Renting out property in Germany: a landlord guide

1. Before offering the property

• Check whether Mietpreisbremse applies in the designated local area and whether an exception is relevant
• Prepare Energieausweis information and a legally reviewed residential contract
• Decide which Betriebskosten are contractually recoverable
• Set up a separate deposit account process
• Plan maintenance, emergency contacts and data protection
• Check WEG and municipal restrictions, especially for short-term letting

2. Kaltmiete, Warmmiete and Nebenkosten

Kaltmiete is rent for the space. Betriebskosten/Nebenkosten are agreed running costs; heating costs are handled under additional rules. Warmmiete is the recurring total before services the tenant contracts separately.

3. Mietpreisbremse is local and conditional

The federal framework can limit starting rent in state-designated tight housing markets, generally by reference to the local comparative rent. It does not apply everywhere and contains exceptions, including relevant new-build and comprehensive-modernisation cases.

Check the current state ordinance, local Mietspiegel and disclosure duties before setting rent. Do not apply a single national cap.

4. Mietkaution

For residential rent, a cash security is capped at three months’ net cold rent. The tenant may pay it in three equal monthly instalments, with the first due at the start of the tenancy. It must be held separately under the statutory rules.

5. Nebenkostenabrechnung

Where the tenant pays advances, the landlord normally accounts over a twelve-month period and must send the statement within twelve months after that period ends. Later additional claims are generally excluded unless the delay was outside the landlord’s control. The tenant can inspect supporting records.

6. Wohnungsgeberbestätigung

The housing provider must issue the confirmation needed for Anmeldung within the statutory process. It confirms the actual move-in; it is not the rental contract. Cross-check the Anmeldung guide for required details.

7. Rental income and tax

Rental income generally enters German income-tax reporting. Depending on the facts, allowable expenses can include financing interest, maintenance, management, depreciation and property costs. Loan principal repayment is not the same as deductible interest.

AfA depends on the building share, completion/acquisition facts and current law; land is not depreciated. Do not reuse one generic 2% assumption. Obtain tax advice for allocation, renovation and cross-border ownership.

8. Short-term rentals

Holiday and platform letting may face municipal Zweckentfremdung restrictions, permits or registration, tax duties and WEG/contract restrictions. City rules differ sharply; check the municipality before listing.