Guarantee Instead of Deposit: Tips for Tenants in Germany

Many tenants in Germany consider using a guarantee instead of a cash security deposit. A guarantee can provide liquidity but creates different obligations and risks: a guarantor often becomes directly liable to the landlord, and the exact rules are set out in the BGB.^[1]

What is a guarantee?

A guarantee is the written commitment of a third party (guarantor) to cover rental claims. Unlike a cash deposit, the guarantor pays when the claim becomes due instead of the tenant. Pay attention to duration, maximum amount and termination conditions.

When is a guarantee suitable instead of a deposit?

• If you cannot pay a large cash deposit, a guarantee preserves liquidity.
• If the guarantor is solvent and willing to assume short-term liability, the landlord may agree.
• Be aware of the risk that friends or family may have to pay in case of default.

Which documents do you need?

Collect these documents before you offer or agree to a guarantee:

• Guarantee contract or declaration in writing.
• Identity documents of tenant and guarantor (copy of ID card).
• Evidence of existing deposit agreements or bank movements if relevant.
• Written correspondence with the landlord, especially agreements on the deposit arrangement.

Legal notes and courts

General rules of the BGB apply in tenancy law, in particular the provisions on the lease (§§535–580a BGB).^[2] In disputes the competent local court (Amtsgericht) usually decides; important precedents come from the BGH.^[3]

FAQ

Can a guarantee fully replace the deposit?

Yes, if the landlord and tenant agree. Check the written agreement carefully.

How do I document the guarantee correctly?

Keep the signed guarantee contract, identity documents and all related emails or letters.

What happens if the guarantor does not pay?

The landlord can first pursue the tenant and, in case of default, hold the guarantor liable; court action is possible.

How-To

1. Collect the guarantee contract, ID copy and rental contract copies.
2. Send a short written confirmation to the landlord with details of the guarantee.
3. Note deadlines and the term in your calendar and review termination clauses.
4. Inform the guarantor proactively about potential claims and keep evidence.
5. In case of dispute contact the competent local court or a legal advice center.

Help and Support / Resources

• Local Court: competent local court for tenancy disputes
• Legal texts and forms: BGB §§535–580a (Gesetze im Internet)
• Federal Court of Justice (BGH): decisions and principles

1. [1] BGB §765 Guarantee — Gesetze im Internet
2. [2] BGB §535 Lease — Gesetze im Internet
3. [3] Federal Court of Justice (BGH) — Decisions