First Apartment, First Salary: Your Financial Starter Plan
To rent your first apartment in Germany, prepare €4,000-6,000: deposit Kaution (up to three monthly cold rents by law), first rent, setup costs, and insurance [1]. Then you need a money management system — not because you don't know how, but because nobody taught you.
Psychological Dimension
Your first apartment is a symbol of adulthood, independence, financial capability. When colleagues buy apartments while you're renting a room — comparison appears. When parents lived in state housing until 35 and didn't think about rent — you have no reference model.
Add the need to make dozens of financial decisions simultaneously (which furniture, which insurance, how much to save), and you get classic choice overload. This is normal. This is temporary. This is not an indicator of your competence.
Starting Capital: How Much You Need
Realistic estimate for German cities (2025):
| Expense Item | Amount | Explanation |
|---|---|---|
| Kaution (deposit) | €1,500-2,700 | By law maximum 3 monthly Kaltmiete (cold rent without utilities) [1] |
| First rent | €800-1,200 | Warmmiete (warm rent with utilities) for first month |
| Maklergebühr (broker fee) | €0-1,800 | Since 2015, paid by whoever ordered the service (usually landlord) [2] |
| Setup (furniture, appliances) | €500-2,000 | Depends on strategy: new vs. used |
| Haftpflichtversicherung (liability insurance) | €50-80/year | Must arrange before moving in [3] |
| Contingency reserve | €500 | First repair, replacement of broken items |
| Total | €4,000-6,000 | Minimum for safe start |
If you don't have this amount:
- Rent a room in WG (Wohngemeinschaft, shared apartment), not a separate apartment — deposit is 2-3x smaller
- Buy furniture on eBay Kleinanzeigen, Facebook Marketplace — save 60-80%
- Some landlords accept Mietkautionsbürgschaft (bank guarantee instead of cash deposit) — ask [4]
Money Management System: The 60-30-10 Rule
The classic American 50-30-20 rule (50% on needs, 30% on wants, 20% on savings) doesn't work in German cities. Rent eats 30-40% of salary, plus taxes are higher. Realistic version — 60-30-10:
| Category | Percentage | What's Included |
|---|---|---|
| Fixed costs + essentials | 60% | Rent, insurance, transport, groceries, utilities |
| Living + entertainment | 30% | Restaurants, travel, hobbies, clothing |
| Savings + investments | 10% | Emergency fund → long-term savings |
Example: net salary €2,500/month
- €1,500 — rent €800, groceries €300, transport €100, insurance €80, utilities €20, rest for essentials
- €750 — restaurants, sports, travel, entertainment
- €250 — savings
Psychologically important: 30% on living is not waste. It's investment in adaptation, social connections, mental health. Don't blame yourself for coffee with colleagues — it's part of integration.
When the rule doesn't work:
- First 6 months: setup costs are higher, savings may be 0% — this is normal
- Income below €1,800 net: 60% goes to survival, 10% savings unrealistic — focus on increasing income
- Debt from country of origin: close debts first, then savings
German Terms You Need to Know
| German Term | English Translation | Explanation |
|---|---|---|
| Kaltmiete | Cold rent | Rent without utilities (heating, water) |
| Warmmiete | Warm rent | Rent with utilities |
| Nebenkosten | Additional costs | Utilities: heating, water, trash, stairwell cleaning |
| Kaution | Deposit | By law maximum 3 monthly Kaltmiete, returned when moving out (if no damage) |
| Schufa | Credit bureau | Organization collecting credit history data; landlords require report |
| Haftpflichtversicherung | Liability insurance | Covers damage you accidentally cause to others (broke someone's phone, flooded neighbors) — critically important |
| WG (Wohngemeinschaft) | Shared apartment | Renting a room in apartment with other tenants, shared kitchen/bathroom |
Checklist for First Apartment
Before search:
- Save starting capital (minimum €4,000)
- Order free Schufa report at meineschufa.de [5]
- Prepare documents: Arbeitsvertrag (employment contract), last 3 Gehaltsabrechnungen (pay slips), passport copy
