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Why the deposit is capped and the folder is not
The German rental market is heavily regulated in the tenant's favour once you are in, and almost unregulated in the competition to get in. Both halves matter. The protections are real. The deposit is capped by the civil code at three months' Kaltmiete, it must be held in an account separate from the landlord's own money, it earns interest that belongs to you, and — a point many tenants do not know — you are entitled to pay it in three monthly instalments rather than as a lump sum. Lesson 68 has Alex use that right. Rent increases are limited too. A landlord cannot raise the rent at will: increases are tied to the local Mietspiegel, the official rent index, with caps on how much and how often. Some cities also have the Mietpreisbremse, which limits what may be charged to a new tenant. And since 2015 the Bestellerprinzip means whoever engages the estate agent pays them, so a tenant should not be asked for a Maklerprovision on an ordinary letting. Getting in is the hard part. Viewings with dozens of applicants are normal in Berlin, Munich, Hamburg and Frankfurt, and the decision is the landlord's to make on almost any basis. That is why the folder matters, and why being able to hand over a complete set on the spot is worth more than a good impression. If your income is thin or new, a Bürgschaft — a guarantee from someone with German income — is the usual remedy. Two things worth knowing before you sign anything. A flat advertised as possibly requiring an Abstandszahlung or a payment for the previous tenant's fittings is a gray area — the kitchen may legitimately be sold to you, but a fee simply for the tenancy is not lawful. And joining a Mieterverein, the local tenants' association, costs a modest annual subscription and comes with legal advice; in a market like this it is the single most useful thing a new arrival can join.