Tenants: Guarantee Instead of Deposit in Germany

How does a guaranty work?

A guaranty is an agreement where a third person (guarantor) is liable for the landlord’s claims if the tenant does not pay. Unlike a cash security deposit, no money is placed on a deposit account; the guaranty often remains only as a document. The legal framework for tenancy contracts, landlord and tenant duties and the return of the deposit is regulated in the German Civil Code (BGB) in §§ 535–580a.^[1]

• Lower liquidity burden: No large cash deposit to pay immediately.
• Easier everyday management compared with a separate deposit account.
• Liability risk: the guarantor is liable for outstanding claims by the landlord.
• Conditions and deadlines in the guaranty can limit claims.

Practical steps for tenants

1. Check the tenancy agreement and every guaranty form carefully.
2. Document the condition of the flat at move-in and move-out with photos and a handover protocol.
3. Observe deadlines for damage claims and deposit repayment.
4. In case of dispute: you can file an eviction or tenancy lawsuit at the competent local court; observe the rules of the Code of Civil Procedure (ZPO).^[2]

Forms & Authorities

For many procedures there are official templates and forms. Example: a termination letter template from the Federal Ministry of Justice can be used when moving out or terminating a contract; include date, address, contract number and your signature and send it by registered mail.^[3]

For court proceedings the local court (Amtsgericht) is often the first instance for tenancy cases; higher instances include regional courts and the Federal Court of Justice (BGH).

FAQ

Can a guaranty replace the deposit?

Yes, if landlord and tenant agree this contractually; pay attention to the exact wording and the guarantor’s obligations.

Is the guarantor automatically liable for all claims?

The guarantor is liable only within the written limits of the guaranty and according to the agreed conditions.

What to do if the landlord does not return the deposit?

Collect evidence, send a written request and consider whether a lawsuit at the local court is necessary.

How-To

1. Read all clauses in the tenancy agreement and request copies of all guaranty documents.
2. Create a handover protocol with photos when you move in.
3. Note deadlines for defect notices and deposit refund claims.
4. In conflicts contact the local court or seek legal advice.

Help and Support / Resources

• Forms & templates (Federal Ministry of Justice)
• Laws online: BGB, ZPO (Gesetze im Internet)
• Federal Court of Justice (BGH)

1. [1] Gesetze im Internet — BGB §§ 535–580a
2. [2] Gesetze im Internet — Zivilprozessordnung (ZPO)
3. [3] Federal Ministry of Justice — Template forms