into “cold rent” (Kaltmiete — rent only) or “warm rent” (Warmmiete — including building service charges, and sometimes utility costs (Nebenkosten) too, such as gas, electricity, service charges, internet, and phone). Make sure you know what is and is not included before signing, to avoid any unexpected costs later.
Rent Increases and Staggered Rent (Staffelmiete)
A German rental agreement will also set out any terms for future rent increases. By law, a landlord cannot raise your rent within the first 12 months of your tenancy, or by more than 20% over a three-year period (15% in some federal states).
Because of this, some landlords charge a “staggered rent” (Staffelmiete), which increases gradually over time. Any such rent-increase schedule will be written into the rental agreement. It is worth noting that if a landlord charges a staggered rent, no additional rent increase is permitted on top of it.
Deposit (Kaution)
Tenants usually have to pay a deposit before moving in, to protect the landlord against any damage or unpaid rent. The exact amount will be specified in your rental agreement, but by law it cannot exceed three months’ rent.
The landlord is obliged to keep the tenant’s deposit separate from their other assets, for example by placing it in a special savings account. At the end of the lease, the landlord must repay the deposit along with any interest accrued over that period.
Rental Deposit Insurance
If you are a student and cash is a little tight, you can opt for a rental deposit insurance plan — a guarantee arrangement between the tenant and an insurance company or bank. Instead of paying a deposit, you pay the insurance provider an annual fee, at around 4.7% of the deposit amount, and the insurer guarantees the deposit instead. Kautionskasse offers this service in Germany.
Registering Your Address in Germany
Once you have found a room, apartment, or house, the first thing you need to do in Germany is register your address at the local citizens’ registration office (Bürgeramt). Until 2015, you could do this simply by signing your rental contract. Since the law changed, however, you must provide a separate document called a certificate of accommodation (Wohnungsgeberbestätigung) to register.
Don’t forget that if you change address in Germany, you will need to re-register.
Terminating a Lease in Germany
- Germany protects tenants’ rights, and it is difficult for a landlord to terminate a lease. A contract can only be terminated for certain reasons, such as:
- The landlord clearly needs the property for their own use (i.e. they want to sell the property or move in themselves)
- The tenant has repeatedly failed to pay rent on time
- The tenant has breached the terms of use in the rental agreement, for example subletting a room or keeping a pet without permission
- The tenant has engaged in antisocial behavior
Notice to Terminate a Lease
Even where the grounds for terminating a lease are legitimate, a minimum notice period still applies. Different periods apply to landlords and tenants.
Tenant’s Notice to Terminate a Lease in Germany
A tenant can give three months’ written notice to terminate the lease. Unless the rental agreement specifies a shorter or longer notice period, the same notice period applies whether the tenant has lived in the property for three months or thirty years.
Landlord’s Notice to Terminate a Lease
The amount of notice a landlord must give depends on how long the tenant has lived in the property:
| Length of Time in the Property | Minimum Notice Period |
|---|---|
| 0-5 years | 3 months |
| 5-8 years | 6 months |
| Over 8 years | 9 months |
The minimum notice period above applies only where the landlord wants to convert the property to personal use. If the rental contract has been breached through non-payment of rent or unauthorized subletting, the landlord has the right to terminate the contract without notice. The tenant, however, has the right to contest the termination, and the matter may end up being taken to court.
Germany’s Tenant Associations (Mietvereine)
Most German towns have a local tenant association (Mietverein or Mietschutzbund), which can help tenants with all housing-related matters, including legal advice and negotiating with landlords.
Have a question about this guide? Leave a comment below, or ask Zagdim directly.
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