Open Deposit Account: Tenants' Rights in Germany

As a tenant in Germany you want your security deposit safely placed and returned without hassle. This guide explains in plain language how a separate deposit account works, what tenant rights exist regarding statements and repayment, and which deadlines apply. I present practical steps to open a deposit account, which proofs and forms are important, and how to act in case of dispute — for example which courts are responsible. The instructions are aimed at tenants without legal background and give concrete tips for communicating with the landlord, documenting defects and preparing a potential claim in Germany.

Why a deposit account matters

A separate deposit account keeps the security deposit separate from the landlord's assets, prevents commingling and increases transparency. Banks often offer escrow or blocked accounts so the deposit earns interest and is traceable on move-out.

Check the entitlement to the deposit

Under the rules of the German Civil Code (BGB) tenants are entitled to refund of the deposit after the tenancy ends and after settlement of service charges (Sections 535–580a BGB)^[1]. Check the final settlement and request a written breakdown before agreeing to the repayment.

Opening a deposit account: practical steps

• Choose a bank or savings bank offering a blocked deposit account and ask about conditions and interest.
• Bring your tenancy agreement, ID and if needed a landlord confirmation to the account opening; get the account named "deposit account" in writing.
• Keep receipts of the payment, request regular statements and store them for the final settlement.
• Note deadlines: the landlord may only withhold the deposit after a verifiable settlement and consideration of outstanding claims.

What to do when demanding the deposit and in disputes

If the landlord does not return the full deposit, demand a detailed written settlement and set a deadline. Document damages and request proof for withheld amounts. If the dispute continues, tenancy claims can be filed at the competent local court; court proceedings are governed by the Code of Civil Procedure (ZPO)^[2]. In appeal and revision matters the Federal Court of Justice (BGH) decides on fundamental tenancy law questions^[3].

FAQ

How long can the landlord withhold the deposit?

There is no fixed deadline, but a review and settlement period of 3 to 6 months after handing over the flat is common; in individual cases longer periods may be justified.

Can the landlord use the deposit for renovations?

Only for actually incurred and justified claims; normal wear and tear is usually not fully chargeable against the deposit.

Who helps with court steps?

Rental lawsuits are generally heard by the local court; inform yourself in advance about procedures and required documents.

How-To

1. Compare banks offering blocked deposit accounts and choose the best option.
2. Make an appointment and bring tenancy agreement, ID and landlord confirmation if needed.
3. Pay the deposit, obtain a receipt and request regular account statements.
4. After moving out, request repayment in writing and demand a settlement within a set deadline (e.g., 30 days).
5. If necessary, file a claim at the competent local court and submit your evidence.

Key Takeaways

• A separate deposit account protects the tenant's funds.
• Good documentation (photos, records, receipts) strengthens your case.
• Set clear deadlines for settlement and repayment requests.

Help and Support

• Local court search and court information
• Civil Code (BGB) – Gesetze im Internet
• Federal Court of Justice (BGH) – Case law

1. [1] Gesetze im Internet – BGB (§§ 535–580a)
2. [2] Gesetze im Internet – ZPO
3. [3] Bundesgerichtshof (BGH) – Case law on tenancy