Rental Deposit (Kaution) in Germany: How It Works

How much is the deposit?

By law, the deposit for a regular apartment is usually:

• Up to three months’ basic rent (Kaltmiete)

Landlords may choose a lower deposit, but not higher in standard residential contracts.

How and when you pay

Common options:

• One payment before move-in

• Three monthly installments (if agreed)

Always pay via bank transfer, not cash, so you have proof.

How the landlord must hold your deposit

In Germany, landlords must:

• Keep the deposit separate from their own money

• Usually place it in a special bank account

Ask for written confirmation of where your deposit is held.

When and how you get it back

After you move out:

• The landlord checks the flat for damage

• Final bills (heating, water, etc.) may take time to settle

• The landlord can keep money for:

  • Unpaid rent

  • Serious damage beyond normal wear and tear

  • Outstanding service charges (if they’re clearly documented)

It’s common for landlords to wait several months, especially until annual Nebenkosten statements are ready. If they keep the full deposit without clear justification, you can ask for an explanation in writing.

Protecting your deposit

• Use a detailed handover protocol at move-in

• Report issues in writing during the tenancy

• Document the condition of the flat when you leave (photos, witnesses)

• Return all keys and get a signed move-out protocol if possible

If there are serious disputes, a tenants’ association or lawyer can help you assess whether deductions are reasonable.