Security Deposit (Mietkaution) — Amount, Deposit Account and Refund

What is a Security Deposit?

A security deposit (Mietkaution) is a financial security provided by the tenant to the landlord upon move-in. It serves as protection for:

• Unpaid rent
• Damage to the apartment
• Outstanding additional costs (utilities)

Legal Regulations (§ 551 BGB)

Maximum Amount

The security deposit may not exceed 3 months' net rent — excluding utilities.

Example: Net rent €700 → maximum deposit: €2,100

Installment Payments

You have the right to pay the deposit in 3 equal monthly installments:
- 1st installment: at the start of the lease
- 2nd installment: with the second month's rent
- 3rd installment: with the third month's rent

The landlord cannot refuse installment payments — this is legally guaranteed.

Deposit Account

The landlord must place the deposit separately from their own assets:

• Savings account or escrow account in the tenant's name
• Interest belongs to the tenant
• The landlord cannot use the deposit for personal purposes

Tip: Ask the landlord for proof of the deposit account.

Alternatives to Cash Deposit

Deposit Refund

When is the deposit refunded?

• The landlord has a reasonable inspection period — typically 3–6 months after move-out
• For the final utility settlement, the landlord may retain part for up to 12 months
• The landlord cannot withhold the deposit without cause

Deductions — What is Permitted?

• Unpaid rent — outstanding rental payments
• Damage — beyond normal wear and tear (e.g., holes in doors, burn marks)
• Outstanding utilities — estimated additional charges

Not Permitted:

• Deduction for normal wear and tear (yellowed walls, worn carpet)
• Deduction for cosmetic repairs if the clause in the lease is invalid

Tips

• Create a move-in and move-out inspection report (with photos!)
• Request a receipt for deposit payment — written proof of payment
• After move-out: request refund in writing (with deadline)

As of: March 2026. All information without guarantee.