How do rental contracts and deposits work in Germany in 2026?

An unbefristeter Mietvertrag is an open-ended tenancy and is common for ordinary homes. A befristeter Mietvertrag is fixed-term and should have a legally valid reason rather than an arbitrary end date.

Kaltmiete is cold rent for the home itself. Nebenkosten are operating costs such as water, waste, building cleaning, and eligible shared services. Warmmiete usually combines cold rent with an operating-cost advance and heating, but electricity and internet often remain separate.

Check whether rent changes through an agreed stepped increase or an index-linked clause. Do not confuse a proposed 2026 reform with enacted law; use the signed contract and current statute.

Section 551 of the German Civil Code caps residential security at three months of cold rent, excluding operating-cost advances.

For a cash deposit, the tenant has a statutory right to three equal monthly instalments. The first is due when the tenancy starts, and the next two accompany the following rent payments.

The landlord must hold the cash separately from personal assets under the legal deposit rules. Keep transfer records and request clear account confirmation.

After move-out, the landlord may review unpaid rent, damage beyond ordinary wear, and unresolved operating costs. There is no single automatic return day for every case, so request a written breakdown of any retained amount.

Create an Übergabeprotokoll, a signed handover condition report, at move-in and move-out. Record meter readings, keys, walls, floors, windows, bathroom fittings, kitchen items, and existing defects with dated photographs.

An annual Nebenkostenabrechnung is the operating-cost statement that compares eligible actual costs with monthly advances. The landlord normally has 12 months after the billing period to deliver it. Tenants should check the allocation method and whether repairs or administration were wrongly included.