Kaution and Nebenkosten in Germany: the three-month legal cap, payment in instalments, the 12-month service-charge deadline and how to get your money back.
Two German words decide how much your room really costs and how much money comes back at the end. The Kaution is the deposit: § 551 of the German Civil Code caps it at three months' cold rent, excluding service charges, and expressly allows you to pay it in three equal monthly instalments, the first at the start of the tenancy. The Nebenkosten are the service charges you pay monthly in advance and which are settled once a year: under § 556 BGB, the landlord must send you that annual statement within 12 months of the end of the accounting period, or lose the right to claim any shortfall — unless the delay is not attributable to them (§ 556(3) BGB). Here is how to use both rules instead of discovering them too late.
Cold rent, warm rent: the number you must compare
Every German ad quotes at least two figures, and comparing the wrong one is how students end up €80 a month over budget.
- Kaltmiete — the cold rent, the bare rent for the space.
- Nebenkosten (also Betriebskosten) — the monthly advance on shared running costs.
- Warmmiete — the two combined, usually including heating. This is the comparable figure.
The distinction is not cosmetic. Your deposit cap is calculated on the cold rent, and your annual settlement only ever concerns the service-charge part. When you compare a hall room with a private room, as in our housing comparison for Göttingen, make sure you are holding warm against warm.
The Kaution: three months, three instalments
German law is unusually clear here, and unusually favourable to tenants.
The ceiling. § 551 BGB limits the deposit to a maximum of three months' rent excluding service charges. The cap is mandatory: § 551(4) BGB provides that any agreement departing from these rules to the tenant's detriment is ineffective, whatever the contract says. Exactly how much of such a clause survives is a matter for German case law — if you are facing one, take the contract to a tenants' association rather than arguing it yourself. So a landlord asking for "three months warm" is already asking for more than the law allows.
Payment in instalments. You are entitled to pay the deposit in three equal monthly instalments, the first due at the beginning of the tenancy. A clause demanding the whole sum up front is ineffective. Very few students know this, and it is the difference between finding €1,200 before you fly and finding €400.
How it must be held. The landlord has to keep the deposit separate from their own assets, invested at the interest rate usual for savings accounts, and the interest accrues to you (§ 551(3) BGB). This is also why a deposit handed over in cash with no receipt is such a bad idea: nothing traces it.
One exception that concerns a lot of students: the same paragraph states that for accommodation in a student or youth hall of residence (Studenten- oder Jugendwohnheim), the landlord has no obligation to pay interest on the deposit. So expect interest on a private tenancy — not on a hall room.
Three practical rules follow:
- Always transfer the deposit by bank transfer, with a clear reference, to a named account.
- Never pay a deposit before you have seen the room and signed a written contract — the classic fraud pattern our anti-scam checklist describes.
- In a sublet, you are paying the main tenant, not the owner. Check that they are entitled to sublet, and get the amount and the parties in writing — the same person who signs your housing confirmation should be the one named on the deposit.
Nebenkosten: what can and cannot be charged
Not everything a building costs can be passed on to you. The Betriebskostenverordnung lists in its § 2 the categories that may be recharged — things like water, drainage, waste collection, heating, building insurance, lighting of common areas, caretaker, and so on. Anything outside that list is the landlord's problem.
Two categories that § 1(2) BetrKV expressly excludes from operating costs, and that regularly appear where they should not:
- administration costs — the landlord's own management overhead;
- repairs and maintenance — fixing the boiler is not a running cost.
Each year you receive a Nebenkostenabrechnung, comparing what you paid in advance with what was actually spent. Either you get money back, or you owe a top-up. The deadlines that protect you:
| Who | Deadline |
|---|---|
| Landlord must deliver the annual statement | 12 months after the end of the accounting period |
| Consequence if they are late | They lose the right to claim a top-up, unless the delay is not their fault (§ 556(3) BGB) |
| You may object to the statement | 12 months from receiving it — after that, objections are barred, unless the delay is not your fault |
You also have the right to inspect the underlying invoices. If a figure jumps without explanation, ask to see the supporting documents before paying anything.
