Store Security Deposit at Move-Out - Tenants Germany
Many tenants face questions at move-out about how the security deposit is stored and which deductions the landlord may lawfully make. In Germany the Civil Code (BGB) governs that a security deposit is usually up to three months' rent and that any interest belongs to the tenant. This guide explains in clear language how you as a tenant can protect your deposit balance, properly set up a deposit account and check landlord claims. You will learn about deadlines, common billing errors and practical steps to limit unlawful withholdings and when court action at the local court may be appropriate.
Understanding Deposit Withholding
The legal basis for the security deposit is § 551 BGB: landlords may demand a deposit, must keep it separate from their assets and must inform tenants about accrued interest.[1] Disputes over withholdings are often decided by the local court, and important cases have been decided by the Federal Court of Justice (BGH) regarding allowable amounts and discounting of claims.[2]
In most cases the landlord must assert their claims within a reasonable period.
When can a landlord withhold?
- Only for provable claims: only damages, outstanding utility charges or rent arrears may be deducted.
- Duty to provide evidence: a deduction must be supported by an understandable settlement.
- No flat-rate deductions without proof: mere assumptions are not enough for withholding.
Keep deposit receipts, photos and move-in/out protocols for at least two years.
How to set up a deposit account correctly
As a tenant you can ask that the deposit be kept separately; many contracts refer to a trust or savings account. Pay attention to clear account naming and the interest rate shown on statements. When opening the account, keep account records and send the bank details in writing to the landlord. For questions about lawful handling check § 551 BGB and consult the local court.[1]
Small interest amounts add up over years and belong to the tenant.
Frequently Asked Questions
- How long can the landlord withhold the deposit?
- There is no general statutory deadline; the landlord must assert claims within a reasonable period and justify them. Practice often sees periods around six months, but each case is individual.
- What evidence do I need against unjustified deductions?
- Photos of the move-out condition, the handover protocol, bank statements and receipts for repairs are the most important evidence.
- Where can I turn if the landlord does not pay?
- First set a written deadline and request an accounting; then the local court is competent and a payment order or lawsuit are options.
How-To
- Gather documents: compile the handover protocol, photos, bank statements and all invoices.
- Set a deadline: request repayment from the landlord in writing within a reasonable deadline (e.g. 14–30 days).
- Write formally: send a clear letter with justification and evidence to the landlord.
- Court steps: if refused, consider a payment order or lawsuit at the local court.[3]
Key Takeaways
- The deposit may only be used for proven claims.
- Good documentation improves your chances in disputes.
- Set a clear deadline for the landlord to pay.
