Assess Deposit Guarantee for Tenants in Germany

As a tenant in Germany, you often face the question of whether a deposit guarantee is sensible. This guide plainly explains how guarantees work, what costs and risks tenants may face, and what alternatives to the classic cash deposit exist. You will learn which clauses in the guarantee contract are important, how to check the guarantor's creditworthiness, and which deadlines and rights apply to withholding or refunding the deposit. Practical steps show when to involve the local court and which official documents are helpful. The goal is that you, as a tenant, can make informed decisions and secure your deposit. We provide examples, checklists and tips for submitting evidence.

What is a deposit guarantee?

A deposit guarantee is an agreement in which a guarantor is liable to the landlord for the deposit instead of the tenant depositing cash. Legally, the obligations from the rental contract remain with the tenant; the guarantee serves the landlord as security. The fundamentals of the tenancy and refund obligations are set out in the provisions of the BGB, especially regarding tenancy obligations and deposits^[1].

Advantages and risks

• Lower upfront payments for tenants instead of high cash deposits.
• Faster move-in because no blocked account or cash deposit is required.
• Check the guarantor's creditworthiness: request employer statements, payslips or self-disclosures.
• Additional costs: guarantee fees or annual charges may apply.
• Risk: claims against the tenant can remain despite the guarantee, and the guarantor may become liable to pay.

Checklist for tenants

• Guarantor creditworthiness: document identity, income proofs and contract terms.
• Check duration and notice periods: verify termination and expiry dates.
• Contract text: watch for clear wording on amount, triggering conditions and refund.
• Collect receipts: rent payments, statements and correspondence for potential disputes.

Forms and authorities

There is no uniform nationwide form for refunding deposits; in legal proceedings the rules of the Code of Civil Procedure apply^[2] and the lawsuit is usually filed at the competent local court. Important documents to keep ready are: rental agreement, handover protocol, payment receipts and the guarantee agreement. Sample termination letters or templates for claim letters are useful as guidance; official law texts and court offices can be found in the official resources below.

If a dispute arises

First try to resolve the matter in writing with the landlord and set a reasonable deadline for repayment. Collect evidence (photos, statements, payment proofs). If the landlord does not respond, the next step is often a written payment request or reminder; if ignored, a court claim at the local court may be necessary. Procedural rules of the ZPO apply and higher courts' rulings such as the Federal Court of Justice are considered^[2][3].

FAQ

What is the difference between a cash deposit and a deposit guarantee?

A cash deposit is money the tenant pays; with a guarantee a third party is liable to the landlord, and the actual payment depends on contractually defined conditions.

Can the landlord refuse a guarantee?

Yes, landlords can agree on security forms; however, they must clearly specify the arrangement in the tenancy agreement and must not discriminate arbitrarily.

How do I demand refund of the deposit?

Send a written demand to the landlord with a deadline and copies of receipts; if refused, file a claim at the local court and present all evidence.

How-To

1. Document: collect the rental agreement, handover protocol, payment records and the guarantee agreement.
2. Set deadlines: request the refund in writing and set a clear deadline (e.g. 14 days).
3. Written claim: send a registered letter or verifiable letter with a concrete claim amount.
4. Court action: if refused, file a lawsuit at the competent local court and submit your evidence.

Key takeaways

• Keep all contracts and payment receipts safe to prove claims.
• Compare guarantee fees and conditions with the classic cash deposit.
• Act within deadlines to preserve your rights.

Help and Support / Resources

• Gesetze im Internet – § 535 BGB and related provisions
• Code of Civil Procedure (ZPO) – gesetze-im-internet.de
• Federal Court of Justice – decisions on tenancy law

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1. [1] § 535–580a BGB — Gesetze im Internet
2. [2] ZPO — Code of Civil Procedure — Gesetze im Internet
3. [3] Federal Court of Justice — Official decisions