“Money that you have to deposit as security when renting an apartment or similar.”

The amount of the deposit to be paid depends on the corresponding net cold rent for the apartments and may not exceed three net cold rents. 
The tenant has the opportunity to divide the deposit in three instalments; the first instalment is due at the beginning of the lease, the other instalments in the following months.

It is the landlord’s task to invest this amount of money in an interest-bearing way. 
If there is no damage to the apartment or pending payments at the end of the tenancy, the landlord must repay the deposit, including interest, to the tenant.

Can I profit from my rental deposit?

In principle, you have the option to freely agree on the type of deposit together with your landlord. The most common types are:

• Cash deposit
• Deposit Savings Book 

• Guarantee
• Securities

What do I have to consider when repaying the rental deposit?

The deposit will not be refunded immediately upon the return of the apartment. Firstly, the landlord must check within a settlement period of up to six months whether additional payments from utility bills or arrears rents have to be taken into account, which can bewithheld from the deposit. You, as a tenant, must check whether the counterclaims made by the landlord to the deposit are justified. If you have any doubts, you have the opportunity to contact local tenant associations or seek advice from your lawyer.

What defects are covered by the rental deposit?

Before you move out of your old apartment, you should determine together with your landlord in what condition the apartment is to be handed over. For example, if the walls are to be painted white or boreholes are to be filled, please state this in writing in your rental agreement.

What happens if I don’t pay the deposit?

If you do not pay the deposit, your landlord has the right to terminate you extraordinarily without notice in accordance with Section 569 para. 2a BGB. It is not necessary to issue a prior warning.

Prerequisites for this are:• The payment of the rental deposit was expressly agreed as a service in the rental contract• The tenant must be in arrears with the payment of at least two monthly cold rents• The reason for termination is explicitly stated in the notice of termination

If the rental deposit is repaid, the cancellation may become invalid.

How is the deposit applied?

Your landlord must place the deposit you have paid in a secure manner in a rental deposit account or a rental deposit savings book.

You, as the tenant, are entitled to the interest profits from this investment. You will receive a tax certificate for the amount and this in turn can be credited to your income tax.

What are the differences between the rental deposit for private individuals and commercial tenants?

There is a difference in the amount of the rental deposit to be paid. A maximum of three times the net cold rent may be claimed from private individuals. This upper limit does not exist for commercial leases. The amount must be set separately for each new contract. Since the rental collateral in commercial rentals are significantly higher, cash deposits are rarely deposited. Instead, deposit collateral is used by means of a house bank or commercial rental deposit insurance.