Security Deposit: Correct Interest Credit in Germany
Tenants in Germany often wonder how interest on a security deposit accrues and how it should be correctly credited when moving out. This text explains in plain language how interest on the deposit account is calculated, which deductions a landlord may lawfully claim and what rights you have as a tenant if statements are missing or the payout is delayed. It describes typical deadlines, the evidence you need and practical steps you can apply immediately to reclaim your deposit including interest. References to relevant legal bases and competent courts help you make informed decisions and act correctly in case of a dispute.[1]
Interest Calculation and the Deposit Account
The security deposit must be kept separate from the landlord’s assets in a deposit account (savings or trust account). The interest accrued therein generally belongs to the tenant and is part of the deposit. For legal classification, see the regulations in the German Civil Code (BGB) on tenancy relationships and the duties of the parties.[1] Keep account statements and interest statements as evidence.
What Landlords May Withhold
A landlord may only withhold interest to the extent he has legitimate claims against the tenant (e.g., unpaid utilities, compensation for damage). Blanket or undocumented deductions are not permissible; the tenant can request disclosure and supporting documents if in doubt.
Rules at Move-Out
At move-out the tenant should request a final interest statement and set a deadline for payment. A reasonable period of 14 to 30 days is common; more time may be appropriate for complex settlements. If the landlord does not pay, the tenant can assert claims, for example by filing for a payment order or suing at the competent local court.[2]
Documents to Prepare
- Collect and organize all deposit account statements chronologically as proof.
- Prepare a written request to the landlord with a deadline and send it by registered mail.
- Prepare a simple interest calculation (principal × rate × years/365) as a record.
- Document deadlines: move-out date, request date and expiry of the deadline.
- If necessary: initiate court proceedings or a payment order at the competent local court.
FAQ
- Who receives the interest on the security deposit?
- The interest accrued on the separate deposit account belongs to the tenant, not the landlord. Statements or account statements provide proof.[1]
- Can the landlord withhold interest?
- Yes, but only to cover concrete, evidenced claims against the tenant, such as unpaid utilities or repair costs due to damages. Blanket withholdings without proof are not permitted.
- How long may the landlord delay payment?
- There is no fixed nationwide deadline; transition periods for final settlement are common. If payment is unjustifiably delayed, the tenant can consider legal action such as a payment order or lawsuit at the local court.[2]
- Where do I go in case of disputes?
- Civil tenancy disputes are handled in the first instance by the competent local court; higher instances are the regional court and, for fundamental legal questions, the Federal Court of Justice.
How-To
- Check the deposit account immediately after moving out and secure all account statements as evidence.
- Request a written interest statement and payment of the deposit with a clear deadline (e.g., 14 days).
- Set a follow-up deadline and document all deadlines and any landlord responses.
- If the landlord does not respond or provides incomplete information, file for a payment order or bring an action at the local court.[2]
- Seek legal advice or official information if uncertain and keep all records safe.
Help and Support / Resources
- [1] BGB §§535–580a — gesetze-im-internet.de
- [2] ZPO (payment orders, claims) — gesetze-im-internet.de
- [3] Federal Court of Justice — bundesgerichtshof.de
- [4] Federal Ministry of Justice — bmj.de
