Understanding your rental contract and deposit (2026)
Base rent, utilities, deposit and handover protocol — what is in the lease and what to check before signing.
Base rent, warm rent and utilities
Kaltmiete (cold rent) is the net rent without heating, water and operating costs. Warmmiete often includes an advance payment for utilities (Nebenkosten). At year-end comes the utility statement — overpayment is refunded, underpayment is charged.
Check what is included in warm rent: heating, water, waste, caretaker, garden? Unexpected back payments often happen because the advance was set too low — not because you “used too much”.
Rent may only rise to a limited extent in the first 12 months after moving in. Increases after that need justification (e.g. local comparative rent, modernisation) — not every letter is valid.
Deposit — amount, account and return
The deposit (Kaution) secures the landlord — maximum three months’ net cold rent. The landlord must place it in a separate deposit account; you are entitled to the interest.
Payment in three instalments on move-in is common. Some landlords accept a deposit guarantee (bank bond) instead of cash — that ties up less capital.
Return happens after move-out and settlement, often after several months. Damage and open utility bills can be withheld — which is why the handover protocol matters.
Handover protocol and cosmetic repairs
On move-in and move-out use a handover protocol with photos: meter readings, scratches, damp, number of keys. Do not sign what you do not understand — document defects immediately.
Schönheitsreparaturen (painting, wallpapering) are a frequent dispute. What the contract demands must be clear and reasonable; blanket clauses (“all rooms every 3 years”) are often invalid. Insist on documenting the actual condition.
Minor repairs (tap, light switch) are sometimes capped per repair and per year — check the clause.
Notice and your rights
The statutory notice period for tenants is three months to the end of a month — the contract cannot extend that for the tenant. The landlord needs grounds (own use, rent arrears, etc.).
Subletting is possible with the landlord’s consent; in shared flats clarify who is the main tenant and how the deposit is handled.
If problems arise: tenants’ association or advice centre — do not cancel or withhold rent without legal advice.
Practical tips
- Handover protocol with photos — on move-in and move-out.
- Deposit max three months cold rent — on a separate account.
- Question whether the utility advance is realistic.
- Have the lease checked for cosmetic-repair clauses.
Common mistakes to avoid
- Signing the lease unread — because of language barriers.
- No handover protocol — later disputes over damage.
- Paying deposit cash without receipt or to a private account.
- Ignoring cosmetic-repair clauses — expensive surprise on move-out.
- Accepting a rent increase without checking the justification.
Checklist before you compare
- Cold rent, warm rent and utility share understood.
- Deposit (max. 3 cold rents) and payment method clarified.
- Handover protocol with photos and meter readings created.
- Cosmetic and minor-repair clauses read.
- Liability insurance for tenant damage in place.
Frequently asked questions
Do I have to pay the full deposit at once?
No. You may pay it in three equal monthly instalments starting from move-in.
When do I get the deposit back?
After move-out once utilities are settled and no legitimate claims remain — often after three to six months.
Can the landlord raise the rent at will?
No. Increases must be justified and formally correct. Special limits apply in the first 12 months after move-in.
Next steps: compare & save
Basics sorted? Put them to use — compare in the categories that matter most.
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