German Lease Agreement in English — How to Read Your Mietvertrag

What is a Mietvertrag?

A Mietvertrag is a German tenancy agreement — the contract between you (the Mieter, tenant) and your landlord (Vermieter). Germany has some of the strongest tenant protections in Europe, governed primarily by the Bürgerliches Gesetzbuch (BGB), specifically §§535–580a.

Most German leases are open-ended (unbefristet), meaning they run indefinitely until one party terminates. Fixed-term contracts (befristete Mietverträge) are permitted but must meet strict legal criteria to be valid.

German landlords frequently use standard-form contracts — often the DMB-Mietvertrag or a Haus & Grund template. These are generally balanced, but individual clauses can vary, and some are unenforceable even if they appear in print.

The security deposit (Kaution)

Your landlord can ask for a deposit before or at the start of your tenancy. Under §551 BGB, this is legally capped at three months' cold rent (Kaltmiete) — not Warmmiete. If your lease asks for more, the excess is unenforceable and you can refuse to pay it.

You're entitled to pay the deposit in three equal monthly instalments rather than all at once (§551(2) BGB). Many landlords don't mention this — but it's your legal right.

The deposit must be held in a separate interest-bearing account (Mietkautionskonto) and cannot be mixed with the landlord's personal funds. After you move out, your landlord has a reasonable period (typically up to six months, but this is not a hard deadline in law) to review the flat and deduct any legitimate costs. The remaining deposit plus interest must be returned to you.

Schönheitsreparaturen — the cosmetic repairs clause

This is one of the most contested areas of German tenancy law, and the one most likely to catch expats off guard. Schönheitsreparaturen literally means "cosmetic repairs" — painting walls, varnishing floors, repainting windows and doors.

Under standard German law, these are the landlord's responsibility. However, many leases include a clause shifting this responsibility to the tenant. Whether that clause is legally enforceable depends entirely on its wording.

The Bundesgerichtshof (BGH) — Germany's highest civil court — has invalidated many standard Schönheitsreparaturen clauses in a series of landmark rulings. A clause is unenforceable if it:

• Sets rigid time intervals for repainting regardless of actual condition (e.g. "every 3 years for kitchen, every 5 years for living rooms")
• Requires you to return the flat to a neutral colour scheme if the landlord previously gave permission for colours
• Obliges you to carry out repairs on a flat that was not freshly decorated when you moved in
• Requires professional tradespeople rather than allowing you to do work yourself

Notice periods (Kündigungsfrist)

For tenants, the notice period is always three months, regardless of how long you've lived there. Notice must be given in writing (Kündigung) and must arrive at the landlord's address by the third working day of a calendar month to count for that month.

For landlords, it's more complicated. The notice period for landlords increases with the length of your tenancy:

• Up to 5 years: 3 months' notice
• 5–8 years: 6 months' notice
• More than 8 years: 9 months' notice

Landlords can only terminate without fault in very limited circumstances — they must have a legally recognised reason (berechtigtes Interesse), the most common being Eigenbedarf (the landlord needs the flat for themselves or a close family member).

Rent increases (Mieterhöhung)

Your landlord cannot simply increase your rent at will. Increases are regulated by two mechanisms:

Mietpreisbremse (rent brake): In designated areas — which includes most major German cities — new tenancies cannot be priced more than 10% above the local reference rent (Mietspiegel). Increases during an existing tenancy are separately regulated.

Kappungsgrenze (cap): During an existing tenancy, rent can only be increased to the current Mietspiegel level, and only by a maximum of 20% over any three-year period (15% in some high-demand areas). Increases must be preceded by written notice and at least 15 months must pass between increases.

If your lease contains an Indexmiete clause, rent increases are instead tied to the official consumer price index (Verbraucherpreisindex). If it contains a Staffelmiete clause, increases are scheduled and pre-agreed — these are alternative mechanisms and have their own rules.

Subletting (Untervermietung)

You need your landlord's permission to sublet your flat in whole or in part. However, if you have a legitimate personal interest in subletting — for example, you're working abroad temporarily or your personal circumstances have changed — your landlord cannot refuse without a valid reason (§553 BGB). If they refuse unreasonably, you may have the right to terminate the lease early.

Note that Airbnb and short-term commercial subletting is a different matter — this typically requires explicit permission and may be prohibited by house rules or local regulations in your city.

House rules (Hausordnung)

Most German leases reference a Hausordnung — a set of house rules. These typically cover quiet hours (Ruhezeiten: usually 10pm–6am and 1pm–3pm on weekdays), bin procedures, laundry room schedules, and rules about common areas.

Check whether the Hausordnung is attached to your lease or referenced as a separate document. Rules that are excessively restrictive or not referenced in your lease may not be binding.

Pets (Tierhaltung)

German law distinguishes between pets that require permission and those that don't. Small animals — hamsters, fish, birds in reasonable numbers — are generally allowed without permission. Dogs and cats are a different matter.

A blanket prohibition on pets in a lease is generally not enforceable (BGH rulings). However, a landlord can refuse permission for a specific animal if there is a valid reason (e.g. allergies of other tenants, size of the flat, house rules). A clause saying "no pets whatsoever, under any circumstances" has been repeatedly overturned by German courts.

Once you've moved in, you'll receive an annual Nebenkostenabrechnung — a breakdown of the shared building costs charged against your monthly advance payments. Our guide to reading a Nebenkostenabrechnung in English explains what every line means and how to spot errors in your favour.

What to check before you sign

1. Kaution amount — is it within the legal maximum of three months' Kaltmiete?
2. Schönheitsreparaturen clause — does it set rigid intervals or unreasonable conditions? If so, it may not be enforceable — but get it checked.
3. Betriebskosten list — which ancillary costs are included in your monthly advance? Make sure they're clearly listed.
4. Fixed-term clause — if the lease is stated as fixed-term, does the reason comply with §575 BGB? Invalid befristung contracts automatically become open-ended.
5. Rent increase mechanism — Indexmiete, Staffelmiete, or standard Mietpreisbremse rules? Know which applies.
6. Übergabeprotokoll — insist on a written handover protocol (flat inspection record) when you move in, with photos. This protects you when you move out.