Deposit & Index Rent: Clarity for Tenants in Germany

Many tenants in Germany are unsure how the security deposit is calculated transparently and correctly for a lease with index rent at move-out. This guide explains in plain language which rules apply to deposit accounts, which deadlines and documentation obligations tenants and landlords must observe and what to watch for with deductions. You will learn which sections of the BGB are relevant, when a settlement is due and which courts are responsible if a dispute arises. Practical examples show how to collect evidence, check a settlement and initiate formal steps so that you as a tenant in Germany can enforce your rights. At the end you will find practical wording suggestions for letters and information on official forms as well as links to competent authorities. Read on to see step by step how to check your deposit and, if necessary, enforce it in court.

What applies to deposit and index rent?

With index rent the rent changes according to the consumer price index; however, the deposit remains a separate claim of the landlord and must not be automatically tied to index adjustments. Landlords must justify and prove deductions; tenants are entitled to a comprehensible settlement and supporting documents.^[1]

• Deposit account: The deposit should be managed separately and documented transparently.
• Deadlines: Request the settlement within usual deadlines and respond promptly to inquiries.
• Deductions: Any deductions must be listed and justified individually.
• Keep evidence: Store photos, invoices and bank statements as proof.

How do I check the settlement?

First check whether the settlement clearly states the period, amounts and any index adjustments. Compare rent payments and index calculations with your own records and request missing documents in writing.

• Index comparison: Check how the index adjustment was calculated and whether the base data is correct.
• Bank statements: Request bank statements or receipts that show deposit movements.
• Request forms: Ask for a detailed breakdown and receipts within a deadline.
• Set deadlines: Name a reasonable deadline for submitting missing evidence.

Practical steps for disputed deductions

If the landlord does not sufficiently document deductions, you should object in writing, request evidence and, if necessary, propose an amicable settlement. If no agreement is reached, legal action may be possible; in many cases the local district courts are competent.

• Write an objection: Draft a short, factual letter with a deadline for submission of evidence.^[3]
• Compile evidence: Include photos, invoices and bank statements in an organized manner.
• Legal steps: File an application with the competent district court if necessary.

FAQ

How long may the landlord keep the deposit?

There is no blanket period; typical settlement periods are three to six months, in individual cases longer, for example with outstanding operating costs.

What evidence must the landlord provide?

The landlord must substantiate all deductions with original receipts, invoices or bank statements; general flat rates are not sufficient.

When can I file a claim at the district court?

If the landlord does not provide a comprehensible settlement and receipts within the set deadline, you can file a claim at your local district court.

How-To

1. Check deadlines: Set a written deadline (e.g. 14 days) for submission of missing evidence.
2. Collect evidence: Organize photos, invoices and bank statements and make copies.
3. Send objection: Send an informal letter by registered mail or email with read receipt.
4. Court resolution: If necessary, file a claim at the district court; jurisdiction is usually the local district court.

Key Takeaways

• Keep all payment receipts and photos organized.
• Request missing documents in writing and set deadlines.
• If deductions remain unclear, consider legal action and seek advice.

Help and Support

• Gesetze im Internet – BGB §§ 535–580a
• Bundesgerichtshof – Decisions
• Information on district courts – justiz.de

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1. [1] Gesetze im Internet – BGB
2. [2] Bundesgerichtshof – Decisions
3. [3] Federal Ministry of Justice