Kaltmiete vs Warmmiete: understanding how rent works in Germany

If you are looking at apartment listings in Germany, you will see two rent numbers on every listing: Kaltmiete and Warmmiete. Understanding the difference is essential — it affects your budget, your deposit, and your annual utility settlement.

What is Kaltmiete?

Kaltmiete (cold rent) is your base rent. It covers only the use of the apartment itself — no utilities, no services, no heating. This is the figure used to calculate your deposit (max 3 months' Kaltmiete under § 551 BGB) and the figure referenced in rent cap regulations (Mietpreisbremse).

What is Warmmiete?

Warmmiete (warm rent) is the total monthly amount you pay: Kaltmiete plus Nebenkosten (ancillary costs). Warmmiete is what actually leaves your bank account each month.

What are Nebenkosten?

Nebenkosten (ancillary costs or utility charges) typically include heating, water, garbage collection, building insurance, property tax share, stairwell cleaning, and building maintenance. What is usually not included (and paid separately): electricity, internet, and TV/radio license fee (Rundfunkbeitrag, €18.36/month in 2026).

The Nebenkosten amount in your contract is an advance estimate. The actual costs are settled annually through the Nebenkostenabrechnung.

The Nebenkostenabrechnung (annual utility settlement)

Once a year, your landlord must send you a Nebenkostenabrechnung — a statement comparing what you paid in advance versus the actual costs. You will either owe extra (Nachzahlung) or receive a refund (Guthaben). The landlord must send this within 12 months of the billing period ending. If they are late, they cannot charge you for any shortfall.

This is a common source of disputes. Check the statement carefully. If the numbers look wrong, your Mieterverein can review it for you.

Why Kaltmiete matters for your deposit

Your deposit is capped at 3 months' Kaltmiete, not Warmmiete. If a landlord calculates the deposit based on the Warmmiete, the excess is void. For example: if your Kaltmiete is €700 and Warmmiete is €900, your maximum deposit is €2,100 (3 × €700), not €2,700.

Common traps for expats

The most common mistake is assuming Warmmiete is your total housing cost. Electricity and internet are almost always separate — budget an additional €80-150/month for these. Also, if your heating consumption is higher than estimated, the annual Nebenkostenabrechnung can result in a significant extra payment. Keep this in mind when budgeting.

For the full picture on German rental law, see our renting in Germany guide.

How RentalProof explains these terms in your contract review

RentalProof translates rent terminology into plain English and highlights what is included, estimated, and legally capped before you sign.