Evaluate Tenancy Deposit Guarantee 2025 Germany
What is a tenancy deposit guarantee?
A tenancy deposit guarantee replaces the traditional cash deposit: instead of depositing money you provide a guarantor's declaration from a provider. For tenants this can save liquidity, but fees and specific termination periods apply. Check duration, costs and conditions in writing before you agree. Also check whether the guarantor is a bank or an insurer and what securities are required.
What tenants should watch for
- Price: Compare annual fees and possible additional costs.
- Contract terms: Check termination periods, deposit duration and transferability.
- Deadlines: Note refund deadlines after the tenancy ends.
- Documentation: Keep all emails, payment receipts and the guarantee contract.
- Condition of the flat: Document defects on move-in with photos and a handover report.
Contract clauses, costs and rights
Read the provider's T&Cs carefully: some providers charge processing fees or automatically renew contracts. As a tenant you are protected by the German Civil Code (BGB)[1], for example regarding landlord duties and deposit refunds. In disputes the Local Court (Amtsgericht) is competent; for fundamental legal questions the Federal Court of Justice (BGH) rules.[3][2]
Quick check: Questions before signing
- Who is the guarantor and how is their creditworthiness handled?
- What fees apply annually and one-off?
- How do I terminate the guarantee and what deadlines apply?
- Which documents will I receive at signing (contract, right of withdrawal, contact person)?
How to
- Compare several guarantee offers in terms of fees, duration and termination rules.
- Read the contract completely and mark automatic renewals or early termination penalties.
- Document the flat condition on move-in with photos and a handover report to counter later claims.
- Set deadlines in your calendar for termination and refund of the guarantee.
- If a legal dispute arises, prepare files for the local court and consider seeking legal assistance.
Frequently Asked Questions
- Can the landlord refuse a tenancy deposit guarantee?
- Yes, if the landlord explicitly requires a cash deposit in the lease; many landlords accept guarantees. Clarify acceptability before signing.
- How and when do I get the guarantee refunded?
- After the tenancy ends the landlord must check possible claims; afterwards the release or refund follows according to contractual deadlines.
- What rights do I have if the guarantor does not pay?
- You can take action against the guarantor; in disputed cases the local court is competent and the rules of civil procedure apply.
Help and Support / Resources
- BGB information on tenancy law
- BGH – decisions on tenancy law
- Federal Ministry of Justice – court information
