Understanding a Rental Agreement — Kaltmiete, Warmmiete, Termination and Pitfalls

Basic Concepts in Rental Agreements

Kaltmiete vs Warmmiete

• Kaltmiete (net rent) — the pure rent for the apartment without additional costs
• Warmmiete (gross rent) — Kaltmiete + advance payment for additional costs (heating, water, waste, etc.)
• Example: Kaltmiete €700 + additional costs €200 = Warmmiete €900

Attention: Ads often show only the Kaltmiete — your actual monthly payment is the Warmmiete! Additionally, electricity and internet may be added (not included in additional costs).

Security Deposit

• Maximum 3 months of Kaltmiete — the landlord cannot demand more
• Can be paid in 3 equal monthly installments (first installment upon move-in)
• Must be deposited in a separate account (rental deposit account)
• Refund after move-out: within 3–6 months (after reviewing the statement)

Rent Models

Staffelmiete

Rent increases in predetermined steps at specific times:

• Example: €700 in year 1 → €730 in year 2 → €760 in year 3
• Advantage: Predictable costs, no surprise increases
• Disadvantage: No opportunity to object to rent increases
• Between steps: minimum 12 months apart

Indexmiete

Rent is linked to the consumer price index (inflation):

• If inflation rises, rent rises
• Adjustment only once per year and in writing
• Advantage: Transparent and comprehensible
• Disadvantage: With high inflation, increases can be significant

Standard Rental Agreement

Without special provisions:
- Rent increase only up to the customary local comparative rent (Mietspiegel)
- Maximum 20% in 3 years (in tight housing markets: 15%, "Kappungsgrenze")

Mietpreisbremse

In areas with tight housing markets (most major cities):

• New rent may be maximum 10% above the customary local comparative rent
• Exceptions: New construction (first occupancy after 01.10.2014), comprehensive modernization
• Written notice required — you must inform the landlord in writing of the excess
• Overpaid rent can be reclaimed from the date of notice

Notice Periods

For Tenants

• 3 months — always, regardless of rental duration
• Notice must be in writing (letter, not email or WhatsApp)
• Notice must be received by the 3rd business day of a month (then that month counts)
• Example: Notice on April 2 → rental agreement ends June 30

For Landlords

Notice period increases with rental duration:

The landlord must have a justified reason (personal use, serious breach of contract, economic utilization).

Schönheitsreparaturen

• Painting, wallpapering, varnishing at move-out
• Many clauses in rental agreements are invalid (e.g., fixed schedules like "paint every 3 years")
• Federal Court of Justice ruling: If the apartment was unrenovated at move-in, you don't have to renovate it
• When in doubt: consult a tenants' rights organization (membership from about €50–90/year)

Common Pitfalls

• Minor repair clause — you pay for minor repairs (max. €75–120 per case, max. €200/year total)
• Pet clause — small animals (hamsters, fish) always allowed, dogs/cats can be prohibited
• Subletting — only with landlord's permission; if they have a justified interest, they must consent

As of: March 2026. All information without guarantee.