Security Deposit for Index Rent: Tenant Checklist Germany

What applies to deposit and index rent?

As a tenant in Germany you should know that the security deposit for an index rent must be kept separate from the landlord's assets and that legally binding rules apply ^[1]. With index rent pay special attention to documentation of interest and the remaining balance as well as deadlines for increases and moving out.

Legal basis

The most important provisions on the tenancy relationship are found in the BGB, in particular regarding landlord and tenant duties, deposit rules and repayment ^[1]. In court proceedings such as eviction cases the rules of the ZPO apply ^[2], and local Amtsgerichte are responsible for most tenancy disputes ^[3].

Types of deposit accounts and what tenants should watch

• Escrow or rental deposit account (deposit) kept separate from the landlord's assets.
• Check interest rules: who owns accrued interest and how it is reported (deposit interest)?
• Record contractual agreements in writing and keep account statements as evidence (form).
• At handover take photos and a protocol to later review any deductions (evidence).

Keep the deposit safe: practical steps

As a tenant with an index rent: request written details about the deposit account from the landlord, document opening receipts and ask for annual account statements for traceability.

1. Request written confirmation of the deposit account and custody method from the landlord.
2. Open or verify the deposit account together with the landlord and secure account statements (deposit).
3. Document defects at move-in with photos and a handover protocol as evidence.
4. Observe deadlines for asserting deductions after move-out and ask for a detailed settlement.

FAQ

Who holds the deposit for index rent?

The deposit must be held separate from the landlord's assets, typically in an escrow or rental savings account; exact arrangements should be in the tenancy agreement ^[1].

Is the deposit entitled to interest?

Yes, interest generally belongs to the tenant if earned; request annual account statements and check how interest is reported.

Where can I turn if the landlord does not pay out?

Disputes are handled by the Amtsgerichte; inform yourself about legal steps and evidence preservation before filing a claim ^[3].

How-To

1. Step 1: Ask the landlord in writing for details of the deposit account and custody method.
2. Step 2: Open a joint rental savings account or confirm the existing account in writing.
3. Step 3: Collect account statements, handover protocols and photos as evidence.
4. Step 4: After move-out request a detailed statement and respond within deadlines to any disputes.

Help and Support / Resources

• Bürgerliches Gesetzbuch (BGB) – Gesetze im Internet
• Information on courts and responsibilities – Justiz.de
• Federal Ministry of Justice and Consumer Protection – Service and templates

1. [1] Bürgerliches Gesetzbuch (BGB) §§ 535–580a — gesetze-im-internet.de
2. [2] Zivilprozessordnung (ZPO) — gesetze-im-internet.de
3. [3] Jurisdiction of Amtsgerichte and procedural information — justiz.de
4. [4] Template letters and service offers — Federal Ministry of Justice and Consumer Protection