Security Deposit Transfer to New Tenant in Germany
Many tenants face the question of how the security deposit can be transferred to a new tenant when moving out without disputes with the landlord and without financial disadvantage. In Germany, the BGB[1] and the courts regulate the rights of both parties; this text explains in practical terms which agreements are necessary, what form the assignment declaration should take, how the escrow deposit account (security deposit account) works, and which deadlines must be observed. I describe concrete steps, sample formulations and what to do if the landlord refuses or if there is an operating cost settlement. The goal is a transparent settlement that is legally secure for tenants and, if possible, avoids court proceedings and is quick.
What does assignment of the security deposit mean?
An assignment means that the previous tenant transfers his claims for repayment of the security deposit in whole or in part to the new tenant, or that the landlord transfers the deposit directly to the new tenant. In practice, a written agreement between the previous tenant, the new tenant and the landlord is often advisable to avoid later disputes.
Practical steps
- Draw up and sign a written agreement between previous tenant, new tenant and landlord.
- Create a handover protocol with photos and document defects.
- Determine whether the deposit will be paid directly to the new tenant or offset by the landlord.
- Put the assignment declaration in writing; observe sample formulations and wording tips.[3]
- Secure all receipts, proof of payment and the security deposit account details.
What to do if the landlord refuses?
If the landlord refuses the assignment, you should ask in writing for the reasons and, if necessary, propose alternative solutions, such as escrow deposit on a deposit account. If refusal continues, check legal options and the jurisdiction of the local court.[2]
FAQ
- Can the landlord generally refuse the assignment of the security deposit?
- The landlord can only refuse for factual reasons; blanket prohibitions are rarely effective.
- What form does an assignment declaration need?
- A written form with signatures of all parties is recommended; sample formulations help ensure legal clarity.
- How long does repayment of the deposit take after moving out?
- This depends on the settlement of operating costs and any defects found; typically a few weeks to several months.
How-To
- Inform landlord and new tenant early about the intended assignment.
- Draft a written assignment declaration and have it signed by all parties.
- Carry out a detailed handover protocol with photos and witnesses.
- Agree on the payment method (transfer to new tenant, offsetting by landlord or entry on deposit account).
- Keep all agreements, receipts and the signed assignment.
