← Back to Life & Law

Life & Law · Module 3 of 6

Tenancy agreements and tenancy law

Your flat is your home – and your tenancy agreement gives you strong rights there. Here you'll find the most important rules from moving in to moving out in plain words, with the matching sections of the law and a quiz to think along.

The six modules

  1. Everyday contracts (BGB)Online
  2. Employment contracts and labour lawOnline
  3. Tenancy agreements and tenancy lawYou are here
  4. Family and custodyOnline
  5. Jobcenter, objections and disabilityOnline
  6. Traffic and insuranceOnline

Module 3: Tenancy agreements and tenancy law

Eight cards on the questions almost every tenant has at some point: deposit, mould, utility costs, rent increases, notice and moving out. Each card gives you the German legal term, so you recognise it in letters from your landlord.

1Tenancy agreement and handover record

When you move in and when you move out, record the condition of the flat in a handover record (Übergabeprotokoll): every scratch, every stain, with photos and the date. Also note the meter readings for electricity, water and heating. Both sides sign, and you get a copy. That way nobody can later blame you for damage that was already there. You don't have to pay for normal wear and tear from living there.

German term: WohnungsübergabeprotokollLaw: §§ 535, 538 BGB

2Deposit: at most three months' basic rent, in three instalments

The deposit may be at most three months' rent without utility costs. You may pay it in three equal monthly instalments; the first is due at the start of the tenancy. The landlord must keep the money separate from her own assets, and the interest belongs to you. Any agreement that deviates from this to your disadvantage is invalid.

German term: Mietsicherheit (Kaution)Law: § 551 BGB

3Defects, mould, heating failure

Report a defect to the landlord immediately, ideally in writing with photos and a deadline for the repair. As long as the flat can only be used to a limited extent, the rent is reduced automatically by law. By how much depends on the individual case. So don't cut the rent on your own – pay it under reservation and get advice. If you don't report a defect, you can be liable for the consequential damage.

German term: Mängelanzeige, MietminderungLaw: §§ 536, 536c BGB

4Utility bill: the 12-month deadline

The landlord must deliver the annual statement of operating costs (Betriebskostenabrechnung) no later than twelve months after the end of the billing period. Example: the statement for calendar year 2024 must reach you by 31 December 2025. If it arrives later, the landlord can generally no longer demand back payment; you still get any credit. You have the right to inspect the receipts and can raise objections within twelve months of receiving it.

German term: Betriebskostenabrechnung, AusschlussfristLaw: § 556 Abs. 3 BGB

5Rent increases and the cap

The landlord can raise the rent up to the local comparative rent, for example according to the rent index (Mietspiegel). For this she needs your consent. You have time to think until the end of the second month after receiving the letter. Within three years, the rent may rise this way by at most 20 per cent, in cities with a tight housing market by at most 15 per cent – Leipzig and Dresden currently have the 15 per cent cap.

German term: Ortsübliche Vergleichsmiete, KappungsgrenzeLaw: §§ 558, 558b BGB

6Ending the tenancy: notice periods and personal use

As a tenant you can give notice at any time with a three-month period, without giving a reason. The notice must be on paper, signed by all main tenants, and reach the landlord by the third working day of a month at the latest. The landlord, on the other hand, needs a legal reason, for example personal use (Eigenbedarf). Her notice period rises to six months after five years of tenancy and to nine months after eight years.

German term: Ordentliche Kündigung, EigenbedarfLaw: §§ 568, 573, 573c BGB

7The landlord's spare key

Once the flat is handed over, it is your protected space. The landlord may not keep a key or enter the flat without your permission. For a visit, for example to read meters or for a repair, she arranges an appointment with you in good time. Only genuine emergencies, such as a burst water pipe, are different.

German term: Hausrecht, Unverletzlichkeit der WohnungLaw: Art. 13 GG · § 535 BGB

8Redecoration when moving out

If you took over the flat unrenovated and received no adequate compensation for it, a pre-printed clause obliging you to paint when you move out is invalid. Rigid intervals such as “paint every three years” also make such clauses invalid. Then you only owe a broom-clean flat (besenrein). Damage beyond normal wear and tear, however, you do have to pay for.

German term: SchönheitsreparaturenLaw: §§ 307, 538 BGB

Quiz: test your knowledge

Twelve questions about renting a home. Tap an answer – then you'll see the explanation with the matching section of the law.

  1. Question 1Before handing over the keys, the landlord wants the entire deposit of three months' basic rent in cash. What applies?

  2. Question 2You come home and find the landlord standing unannounced in your living room – she kept a spare key. Is she allowed to do that?

  3. Question 3In February 2026, the utility bill for calendar year 2024 arrives in your letterbox. The landlord wants a back payment of 450 euros. What applies?

  4. Question 4You have lived in your flat for ten years and want to move out. What notice period do you have?

  5. Question 5In January the heating fails completely and the room is down to 12 °C. What is the most important first step?

  6. Question 6Your standard tenancy agreement says: “Keeping pets is prohibited without exception.” You'd like a hamster or an aquarium. What applies?

  7. Question 7Three years ago you took over the flat unrenovated and without compensation. The contract says you must paint all walls white when you move out. Do you have to?

  8. Question 8Your brother visits and stays with you for four weeks free of charge. The landlord demands a rent surcharge and wants to ban the visit. Is she allowed to?