Getting your money back at the end
This is where exchange students lose money, because they leave the country before the story ends.
There is no fixed statutory deadline for returning the deposit. The landlord is allowed a reasonable period to check the flat and settle accounts — in practice commonly three to six months. They may also retain a proportionate part of the deposit until the annual service-charge statement is issued, and release the rest.
And a deadline that works in your favour: under § 548(1) BGB, the landlord's claims for changes or deterioration of the property are time-barred six months after they get the property back.
What actually protects you:
- A handover protocol at move-in (Übergabeprotokoll), listing existing marks and defects, signed by both sides, with dated photos of every room. Without it you are presumed to have received the place in perfect condition.
- The same protocol at move-out, again with photos, and the meter readings.
- A written forwarding address and your IBAN, given to the landlord before you leave. A non-German SEPA account works — but if they have no address and no account number, nothing is coming back.
- Every document kept: contract, transfers, both protocols, all correspondence.
Two more points to have on your radar. First, cosmetic-repair clauses — obligations to repaint on leaving. Start from the default rule: § 538 BGB provides that the tenant is not answerable for changes or deterioration caused by using the property in accordance with the contract. Clauses that shift redecoration onto the tenant are standard terms, and German courts review them closely — but whether the specific clause in your contract holds up is a question we are not going to answer for you. If you are asked to redecorate at the end, or if the cost is taken out of your deposit, get advice from a tenants' association before agreeing or paying. Second, deductions must be justified and evidenced: normal wear from ordinary living is not damage, and a landlord withholding money should be able to show quotes or invoices.
An exit checklist for the end of the semester
In your last two weeks in Göttingen, in this order:
- Agree the move-out inspection date in writing, and be there for it.
- Take photos and meter readings, and get the protocol signed.
- Hand over all keys, against a receipt.
- Give the forwarding address and IBAN in writing.
- Do your address deregistration at the Bürgerbüro, and close or transfer the broadcasting-fee account for the home.
- Diarise a reminder for three and six months later to chase the deposit if nothing has arrived.
And if you are still at the other end of the journey — signing rather than leaving — read the deposit clause of your contract before anything else. Our guide to finding a WG in Göttingen shows where the abusive clauses usually hide.
FAQ — Kaution and Nebenkosten in Germany
How much deposit can a landlord ask for in Germany? A maximum of three months' rent excluding service charges, under § 551 BGB. Any agreement that departs from that ceiling to your detriment is ineffective under § 551(4) BGB; a tenants' association can tell you what that means for your specific clause.
Can I pay the deposit in instalments? Yes. The law entitles you to three equal monthly instalments, the first at the start of the tenancy. A clause requiring the full amount up front is ineffective.
What is the difference between Kaltmiete and Warmmiete? Kaltmiete is the bare rent; Warmmiete adds the service charges, usually including heating. Compare warm rents between offers, but remember the deposit cap is calculated on the cold rent.
When must I receive the annual service-charge statement? Within 12 months of the end of the accounting period. If the landlord misses that deadline, they lose the right to claim a shortfall from you — unless the delay is not their fault. You then have 12 months from receiving it to object, on the same footing.
How long does the landlord have to return my deposit? There is no fixed statutory deadline; a reasonable review period applies, commonly three to six months, and part may be held back until the annual service-charge statement. Leave a forwarding address and an IBAN, or nothing can be returned.
The deposit rules in Germany are on your side — provided you transfer by bank, document the state of the room at both ends, and leave the country with an address and an account number on file. Check who your housing provider is on your landlord confirmation, keep every scan, and our student services cover the rest of the exit. Still looking for a room? See what is available on Studroof.
This article is informational and does not replace legal advice. Check § 551 BGB, § 556 BGB, § 538 BGB, § 548 BGB and the Betriebskostenverordnung. For a dispute with a landlord, consult a tenants' association or a lawyer. Last updated: August 2026.