Germany
Last verified August 7, 2026
Written for U.S. passport holders
Deposit Rules
- The security deposit (Kaution) is capped by law at 3 months' cold rent (Kaltmiete, i.e. rent excluding utilities) under §551 of the German Civil Code (BGB).
- You're legally entitled to pay it in 3 equal monthly installments rather than all at once.
- The landlord must hold it in an account separate from their own assets, generally interest-bearing, and typically has a reasonable period after move-out (commonly cited as up to 3–6 months) to return it, deducting only for legitimate damage claims.
Notice & Eviction Protections
- As a tenant, your own notice period to end an indefinite lease is a flat 3 months, no matter how long you've lived there.
- Your landlord's notice period is longer and scales with how long you've rented: at least 3 months, rising to 6 months once you've lived there 5+ years, and 9 months at 8+ years.
- A landlord cannot terminate an indefinite lease without a legally recognized reason ('berechtigtes Interesse') — most commonly personal use (Eigenbedarf) for themselves or close family, a serious contract breach, or significant economic hardship. Simply wanting the unit back with no stated reason is not legally valid grounds.
- All termination notices, from either side, must be in writing with a physical signature — email, text, or a scanned PDF does not legally count.
Rent Increases
- For an existing tenancy, rent increases are capped at 20% over any 3-year period (Kappungsgrenze) — 15% in some designated tight-market states/cities.
- For a brand-new lease in a designated tight-housing area, the Mietpreisbremse ('rent brake') caps the starting rent at no more than 10% above the local reference rent (Mietspiegel).
The Gotcha
Unlike an American month-to-month or easily-non-renewed lease, a German landlord generally cannot end an indefinite tenancy just by choosing not to renew it — they need a legally recognized reason, most commonly Eigenbedarf (needing the unit for themselves or close family). 'I've decided not to renew your lease' isn't valid on its own the way it commonly is in the U.S. If you're used to at-will rental norms, this level of protection is worth understanding before you assume you have less security than you actually do.
Sources
This page was drafted from the primary sources below. Rules change — check the linked page directly before relying on any of this.
- §551 BGB — Limits on and treatment of the security deposit — Bundesministerium der Justiz (gesetze-im-internet.de)
- §573c BGB — Notice periods for ordinary termination — Bundesministerium der Justiz (gesetze-im-internet.de)
- §573 BGB — Landlord's termination for legitimate interest — Bundesministerium der Justiz (gesetze-im-internet.de)