Tenants: Assigning Deposit to New Tenant in Germany

As a tenant in Germany, you face several pitfalls when assigning a security deposit to a new tenant. This article explains in plain terms how to document an assignment correctly, which receipts are important, and how to minimise liability risks. Practical tips show which agreements make sense, when landlord consent is required and the role of bank statements or release declarations. The aim is to protect incoming tenants, outgoing tenants and landlords so that later disputes are often avoidable.

What does assignment of the security deposit mean?

In an assignment the previous tenant states to the new tenant or landlord that the new tenant takes over the deposit or that claims are transferred to third parties. The rules of the BGB are important here, in particular the tenancy sections §§ 535–580a.^[1]

Typical mistakes in assignment to a new tenant

• No written agreement between outgoing tenant, incoming tenant and landlord.
• Missing documentation of payment, bank statement or receipts as proof.
• No clear payment flow or no landlord release agreed.
• Accepting verbal arrangements without clarifying liability issues.
• Underestimating deadlines and court steps, initiating legal action too late.^[2]

Practical steps before assignment

Preparation

• Draft a written assignment agreement and have all parties sign it.
• Collect bank statements, receipts and screenshots of transfers as evidence.
• Arrange payment flow so the deposit is transferred to a secured account or obtain a written landlord release.

Written agreement

The agreement should include names, amounts, bank details, date and a release clause. Do not skip signatures from all involved parties.

FAQ

Can a tenant simply transfer the deposit to a new tenant?

In principle an assignment is possible, but it should be in writing with clear liability rules and ideally a landlord release.^[1]

What if the new tenant does not pay the deposit?

Document all payment attempts and consider a payment order or court action at the competent local court.^[2]

What role does BGH case law play?

The Federal Court has clarified in individual cases that formal documentation and clear payment processes are central; missing documents can complicate resolution.^[3]

How-To

1. Draft a written assignment agreement with date, amount and signatures from all parties.
2. Collect bank statements, receipts and screenshots of transfers as evidence.
3. Obtain a landlord release in writing or pay the deposit into a separate escrow/deposit account.
4. Prepare an inventory handover protocol at move-out and have the new tenant sign it.
5. If necessary, submit evidence to the local court or use payment order procedures to enforce claims.^[2]

Help and Support / Resources

• Bürgerliches Gesetzbuch (BGB) §§ 535–580a
• Information on courts and procedures (Justiz)
• Federal Court (BGH) publications

1. [1] Bürgerliches Gesetzbuch (BGB) §§ 535–580a
2. [2] Justiz: information on local courts and procedures
3. [3] Federal Court (BGH) publications