First Month's Rent and Deposit: When and How Do You Pay?

The lease is signed, but the first bank transfer raises new questions for many first-time renters: does the deposit have to go out in one lump sum? Exactly when is the first rent due? Not knowing this mechanic makes it easy to miss a deadline or transfer more than necessary.

The deposit can be paid in three installments

Under Section 551(2) BGB, tenants have the right to pay the deposit in three equal monthly installments, even if the lease suggests otherwise. The first installment is due together with the start of the tenancy, the following two with the next two rent payments. If a landlord asks for the full deposit upfront in one sum, that's common practice, but the tenant can insist on the statutory right to installments.

When the first rent is actually due

Under Section 556b BGB, rent is due in advance by the third working day of the month at the latest, unless the lease states otherwise. For your move-in month, that means: even if the handover only happens partway through the month, the full or a prorated month's rent is usually due in advance, not only after you've actually moved in. Checking the lease shows whether a prorated calculation for the first month has been agreed.

Bank transfer, standing order, or direct debit

The deposit is almost always paid by bank transfer into a separate deposit account, which the landlord must hold in trust for the tenant. For ongoing rent, consumer advice portals recommend a standing order instead of a manual transfer every month, since a late or forgotten payment can, in the worst case, risk termination for payment default. A direct debit arrangement, where the landlord collects the payment themselves, is also possible but less common, since it gives the tenant less control over the timing of the withdrawal.

What's at risk with a late payment

If rent goes fully or partially unpaid for two consecutive due dates, the landlord can terminate the lease without notice under Section 543 BGB. A standing order with sufficient account balance takes that risk off first-time renters' hands, especially in the first few months, when income and fixed costs haven't yet settled into a rhythm.

Our first apartment cost guide breaks down the total deposit amount and other one-time costs before move-in in detail, and our starting capital guide describes an alternative to a cash deposit.

Frequently Asked Questions

Do I have to pay the deposit all at once?

No, under Section 551(2) BGB the deposit can be paid in three equal monthly installments, starting with the beginning of the tenancy.

When is rent due?

By the third working day of the month at the latest, in advance, unless the lease specifies otherwise.

What happens if rent is paid late?

If payment is missed or falls short over two consecutive due dates, the landlord can terminate without notice under Section 543 BGB. A standing order reduces this risk.