  9. Question 9After a break-up you want to sublet one room of your three-room flat to afford the rent. Do you need the landlord's permission?

  10. Question 10You want to give notice on your flat effective 31 August. By when must the signed notice reach the landlord?

  11. Question 11You move out and the flat is in good order. When does the landlord have to pay back the deposit?

  12. Question 12From what level of rent arrears may the landlord terminate without notice?

What you can do now

  • When you move in, photograph every room and write the meter readings into the handover record.
  • Pay the deposit by bank transfer and keep the tenancy agreement, handover record and receipts together in a safe place.
  • Report defects in writing straight away, with photos, the date and a deadline for the repair.
  • Check the utility bill and raise any objections in writing within twelve months of receiving it.
  • Sign your notice on paper and send it in good time by registered letter (Einwurf-Einschreiben).

Personal advice

Tenants' association (Mieterverein): for an annual fee, a tenants' association advises you on deposits, utility costs, rent increases and notice, often with legal expenses cover. You'll find the association in your city via the German Tenants' Association (mieterbund.de, in German).

Beratungshilfe (legal advice aid): on a low income, you can get an advice voucher from the local court (Amtsgericht) where you live. With it, a lawyer of your choice advises you for a personal contribution of usually 15 euros.

Rent arrears: the Jobcenter or social welfare office can take over rent arrears so that you keep your home. Talk early to your city's housing emergency advice service (Wohnungsnotfallberatung).

Sources

This guide gives you general orientation on German law. For your specific case, an advice centre or a lawyer is the right place to go.

When the founder gives the company his name

There's a group of companies in German – these are sort of medium-sized companies that are already a bit older, that have been on the market a bit longer – that simply have the name of the owner and founder, 99% or 99.9% of the time a man, as their name. We still have that in part with American companies, with British companies too. Back then that was the usual thing, that you simply took the name – Dell, for example, and there are loads of others. But lately, start-ups create a name that the target group can also identify with, so they use creativity.

Spedition Zufall and Autohaus Gegner

And in German there are just some really funny family names that then get used as company names – like Zufall, for example. Now that's funny! I think Zufall is a freight forwarder. I mean, how can I call my freight company “Zufall” – “Coincidence”? Well, I'd have to be very, very unimaginative, or else have a certain kind of humour. Or there's Autohaus Gegner – it's a local company in Saxony, I think, but then again pretty big, and the dealership is guaranteed to belong to Mr Gegner. And well, of course I find it funny if my company is called “Gegner” – “Opponent”.

I do think you can put these company names under the microscope and explain how they would be rendered in other languages and how that comes across to an English-speaking or Russian-speaking audience. So what do you think?

My favourite: Nothnagel – and why I named my company Autotransfer.jetzt

So my favourite so far among the funny company names is Nothnagel. A truck came towards me recently, and it said “Nothnagel” on it – spelled with a th, of course – and I thought: now that's interesting. A company that's obviously also in logistics in the broadest sense calls itself Nothnagel – “Notnagel” is German for a last resort, literally an emergency nail. And what is it actually about? Recycling. So something gets recycled, and in case it can't be recycled, there's still the last resort – or that's roughly how you have to picture this story.

Yes, that's why I named my company Autotransfer.jetzt back then. Now of course you could argue: what good did that do you? And the people who'd put it that way would of course be right. So a company name that describes something and is easy to remember is of course far from a guarantee of the company's success.

Nevertheless, I do think it's also in the interest of the customers and the target group when founders think up a name that the target group, the community, can then perhaps identify with. Why should the target group identify with the name “Nothnagel”? And of course many people will now argue and say: Nothnagel isn't about the so-called B2C, business-to-consumer market. That may be, but it's still a company in the public eye, and they advertise, and civilians too – private individuals, that is – read the name and then react to it accordingly.

What “Zufall”, “Gegner” and “Nothnagel” mean in other languages

Translated literally, the three names mean:

NameEnglishRussianUkrainian
Zufallcoincidence, chanceслучайность, случайвипадковість, випадок
Gegneropponent, rivalпротивник, соперниксупротивник, суперник
Nothnagel („Notnagel“)last resort, stopgapкрайнее средство, запасной варианткрайній засіб, запасний варіант

In German you hear the joke straight away: you expect a freight company to get your goods there reliably – and it's called “Coincidence”. A car dealer wants to win customers over – and it's called “Opponent”. Translated literally, you'd get “Coincidence Logistics” and “Opponent Motors” in English, «Экспедиция „Случайность“» and «Автосалон „Противник“» in Russian, «Експедиція „Випадковість“» and «Автосалон „Супротивник“» in Ukrainian. And Nothnagel has the “Notnagel” in it, the last resort when nothing else works – literally “Last Resort Recycling”, in Russian «Переработка „Крайнее средство“», in Ukrainian «Переробка „Крайній засіб“».

Company names, though, are usually not translated, just transliterated into other scripts: in Russian and Ukrainian, Zufall becomes “Цуфаль”, Gegner “Гегнер” and Nothnagel “Нотнагель”. For English-, Russian- or Ukrainian-speaking customers that's a completely neutral name – the joke stays in German. It works the other way round, too: hardly anyone in Germany knows that in English a “dell” is a small wooded valley.