If you are looking for a flat in Germany, you will see many new words: Kaltmiete, Warmmiete, Nebenkosten, Vorauszahlung. These words matter, because they decide how much money you really pay every month. In this article, we explain these terms in simple language. After reading it, you will be able to read a flat advert correctly, plan your monthly costs better and check your yearly service charge statement (Nebenkostenabrechnung).
The most important terms at a glance
Rent in Germany is usually made up of several parts. Each part has its own name:
- Basic rent (Kaltmiete) (also called Nettokaltmiete or Grundmiete): This is the price for the flat itself only. Heating, water and other costs are not included.
- Service charges (Nebenkosten) (called Betriebskosten in the law): These are costs for the building and shared use, for example water or rubbish collection. The landlord is allowed to split these costs among the tenants.
- Heating costs (Heizkosten): The costs for heating and often also for hot water. They are usually part of the service charges, but are often listed separately.
- Total rent (Warmmiete): Basic rent plus service charges plus heating costs. This is the amount you transfer to your landlord every month.
A simple formula helps: basic rent + service charges (including heating) = total rent.
Careful: not everyone uses these words in the same way. Sometimes an advert says „Warmmiete“, but heating is still not included. So always ask exactly what is included.
What is included in the service charges?
Which costs the landlord may pass on to you is set out in a law, the Betriebskostenverordnung (Operating Costs Ordinance). Passing on (umlegen) means: the landlord divides the costs for the whole building among all tenants. Typical service charges are:
- Water and sewage
- Heating and hot water
- Rubbish collection
- Property tax (Grundsteuer, a tax on the land)
- Cleaning of the stairwell and hallways
- Caretaker
- Garden maintenance
- Lift, if there is one
- Electricity for the stairwell, basement and outdoor lighting
- Building insurance
- Street cleaning and chimney sweep
Important: the landlord may only charge the costs that are listed in the rental contract (Mietvertrag). So read this part of the contract carefully.
Some costs must not be included in the service charges. These include, for example, repairs to the building and administration costs. The landlord has to pay these costs himself.
These costs come on top of the total rent
Even the total rent is often not everything. For many things, you sign your own contract and pay a provider directly:
- Electricity for your flat: lights, fridge, cooker and washing machine. Find out more under Strom anmelden.
- Gas: If your flat has its own gas heating (a so-called Gasetagenheizung), heating is often not included in the total rent. In that case you need your own contract. See Gas anmelden.
- Internet: You need your own contract for this. See Internet for your home.
- Broadcasting fee (Rundfunkbeitrag): Every household pays this fee. See Registering for the Rundfunkbeitrag.
- Insurance: Contents insurance (Hausratversicherung) protects your own belongings. Personal liability insurance (private Haftpflichtversicherung) helps if you damage something in the flat.
At the start, you also usually pay a deposit (Kaution). This is a security for the landlord. The deposit may be no more than three months' basic rent. You may pay it in three monthly instalments. When you move out and everything is in order, you get the deposit back.
How to read a flat advert
Adverts often contain abbreviations. These are common:
- KM: Kaltmiete (basic rent)
- NK: Nebenkosten (service charges)
- HK: Heizkosten (heating costs)
- WM: Warmmiete (total rent)
- zzgl.: zuzüglich, which means „plus“
- inkl.: inklusive, which means „including“
- KT or KV: Kaution (deposit)
Always compare flats by their total rent, not just by their basic rent. A flat with a low basic rent can end up more expensive if the service charges are high. Ask these questions at the viewing:
- Is heating included in the service charges?
- How is the flat heated: central heating, gas in the flat or district heating?
- How much was the last service charge statement?
- Was there an additional payment or a refund?
Rent levels vary a lot in Germany. In big cities, rents are usually higher than in the countryside. Some cities also have special rules, for example a cap on rents for new tenancies (Mietpreisbremse). Whether this applies to you depends on the federal state and the city.
Advance payments and the service charge statement
In most cases, you pay the service charges in advance every month. This is called an advance payment (Vorauszahlung). The landlord estimates the costs. At the end of the year, he works out the exact amounts. This is how it works:
- Every month you pay the total rent, meaning basic rent plus the advance payment for service charges. The easiest way is a standing order (Dauerauftrag) from your current account (Girokonto).
- Once a year you receive the service charge statement (Nebenkostenabrechnung). It shows what you actually used.
- If you paid too little, you have to pay the difference (Nachzahlung).
- If you paid too much, you get money back (Guthaben).
- After that, the landlord can adjust the monthly advance payment, meaning raise or lower it.
The landlord must send you the statement no later than twelve months after the end of the billing period. If it arrives later, he can usually no longer demand an additional payment. You will still get any credit back, though.
There is also another option: a flat-rate service charge (Nebenkostenpauschale). In that case, you pay a fixed amount every month. There is then normally no yearly statement.
How to check your statement
Mistakes in statements do happen. Check these points:
- Is the period correct? It must not be longer than twelve months.
- Does it only include costs that are agreed in the rental contract?
- Does it explain how the costs are divided, for example by square metres or by number of people?
- Is the size of your flat correct?
- Have your advance payments been deducted correctly?
- Does it include repairs or administration costs? These must not be included.
Heating costs are mostly calculated based on your actual usage. For this, there are meters or measuring devices on the radiators.
You have the right to see the receipts, for example invoices. If you do not understand something, ask the landlord in writing. You can get help from a tenants' association (Mieterverein) or a tenant advice service (Mieterberatung). There you usually pay a membership fee. Some cities also offer free advice.
Common mistakes and how to avoid them
- Only looking at the basic rent. Always calculate with the total rent, and remember electricity, internet and the broadcasting fee.
- Not saving money for an additional payment. An additional payment can be high. Put some money aside every month.
- Paying the statement without checking it. Read it carefully. You have twelve months after receiving it to raise objections.
- Not writing down meter readings when you move in. Write down the meter readings for electricity, water and heating and take photos. This helps later if there is a dispute.
- Not understanding the rental contract. Ask someone to explain unclear words before you sign. Our page Learning German helps you improve your German.
- Forgetting to register your address. After moving in, you must register your address (Anmeldung). For this you need a confirmation from your landlord. Find out more under Registering your address.
Frequently asked questions
Is electricity included in the total rent?
Usually not. You normally pay for the electricity in your flat yourself, directly to an electricity provider. If in doubt, ask your landlord.
Can the landlord increase the service charges?
After a statement, he may adjust the monthly advance payment if costs have gone up. The increase must match the statement.
What do I do if I cannot pay the additional amount?
Talk to your landlord early. Paying in instalments is often possible. If you have a low income, you can check whether you are eligible for housing benefit (Wohngeld). The housing benefit office (Wohngeldstelle) of your city or municipality is responsible.
Do I need a Schufa report to look for a flat?
Many landlords ask for one. The report shows whether you pay your bills on time. Find out more under Understanding and building your Schufa score.