Security Deposit Account: Tenants in Germany
As a tenant in Germany, when opening a security deposit account you should know how to invest your money securely, meet deadlines and enforce your claims. This section explains clearly which legal basics apply, how a separate deposit account works and which documents you should collect so that refunds are not delayed unnecessarily. We give concrete checkpoints, a practical procedure for opening the account and which authorities can help in case of disputes. Legal references and form notes simplify preparation for talks with landlord and bank as well as possible court actions.
What a security deposit account is and which rules apply
A security deposit account is often a separate account where the rental deposit is kept. Under German law there are special rules for rental deposits, such as amount and investment, which are regulated inter alia in §551 BGB[1]. Keep account statements and agreements in writing so you can document claims at move-out.
Practical steps before opening the account
- Check the deposit amount and payment method (deposit): check whether cash, transfer or a savings book is agreed.
- Request a written agreement (form): have the exact account designation and purpose confirmed in writing.
- Document the apartment condition (evidence): take photos and checklists at handover.
- Note deadlines (deadline): record deadlines for refund and objection periods in writing.
How to open the security deposit account correctly
Arrange with the landlord that the deposit is paid into a separate account or savings book. Ask the bank to name the account as "rental security" and clarify whether interest will be credited to the account. Pay attention to proof: deposit receipt, account statement and a written confirmation from the landlord make later claims easier.
- Secure the deposit receipt (deposit): get a receipt when paying in and ensure a clear purpose reference.
- Check the account name (entry): ensure the account is clearly designated as a rental deposit.
- Document interest treatment (evidence): note how interest is handled and request annual account statements.
What to do in case of a dispute over refund
If the landlord claims deductions, request a detailed breakdown. If there is no agreement, you can have the local court decide whether deductions are justified; rental disputes are usually heard at the Amtsgericht[2]. Before suing, document all receipts, communication and deadlines.
- Check forms (form): use court claim forms or get advice from the local court if litigation is necessary.
- Prepare legal steps (court): pay attention to jurisdiction and deadlines under the Code of Civil Procedure.
- Contact mediation services (contact): check whether mediation or conciliation can help before court.
FAQ
- Can the landlord open the deposit account alone?
- No, changes to the deposit agreement should be made in writing and both parties should agree to preserve your rights.
- Does the deposit have to bear interest?
- Yes, interest on the deposit generally belongs to the tenant unless otherwise agreed; document how it is handled.
- How long may the landlord withhold the deposit?
- The landlord may retain amounts for justified claims but must specify and document them within a reasonable period.
How-To
- Ask the landlord in writing to confirm the account type (form): request a clear agreement about the deposit account.
- Pay the deposit and get a receipt (deposit): make the agreed payment and keep the receipt.
- Create documentation at handover (evidence): take photos and protocols to avoid later disputes.
- Check legal help if conflict arises (court): contact the local court or advisory services if necessary.