- Arrange Haftpflichtversicherung (€30-80/year) — landlords often require
During viewing:
- Clarify what's included in Nebenkosten (sometimes internet, sometimes not)
- Check condition: cracks, mold, windows, heating functioning
- Ask about Übergabeprotokoll (handover protocol) — protects your deposit
After signing:
- Register at Bürgeramt (Anmeldung) within 14 days [6]
- Notify bank, insurance, employer, Finanzamt of new address
- Create detailed Übergabeprotokoll with photos — your protection when returning Kaution
First month:
- Set up automatic rent payments (Dauerauftrag)
- Take meter readings (Strom, Wasser) monthly
- Create budget using 60-30-10 model, track for 3 months
Setup Strategy
| Strategy | Cost | For Whom | Pros/Cons |
|---|---|---|---|
| All new from IKEA | €2,000-4,000 | Stable income, planning to live 3+ years | ✅ Unified style, warranty ❌ High initial costs |
| All used (eBay, Facebook) | €500-1,000 | Limited budget, temporary housing | ✅ Minimal costs ❌ Takes time to find, possible defects |
| Hybrid: used furniture, new appliances | €1,000-1,500 | Balance of budget and quality | ✅ Save on furniture, appliance reliability ❌ Requires selectivity |
Critical to buy immediately (new):
- Mattress (back health, hygiene)
- Work chair (if working from home)
Can buy used without risk:
- Tables, shelves, wardrobes, dressers
- Dishes, kitchenware
- Decor, lamps
When to Seek Help
| Situation | Whom to Contact |
|---|---|
| Landlord demands deposit over 3 monthly Kaltmiete | Mieterschutzbund (tenants' rights association) [7] |
| Don't understand rental contract terms | Housing lawyer or Mieterschutzbund |
| Not returning Kaution without reason | Mieterschutzbund or lawyer |
| Income doesn't cover expenses 3+ months in a row | Financial advisor, Schuldnerberatung (debt counseling — free) [8] |
What to Avoid
| ❌ Don't Do | Why | ✅ Alternative |
|---|---|---|
| Rent apartment at budget limit | Rent over 35% of income leaves no reserve for unexpected | Rent cheaper or find roommate (WG) |
| Pay Kaution in cash without receipt | No proof of payment — may not get money back | Bank transfer with note "Kaution" or written receipt |
| Buy all furniture on credit | Interest burden eats budget | Start with minimum, buy more as you can afford |
| Not reading Mietvertrag (rental contract) | Miss important terms (Kündigungsfrist, Schönheitsreparaturen) | Translate through DeepL, ask German-speaking friend or lawyer |
Long-Term Perspective
First apartment is a training ground. You learn:
- Managing fixed costs
- Building emergency fund
- Making financial decisions under pressure
- Distinguishing needs from wants
After 2-3 years you'll have:
- Understanding of your real expenses
- Credit history in Schufa
- Experience negotiating with landlords
- Basis for deciding: continue renting or save for purchase
Don't compare yourself to those who bought at 25 — they have a different starting point. Your task is to build a sustainable system, not chase others' milestones.
Sources
- § 551 BGB (Bürgerliches Gesetzbuch) — Begrenzung der Mietsicherheit. Bundesministerium der Justiz. https://www.gesetze-im-internet.de/bgb/__551.html
- Bestellerprinzip bei der Maklerprovision. Bundesministerium der Justiz, 2015. https://www.bmj.de/DE/themen/verbraucherschutz/mietrecht/bestellerprinzip/bestellerprinzip_node.html
- Haftpflichtversicherung: Warum sie so wichtig ist. Verbraucherzentrale, 2025. https://www.verbraucherzentrale.de/wissen/geld-versicherungen/weitere-versicherungen/haftpflichtversicherung-warum-sie-so-wichtig-ist-5000
- Mietkautionsbürgschaft als Alternative zur Barkaution. Stiftung Warentest, 2024. https://www.test.de/Mietkaution-Buergschaft-statt-Bargeld-5045622-0/
- Schufa-Auskunft kostenlos bestellen. meineSCHUFA.de. https://www.meineschufa.de/
- Anmeldung beim Einwohnermeldeamt. Bundesmeldegesetz § 17. https://www.gesetze-im-internet.de/bmg/__17.html
- Deutscher Mieterbund e.V. — Interessenvertretung für Mieter. https://www.mieterbund.de/
- Schuldnerberatung — kostenlose Beratung bei Überschuldung. Bundesarbeitsgemeinschaft Schuldnerberatung e.V. https://www.bag-sb.de/