The German rental deposit (Kaution) is regulated by law. Knowing the rules before you sign a lease protects you from paying more than legally required and gives you leverage when it comes time to get your deposit back.
Maximum Deposit Amount
German law caps the deposit at three months’ cold rent (Kaltmiete). If your monthly cold rent is €1,000, the maximum deposit is €3,000. Landlords who request more than three months’ cold rent are asking for something they legally cannot require. This cap is in §551 BGB (Bürgerliches Gesetzbuch).
Interest on the Deposit
The landlord must place the deposit in a separate, interest-bearing account (not their personal account). The deposit earns interest, and you’re entitled to that interest when the deposit is returned. Ask your landlord where the deposit is held. In practice, the interest amounts are small with low interest rates, but you’re entitled to it.
Alternatives to Cash Deposit
Some landlords accept a Kautionsbürgschaft (deposit guarantee) instead of cash — essentially a bank or insurance company guarantees the deposit amount. This lets you keep your cash and have the guarantee cover the deposit. Companies like Kautionskasse and SwissLife offer these products. Monthly fees are typically 3-5% of the deposit amount annually.
Getting Your Deposit Back
After moving out, landlords have up to 6 months to return the deposit (in practice, often 3 months). They can deduct for: damage beyond normal wear and tear, outstanding utility payments from the Betriebskostenabrechnung, and unpaid rent.
They cannot deduct for: normal wear and tear (regular fading of paint, minor floor scuffs from normal use, small nail holes for pictures), issues that existed before you moved in (document these in the Übergabeprotokoll at move-in), and repairs they are legally obligated to make regardless of your use.
The Übergabeprotokoll Is Essential
The handover protocol (Übergabeprotokoll) — signed at move-in and move-out — documents the apartment’s condition. Photograph every room at move-in, before you bring any furniture in. Note every scratch, stain, and imperfection in writing and have the landlord sign it. Without this documentation, disputes about pre-existing damage are your word against theirs.
If Your Landlord Refuses to Return the Deposit
First, send a formal written reminder (Zahlungserinnerung) by registered mail (Einschreiben) demanding return within a specific deadline (two weeks is standard). If they don’t respond, contact the Mieterverein (tenant association) — members get legal consultation included. Small claims up to €5,000 can be filed at the local Amtsgericht (district court) with straightforward paperwork. German tenancy law strongly protects tenants in deposit disputes.
