On signing the contract, a refundable deposit is usually payable, which may amount to up to three months rent, plus VAT. When the deposit is refunded, the landlord is legally required to pay the tenant any interest earned on the deposit. The landlord can retain all or part of the deposit as necessary to repair any damage to the property caused by the tenant.

The rental contract is called a Mietvertrag, and this typically covers:

- Length of the rental agreement
- How much rent is payable, and the schedule of payments and increases
- Details of what the rent includes and excludes (e.g. communal maintenance charges)
- Period of notice which must be given by the tenant and the landlord (often 3 months)
- Deposit required and details of the interest it will earn
- Redecoration requirements
- Any insurance requirements

The tenant should also be issued with an Inventory of contents (in the case of furnished accommodation) and a copy of the House Rules. In Germany's tight regulatory climate, it is expected that both parties will follow the terms of the contract strictly, and that the tenant will observe the house rules, which cover excessive noise for example. It is apparently common for neighbours to report tenants who break these rules to the police or landlord, and the landlord can legally ask the tenant to leave under such circumstances.. Some require tenants to take out contents insurance and/or personal liability insurance.

There are Tenants' Associations in most German cities and towns which can provide information and advice, and may represent the tenant's interest in the event of any legal proceedings.

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