Security Deposit & Guarantee: Tenant Guide Germany

Many tenants in Germany face the question of how a deposit guarantee compares to a traditional cash deposit. This text explains in plain language what a guarantee means, what rights you have as a tenant, and how to evaluate a security deposit account or guarantee. You will get clear steps to check contracts, tips for documentation during move-in and move-out, and practical advice on enforcing your rights if the refund of the deposit is delayed or refused. The guide is aimed at tenants without legal background and points to the most important official provisions and authorities in Germany.

What is a deposit guarantee?

A deposit guarantee is a contract where a bank or insurance company guarantees to the landlord for claims up to the agreed deposit amount. For tenants this can preserve liquidity because usually no large cash deposit is necessary. It is important to check whether the guarantee is unconditional, what term and costs (fees) apply, and whether the landlord actually accepts the guarantee.

Pros and cons for tenants

• Lower immediate burden: no need to provide a large cash deposit.
• Administrative costs: banks and providers often charge annual or processing fees.
• Risk of recourse claims by the guarantor if the landlord demands payments.

Practical steps: check a deposit guarantee

1. Read the contract: check term, cancellation conditions and guarantee amount.
2. List costs: record all fees and compare alternatives like a deposit account or installment payments.
3. Clarify with the landlord: ask in writing whether the guarantee is accepted and if there are objections.
4. Note deadlines: when can the guarantee be cancelled and how long does the guarantor remain liable after move-out?
5. Documentation: secure photos, handover protocols and correspondence to prove refund claims.

If there is a dispute about the refund, the local court (Amtsgericht) is often responsible for resolving tenancy claims; higher courts like the Landgericht or the Federal Court of Justice decide fundamental legal questions.^[3]

Forms and templates (official guidance)

For some steps there are official templates or recommendations. Useful documents include termination letters for ending the tenancy or formal requests for deposit refund. A commonly used name for such documents is "sample termination letter" from the Federal Ministry of Justice.^[2] For legal claims, procedures and deadlines are based on the provisions of the German Civil Code (BGB) and the Code of Civil Procedure (ZPO).^[1]

Frequently Asked Questions

Can the landlord demand a guarantee instead of cash deposit?

No, the landlord cannot unilaterally demand a specific form; in practice an agreement is often required. Clarify this in writing before signing the contract.

How long does the guarantee remain effective after moving out?

That depends on the contractual term of the guarantee; some guarantees end months after moving out, so check deadlines.

How do I enforce the deposit refund?

Request the refund in writing with a deadline and attach handover protocol or receipts; if refused, a claim at the local court may be necessary.

How-To

1. Check the guarantee contract first for duration, costs and cancellation terms.
2. Write to the landlord to clarify acceptance and conditions of the guarantee.
3. Collect evidence at move-in and move-out: photos, protocol, repair invoices.
4. Use a sample termination letter or refund request as a template and set a reasonable deadline.^[2]
5. If no agreement is reached, consider filing a claim at the competent local court and refer to the relevant BGB provisions.^[1]

Help and Support / Resources

• Bürgerliches Gesetzbuch (BGB) §535 ff. - Text of the law
• Sample termination letter - Federal Ministry of Justice
• Federal Court of Justice (BGH) - Court information

1. [1] Bürgerliches Gesetzbuch (BGB) §535 ff.
2. [2] Muster-Kündigungsschreiben - Bundesministerium der Justiz
3. [3] Bundesgerichtshof (BGH) - Gerichtsinformationen