Your first job brings a regular income, and with it your first own flat comes within reach. Landlords mainly check three things: whether the rent is affordable, how secure your income looks and whether the deposit can be paid. This guide shows how to connect your salary, the rental deposit (Mietkaution) and the key contract points.
Short answer: Under section 551 of the German Civil Code (BGB), a rental deposit may not exceed three months of cold rent. You may pay it in three equal monthly instalments, and the landlord must keep it separate from his own assets. How much rent you can afford depends on your net income, not on the gross salary in your offer. Last updated: October 2026.
The key points
- The deposit may not exceed three months of cold rent (Kaltmiete). Service charges are not included.
- You may pay the deposit in three equal instalments. The first instalment is due when the tenancy starts.
- The landlord must hold the deposit separately from his own assets. The interest belongs to you.
- Rent should be measured against your net income. The gross salary in the offer is only the starting point.
- Plan for the move, the deposit and the first months of liquidity before you sign the contract.
How high may the rental deposit be?
The rules are set out in section 551 BGB. Under this provision the rental security may amount to at most three times the monthly rent. The reference figure is the cold rent, meaning the rent without service charges that are shown as a flat fee or advance payment. A higher demand is invalid, even if it appears in the contract.
Assumption: the cold rent for a one-room flat is 650 euros and the warm rent including service charges is 800 euros. The deposit may then not exceed 1,950 euros. The warm rent is not the basis for this calculation.
Paying the deposit in instalments and making sure it is held properly
If you pay the deposit in cash, you may pay it in three equal monthly instalments. The first instalment is due at the start of the tenancy, the following ones together with the next regular rent payments. This eases the first month, but you still have to pay the full amount.
The landlord must invest the sum with a credit institution at the usual interest rate for savings deposits with a three-month notice period. The amount must stay separate from his assets. The interest increases the security and belongs to you. There is an exception for accommodation in student or youth hostels, where interest does not have to be paid.
If you are unsure, check the tenancy agreement. If it sets a deposit above the legal maximum, you can demand the excess back.
How much rent fits your salary?
There is no fixed share of income that applies to everyone. What matters is what remains after rent, insurance, travel and savings. That is why you should calculate with your net income, not with the gross figure in the offer. The conversion is explained in the German guide Nettogehalt 2026 als Berufseinsteiger: Beispielrechnungen (in German).
| Item | Assumption | Amount |
|---|---|---|
| Net salary per month | Example value, take it from your payslip | individual |
| Cold rent | 650 euros | 650 euros |
| Service charges | Assumed 150 euros | 150 euros |
| Total warm rent | Cold rent plus service charges | 800 euros |
| Maximum deposit | Three times cold rent under section 551 BGB | 1,950 euros |
| One instalment of the deposit | One third of the maximum | 650 euros |
The table shows the principle only. If you pay the deposit in instalments, you need an extra instalment on top of the rent in the first three months. Include it in your budget before you sign.
Which documents to give the landlord
Many landlords ask for proof of income or a self-disclosure. You should provide only the information needed for the decision. This follows from the principle of data minimisation in Article 5 of the GDPR. If in doubt, ask why a specific document is needed.
- Proof of income for the last three months, if requested, ideally together with your employment contract.
- A short self-disclosure with name, job, employer and move-in date.
- Proof of the deposit, for example a transfer receipt or a guarantee certificate.
- Written confirmation of the start date and the notice periods in the tenancy agreement.
Checking the tenancy agreement: what should be in it
Before you sign, review the points that most often lead to disputes later. A tenancy agreement usually runs for years, so every clause should be clear to you.
- Cold rent and service charges are shown separately, and the service charges are clearly named as a flat fee or advance payment.
- The amount of the rental security does not exceed the legal maximum, and its investment is regulated.
- The living space and the condition of the flat are recorded in the contract or in a handover protocol.
- The notice periods for both sides are stated clearly.
A handover protocol at move-in, with photos of meter readings and existing damage, protects you when the deposit is repaid. Sign it only after reading it in full, and keep a copy.
Probation period and tenancy together
An open-ended tenancy is independent of your employment contract. Still, a job change during the probation period can affect both income and planning. The rules on probation and notice periods are explained in the German guide Probezeit: Kündigung, Urlaub und Krankenversicherung (in German). Keep a reserve that covers several months of rent in case the employment ends.
Frequently asked questions
Can the landlord ask for more than three months of cold rent?
No. Section 551 BGB limits the deposit to three times the cold rent. A different agreement is void, and you can reclaim the amount above the maximum. The rule covers money as security. Other forms of security, such as a guarantee, are treated separately under the law.
Who receives the interest on the deposit?
You, as the tenant. The interest increases the security and is repaid with the deposit at the end of the tenancy. The duty to pay interest does not apply to accommodation in student or youth hostels.
Can I only get a flat if I have a permanent contract?
The law says nothing on this. Many landlords check creditworthiness individually, though. A written confirmation from your employer or a well-prepared application helps to reduce doubts.
Should I calculate the rent from my gross pay?
No. For your planning, net income counts. If you only look at gross pay, you quickly overestimate your room for manoeuvre. Your payslip shows the difference.
How to proceed now
- Work out your net income from the first payslip or the offer.
- Set rent, service charges and the deposit instalment in one budget.
- Check the tenancy agreement for the deposit amount, the interest rule and the notice periods.
- Have the tenancy agreement explained to you before you sign.
Related guides
- Affordable student housing: strategy, portals and costs
- Liability insurance in a shared flat or your own flat
- Nettogehalt 2026 als Berufseinsteiger
- Steuerklasse beim Berufseinstieg
Sources:
- German Civil Code, section 551: limit and handling of rental security, accessed October 2026 (in German)
- Regulation (EU) 2016/679 (GDPR), Article 5: principles of processing, 2016
Last updated: October 2026. This guide is general information, not individual advice.
