Security Deposit for Index Rent: Tenants in Germany

This article explains for tenants in Germany, in plain language, how security deposits work under index rent and what rights and duties you have. You will learn when landlords may adjust the deposit to a higher indexed rent, how a deposit account must be handled correctly, and which deadlines apply when reclaiming the deposit. I also show practical steps: which evidence to collect, how to formally request repayment and when filing a claim at the local court may be necessary. The aim is that you as a tenant can check your claims safely, meet deadlines and be prepared in a dispute. The language stays simple and action-oriented so you know immediately what to do.

Deposit amount and legal basis

The statutory upper limit for a security deposit is generally three months' cold rent according to §551 BGB. For index rent: the deposit must not exceed the agreed amount; if the rent increases due to index adjustment, a landlord may under certain conditions request additional payments if the deposit was originally agreed as a multiple of the cold rent and that ratio is to be maintained.^[1]

When can the landlord request more?

Whether and how much can be requested depends on the wording of the lease and the basis of calculation. Many contracts state the deposit in "cold rents"; if the cold rent rises due to index adjustment, this can be grounds for a request for more. At the same time, the total deposit may not exceed the legal limit. Check your contract in writing and ask the landlord for clarification and calculation details if unclear.

• Set a deadline of 14–30 days for a written breakdown of the additional claim.
• Request evidence showing how the new cold rent was calculated and how the deposit ratio is derived.
• Document all correspondence and payments, including bank statements and handover records.

Deposit account: placement and interest

The deposit must be kept separate from the landlord's assets; it is common practice to use an insolvency-proof trust or tenant deposit account in the tenant's name that earns interest. The interest belongs to the tenant and must be considered when refunding. Request account statements or a written confirmation of the placement and interest if the landlord does not provide them voluntarily.

Reclaiming the deposit after moving out

After termination of the tenancy, the landlord may be allowed a reasonable period to settle utility costs or assert damage claims. Common settlement periods are up to six months; in individual cases up to twelve months. Request the deposit in writing and set a clear payment deadline.

• Send a formal repayment request with a deadline (e.g. 14 days) and request the utility bill settlement simultaneously.
• Record the move-out date and the request date to prove deadlines.
• If the landlord fails to pay, the local court (Amtsgericht) is the usual venue for claiming repayment.^[3]

If the landlord demands additional money

If the landlord demands extra deposit, first check whether the legal maximum has already been reached. If the claim is disputed, request a detailed calculation and check compatibility with §551 BGB. If unsure, document a rejection or a payment under protest so you do not forfeit rights later. In case of court proceedings, procedural rules of the ZPO apply.^[2]

FAQ

Can a landlord increase the deposit under index rent?

Yes, under certain conditions he can request additional payments if the deposit is linked to the cold rent, but the total demand may not exceed three months' cold rent.

How long does the landlord have to return the deposit?

Common periods range from a few weeks up to six months for utility settlements; in individual cases up to twelve months may apply.

How must a deposit account be managed?

The deposit should be kept separate from the landlord's assets; the interest earned belongs to the tenant.

How-To

1. Check the deposit amount stated in the lease and compare it with your current cold rent.
2. Gather evidence: bank statements, handover protocol, utility bills and the lease.
3. Request the deposit in writing and set a clear payment deadline (e.g. 14 days).
4. If the landlord does not pay, consider filing a claim at the local court and prepare your documentation.

Help and Support / Resources

• BGB §551 – Regulation on the security deposit
• Zivilprozessordnung (ZPO) – Procedural rules
• Federal Court of Justice (BGH) – Case law

1. [1] Gesetze im Internet: BGB §551 – Mietkaution
2. [2] Gesetze im Internet: Zivilprozessordnung (ZPO)
3. [3] Bundesgerichtshof (BGH) – Information on case law