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Legal disclaimer: This article is for informational purposes only. German tenancy law and BGH case law evolve. Nothing here constitutes legal advice. For guidance on a specific deposit dispute, consult a Mieterverein or a qualified Rechtsanwalt.
Renting a flat in Germany almost always means paying a security deposit. Known as the Kaution or Mietsicherheit, it exists to protect landlords against unpaid rent, property damage, and outstanding utility charges at the end of a tenancy. For tenants arriving from abroad, it is often a significant upfront cost — and understanding the rules from the very start makes the eventual return far smoother.
German law, specifically §551 of the Bürgerliches Gesetzbuch (BGB), imposes firm limits on how much can be charged, how the deposit must be held, and what rights tenants have throughout the tenancy. These protections are mandatory: no lease clause can override them. A landlord who demands more than the legal maximum, or who pockets the interest earned on your deposit, is acting unlawfully.
This guide covers everything from the moment you sign a lease to the moment you want your money back. All legal references reflect the law as of July 2026, including BGH rulings through to May 2025.
Key takeaways
- The deposit (Kaution) is capped at three months' net cold rent under §551 BGB. Any lease clause demanding more is partially void.
- You have a statutory right to pay in three equal monthly instalments. No landlord can legally override this.
- The landlord must hold your deposit in a separate, interest-bearing Treuhandkonto (trust account). The interest belongs to you.
- Deductions for normal wear and tear are not permitted. The landlord bears the burden of proof for every deduction claimed.
- If the deposit is not returned within six months without explanation, send a written demand by registered post and contact a Mieterverein.
Quick answer
In Germany, the rental deposit (Kaution) is capped at three months' net cold rent under §551 BGB. You can pay it in three monthly instalments. The landlord must return it within three to six months of the tenancy ending, minus any documented legitimate deductions for unpaid rent or genuine property damage beyond normal wear and tear.
What is the Kaution?
The Kaution is a security deposit, paid by the tenant to the landlord at the start of a tenancy. Its purpose is straightforward: it gives the landlord financial protection against losses that might arise during or at the end of the rental period. Unpaid rent, damage to the flat beyond ordinary wear, or an outstanding balance on the utility bill — all of these can, in principle, be offset against the deposit.
What distinguishes the German system from many others is how tightly it is regulated. §551 BGB is a consumer-protective provision, and its rules are mandatory. Landlords cannot draft their way around them in a lease, and tenants cannot waive them — even voluntarily. This means the legal framework is the same whether you are renting a furnished studio for three months or a family flat for ten years.
For international tenants, one early misconception is common: the deposit in Germany is calculated on the net cold rent (Nettokaltmiete), not on the all-inclusive rent (Warmmiete). If your lease states a cold rent of 900 EUR and a utility advance of 250 EUR, only the 900 EUR figure counts for deposit purposes. The distinction matters — and the rest of this guide explains exactly how.
How much can the landlord charge?
§551 Abs. 1 BGB sets an absolute upper limit: the deposit may not exceed three months' net cold rent (drei Monatsnettokaltmieten). The net cold rent is the base monthly rent stripped of all utility and service charges. It does not include advance payments for heating, water, building cleaning, lift maintenance, or any other items listed in the Nebenkostenvorauszahlung column of the lease.
| Rent component | Included in deposit calculation? |
|---|---|
| Nettokaltmiete (base rent) | Yes — this is the figure used |
| Nebenkosten (utilities and service charges) | No — excluded entirely |
| Warmmiete (all-inclusive rent) | No — only the cold rent element counts |
The calculation is simple. If your lease states a Nettokaltmiete of 900 EUR per month, the maximum lawful deposit is 2,700 EUR. If the deposit clause in your contract specifies a higher figure, that clause is partially void by operation of §551 Abs. 4 BGB: any excess is unenforceable. The landlord cannot refuse to hand over the keys because you decline to pay above the legal cap.
Warning: If your lease contains a deposit clause exceeding three months' net cold rent, you are not legally bound by the excess. Do not pay more than the statutory maximum. If you have already paid more, you are entitled to reclaim the overpayment.
