How Tenants Should Hold Deposits in Germany
As a tenant in Germany, you should know exactly how a security deposit for a furnished rental should be held securely and which steps protect your refund. This easy-to-understand guide explains the key rules on deposit amounts, holding the deposit in a separate escrow account, the landlord's duty to verify, and typical accounting deadlines. You will learn how to create move-in/move-out reports, which receipts to keep, and how to proceed with formal letters if claims are disputed. The text gives concrete action steps, official authorities and template terms so that, as a tenant without legal knowledge, you can avoid disputes or respond in a targeted way. At the end you will find FAQs, a step-by-step guide and notes on court proceedings before the local court.
What tenants need to know about deposits
The deposit serves the landlord as security for damages or outstanding claims. In Germany, the legal basis for tenancy relationships is regulated in the Civil Code (BGB)[1]. For tenants it is important: the usual maximum amount, the form of holding the deposit and the deadlines for repayment after moving out.
Practical checkpoints
- Check the deposit amount (deposit): usually up to three net cold rents.
- Demand a deposit account (separate deposit account): it must not be mixed with the landlord's operating funds.
- Create a move-in report (document): document photos and meter readings.
If in doubt, request written confirmation of the deposit's location, amount and interest. Keep receipts for all payments and retain bank statements. In furnished flats, disputes over wear and tear as well as inventory are common; therefore document condition and inventory on move-in and move-out.
How landlords should hold the deposit — and what tenants should check
Landlords may usually demand the deposit in cash or by transfer; however many tenants insist on a deposit account that is managed separately and bears interest. If unclear, tenants can request written details about how the deposit is held and insist on compliance with legal obligations. Legal procedures to enforce claims are handled by the competent local court; procedural rules are found in the Code of Civil Procedure (ZPO)[2].
Typical dispute issues
- Repair and maintenance claims (repair): who pays for normal wear and tear?
- Missing evidence for deductions (document): request receipts and cost estimates.
- Deadlines for repayment (deadline): observe common accounting periods.
When it goes to court
Many tenancy disputes end up at the local court; in the final instance the Federal Court of Justice (BGH) decides on fundamental rental law questions[3]. Before suing, check: do you have all receipts, a move-in/move-out report and a clear calculation of claims? Legal action is possible if amicable settlement fails.
FAQ
- Who receives the interest on the deposit?
- The interest is due to the tenant; with a separate deposit account interest is credited to the account and taken into account at repayment.
- How long may the landlord withhold the deposit?
- The landlord must settle accounts within a reasonable time after the tenancy ends; usual deadlines range from six months up to twelve months for final accounting, depending on the verification effort.
- Can the landlord simply make deductions without evidence?
- No. Deductions must be substantiated by the landlord; as a tenant you can demand receipts and invoices.
How-To
- Document the condition on move-in with photos and a signed report (document).
- Pay the deposit with proof and request a receipt or payment confirmation (deposit).
- Request written information on how the deposit is held and interest, if not provided (form).
- After moving out, request a written settlement and set a deadline for repayment (deadline).
- If no agreement is reached, prepare documents for a claim at the local court: reports, photos and bank statements (court).
