BRAUN & CIE.Real Estate
Letting: careful and secure
Guide · Letting

Letting: careful and secure.

Setting the rent, choosing tenants, contract, deposit and handover: what landlords in Dresden should know.

Madeleine BraunAs of October 2026 · 3 min read

The right rent

The basis is the rent index, comparable flats and the fit-out. Dresden applies the rent cap: for new lettings, the rent may generally be no more than 10% above the local comparative rent. Exceptions apply to new builds and comprehensively modernised flats, among others.

Choosing tenants

A tenant self-disclosure form, proof of income, a credit report and a certificate from the previous landlord confirming no rent arrears form the basis. The personal conversation is just as important. The General Equal Treatment Act must be observed: questions about religion, origin or family planning are not permitted.

Contract and deposit

Use an up-to-date tenancy agreement, as outdated clauses, for example on cosmetic repairs, are often invalid. The deposit is at most three months' net rent, the tenant may pay it in three instalments, and you must keep it separate from your own assets.

Handover and service charges

At handover, record meter readings, keys and the condition of all rooms in a handover report. The service charge statement must reach the tenant no later than twelve months after the end of the accounting period.

Rent increases and termination

Increases up to the local comparative rent are possible no earlier than 15 months after the tenant moves in. In Dresden, a cap of 15% over three years applies. Termination by the landlord requires a legitimate interest, such as personal use. Have such steps reviewed by a lawyer.

This guide provides a general overview and does not replace legal, tax or financing advice.

Frequently asked questions

Letting in brief.

Who pays the agent when a property is let?

For residential property, the client pays principle (Bestellerprinzip) applies: whoever instructs the agent pays. If you instruct us as the owner, you bear the commission. Tenants only pay if they have expressly instructed us to search and we have searched for a flat exclusively for them.

How do I find the right rent?

The basis is the rent index, comparable flats and the fit-out. Dresden applies the rent cap: for a new letting, the rent may generally be no more than 10% above the local comparative rent, with exceptions for new builds and comprehensively modernised flats, for example. We determine a market rent and explain our reasoning clearly.

How do you choose tenants?

With a self-disclosure form, proof of income, a credit report and often a certificate confirming no rent arrears. The personal conversation is just as important. In the end, you decide. We prepare the selection so that the decision is easy.

How high can the deposit be?

At most three months' rent excluding service charges. The tenant may pay it in three equal monthly instalments. You must keep the deposit separate from your own assets, for example in a rent deposit account.

Do I have to pay commission as a tenant?

No, if the landlord instructed us. The landlord then pays the commission. For our rental flats, you incur no agent's fees.

Which documents do I need for an application?

A self-disclosure form, a copy of your ID, proof of income for the last three months, a credit report and, if possible, a certificate from your previous landlord confirming no rent arrears. Complete documents give you an advantage.

What must a tenancy agreement contain?

The parties, the rented property, rent and service charges, start and duration, deposit, provisions on cosmetic repairs, minor repairs and pets, and the house rules. Use an up-to-date agreement, as outdated clauses are often invalid.

What is a graduated rent and what is an index-linked rent?

With a graduated rent (Staffelmiete), future increases are already set out in the contract with amount and date. With an index-linked rent (Indexmiete), the rent follows the consumer price index. In both cases, further increases to the comparative rent are excluded. Which option suits depends on the property and the objective.

How often may I increase the rent?

Up to the local comparative rent, no earlier than 15 months after moving in or the last increase, and in principle by no more than 20% within three years. Dresden currently applies a reduced cap of 15%. Increases after modernisation follow their own rules.

Which service charges can I pass on?

Operating costs under the Operating Costs Ordinance (Betriebskostenverordnung) can be passed on, such as property tax, water, waste collection, cleaning, garden maintenance, insurance and caretaker. Management costs and maintenance cannot be passed on. The allocation must be agreed in the tenancy agreement.

Madeleine BraunManfred Braun

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