Security Deposit with Index Rent 2025 - Tenants Germany

As a tenant in Germany, you should know how a security deposit behaves with an index rent in 2025. This text explains in plain language which rights you have as a tenant, how a deposit account can be managed and which specifics apply when rent is linked to inflation. You will read when the landlord can request an adjustment, which deadlines apply and how to act if there are uncertainties about repayment. The aim is to give you practical steps so you can manage your deposit securely and be prepared in case of disputes.

What is a security deposit with index rent?

With an index rent, the ongoing rent is linked to a price index; the deposit itself remains a security payment and generally cannot automatically increase with the index unless explicitly agreed. The basics of tenancy law are found in the Civil Code (BGB)^[1], which regulates landlord and tenant duties.

Types of deposit accounts

Common variants are three:

• Cash deposit: the landlord must manage the sum separately and usually pay interest.
• Escrow/savings account: more transparency, interest belongs to the tenant.
• Deposit insurance: instead of money, you provide a guarantee or insurance policy.

When can the landlord increase the deposit?

An increase of the deposit during the tenancy is only possible if contractually agreed or for special reasons (e.g., new agreements). An automatic adjustment solely because of index rent is not standard; concrete questions are decided by courts, especially local courts and higher instances.^[2]

Repayment of the deposit after the tenancy ends

The landlord may retain a reasonable period to check for claims (often up to six months) but must settle promptly and transparently. If there is no settlement, you should request repayment in writing and provide documentation.

Tips for disputes or delays

If the landlord refuses repayment or withholds amounts without explanation, document damages, request an itemized statement in writing and keep deadlines in mind. For persistent problems, the legal route via the local court may be necessary; higher courts like the regional court and the Federal Court of Justice influence tenancy law jurisprudence.^[3]

FAQ

1) Must the deposit automatically increase with index rent?

No. An automatic increase of the deposit due to index rent is only effective if explicitly agreed in the lease.

2) How long may the landlord keep the deposit?

The landlord has a reasonable verification period; often up to six months is cited, depending on required damage assessment.

3) Who decides disputes about the deposit?

Disputes are often heard first at the local court; appeals are possible at higher courts.

How-To

1. Carefully read the lease and check clauses about the deposit and index rent.
2. Request a written settlement of the deposit at move-out and set a repayment deadline.
3. Document the apartment condition with photos and a handover protocol to refute claims.
4. If refused, contact local advice services or file a claim at the local court.

Help and Support

• Gesetze im Internet – BGB and legal texts
• Federal Ministry of Justice – information about courts
• Federal Court of Justice (BGH) – tenancy law decisions

1. [1] Bürgerliches Gesetzbuch (BGB) – gesetze-im-internet.de
2. [2] Bundesministerium der Justiz – bmj.de
3. [3] Bundesgerichtshof – bundesgerichtshof.de