Security Deposit with Index Rent 2025 – Guide for Tenants

Tenants in Germany often face questions about the security deposit under index rent: must the deposit be handled differently, can the landlord adjust it, and what rights do you have in a dispute? This guide explains clearly how the security deposit should be managed and safely invested under index rent in 2025, which legal requirements to observe, and which forms or deadlines are relevant. It includes practical steps, examples for deposit account management and advice on when to contact the local court or seek legal assistance.^[1]

What is index rent and why does it affect the deposit?

Index rent ties the rent amount to a price index, usually the consumer price index. If the index rises, the rent increases automatically. The security deposit remains a separate guarantee amount, but index-based rent adjustments can make its relative burden more relevant for tenants. Check your rental agreement for clear clauses on the deposit, allowed maximum (usually up to three months cold rent under BGB) and deposit account rules.^[1]

Deposit account: how must the deposit be invested?

The landlord must invest the deposit separately from business assets. Common options are an insolvency-secure savings account or a trust account. Note that interest belongs to the tenant and that the account should be labeled as a deposit account. Request written evidence of account handling and interest payments.

Practical steps to check the deposit account

• Ask for proof that the deposit is invested separately and which account type is used.
• Request annual statements or account extracts for documentation of interest.
• Keep all correspondence and agreements about the deposit account in writing.

What to do when there are adjustments due to index rent or disputes?

If index rent leads to higher monthly burdens, check whether the landlord demands additional securities or a higher deposit. Such demands must be legally justified. In disputes over deposit use, accounting or repayment, first send a written objection and set deadlines. For persistent conflicts, the local Amtsgericht handles tenant claims; Federal Court of Justice rulings can be decisive.^[2]

Concrete steps if repayment is missing

1. Write to the landlord requesting repayment and set a clear 14-day deadline.
2. Collect evidence: bank statements, handover protocol, photos of damages.
3. If no agreement, consider filing a claim at the local Amtsgericht.

Forms and official steps

Important official forms or sample letters should be obtained only from government pages. A sample termination letter or claim form can help you meet deadlines and follow correct procedure. Use official templates when drafting a payment demand, filing a claim or requesting repayment.^[3]

FAQ

Can the landlord automatically increase the deposit with index rent?

No, automatic increases must be explicitly agreed in the contract and are subject to legal limits; otherwise subsequent demands must be reviewed.

Does the deposit have to earn interest?

Yes, interest belongs to the tenant; the landlord may not simply withhold interest.

Where can I turn in case of dispute?

First to the local Amtsgericht or an official advisory service; BGH rulings may be relevant for legal questions.

How-To

1. Review the rental agreement for clauses on index rent and deposit.
2. Request written proof of how the deposit is invested and any interest paid.
3. Set a written deadline for repayment and document all evidence.
4. If ignored, file a claim at the local Amtsgericht.

Help and Support

• Gesetze im Internet – BGB and tenancy law
• Federal Court of Justice (BGH) – case law
• Federal Ministry of Justice and Consumer Protection – forms & guidance

1. [1] Bürgerliches Gesetzbuch (BGB) – §§ 535–580a
2. [2] Bundesgerichtshof (BGH) – case law on tenancy
3. [3] Federal Ministry of Justice and Consumer Protection – official forms