What this means in practice across German cities
The §551 BGB cap is calculated on cold rent (Kaltmiete), which is always lower than the all-inclusive rent (Warmmiete) you see advertised for furnished apartments. The figures below are from Wunderflats' own booking data for standard furnished mid-term rentals (June 2025 to May 2026). These are all-inclusive Warmmiete prices and are shown here to give you a sense of the furnished rental market in each city. Your actual cold rent — and therefore your deposit cap — will be lower once utilities and service charges are separated out.
| City | Avg furnished rent (Warmmiete) | Median furnished rent (Warmmiete) | Max deposit if 3× avg (indicative only) |
|---|---|---|---|
| Berlin | 1,591 EUR | 1,490 EUR | 4,775 EUR |
| Hamburg | 1,622 EUR | 1,500 EUR | 4,850 EUR |
| München | 1,828 EUR | 1,612 EUR | 5,500 EUR |
| Köln | 1,489 EUR | 1,400 EUR | 4,450 EUR |
| Frankfurt am Main | 1,477 EUR | 1,300 EUR | 4,450 EUR |
| Düsseldorf | 1,335 EUR | 1,200 EUR | 4,000 EUR |
| Stuttgart | 1,313 EUR | 1,200 EUR | 3,950 EUR |
| Leipzig | 1,168 EUR | 1,100 EUR | 3,500 EUR |
| Bremen | 1,255 EUR | 1,200 EUR | 3,750 EUR |
| Nürnberg | 1,305 EUR | 1,190 EUR | 3,900 EUR |
Source: Wunderflats internal data (BigQuery), Jun 2025–May 2026. Standard furnished mid-term bookings only. Prices shown are all-inclusive Warmmiete. The "Max deposit" column applies the 3× multiplier to the average Warmmiete as an indicative reference only: actual deposits must be calculated from the cold rent stated in the individual lease, which will be lower.
München stands out clearly: average furnished rents there are 15% above Berlin and nearly 40% above Leipzig. Even so, the deposit cap is always applied to the cold rent, not to these all-inclusive figures. When you receive a lease, look for the Nettokaltmiete line, multiply it by three, and that is the most you are legally required to pay.
§551 BGB: key requirements checklist
These are the core compliance points that every landlord must meet and every tenant should verify at the start of a tenancy.
- Maximum three months' net cold rent: the deposit cannot exceed three Monatsnettokaltmieten under §551 Abs. 1 BGB. Any contractual excess is void.
- Instalment payment right: the tenant may pay in three equal monthly instalments. The first is due at the start of the tenancy; the second and third follow with the next two rent payments. This right cannot be waived by contract.
- Allowed deposit forms: the standard Barkaution (cash transfer) is most common. Bank guarantees and pledged savings accounts (Verpfändung) are also permitted. The landlord cannot insist on a form that places an unreasonable burden on the tenant.
- Separate Treuhandkonto required: §551 Abs. 3 BGB requires the landlord to hold the deposit in a separate, interest-bearing trust account, entirely distinct from the landlord's own funds. Mixing is prohibited.
- Interest belongs to the tenant: all interest accrued during the tenancy must be returned to the tenant along with the deposit principal.
- Excess agreements void: §551 Abs. 4 BGB makes it clear that the void portion is only the excess. The rest of the deposit clause remains valid up to the legal maximum.
- Insolvency protection: because the deposit must be held separately, it is shielded from the landlord's creditors if the landlord becomes insolvent. This protection depends on correct separate holding.
Requirements can evolve with new legislation and court rulings. When in doubt, verify current rules with a Mieterverein or a qualified Rechtsanwalt.
How to pay the deposit
Paying three months' rent in a single lump sum can be a real burden when you are also covering the first month's rent, moving costs, and possibly an agency fee. German law addresses this directly. Under §551 Abs. 1 BGB, every tenant has the statutory right to pay the deposit in three equal monthly instalments. This right exists regardless of what the lease says. A clause requiring full upfront payment is unenforceable.
The structure is clear. The first instalment is due at the beginning of the tenancy: on or before the date the lease starts. The second instalment becomes due together with the second month's rent. The third falls together with the third month's rent. If you move in on 1 August, you pay one-third in August, one-third in September, and the final third in October.
Tip: Notify the landlord in writing before move-in that you intend to pay in three instalments. Make each bank transfer with a clear reference such as "Mietkaution Teilzahlung 1/3 – [flat address] – [your name]". This creates an unambiguous paper trail.
The BGH confirmed in May 2025 (VIII ZR 256/23) that a landlord can terminate the tenancy for serious and persistent default on a Barkaution obligation. This ruling applies where the arrears are substantial — it is not triggered by a single late payment. Tenants who pay each instalment on time, in accordance with the statutory schedule, face no risk of termination on this basis.
How the landlord must hold the deposit
The landlord does not have free use of your deposit. §551 Abs. 3 BGB imposes clear obligations about how the money must be held. Two requirements apply simultaneously: the deposit must be held separately from the landlord's own assets, and it must be invested in an interest-bearing account.
In practice, this means a dedicated Mietkautionskonto (deposit savings account), held in trust for the tenant at a bank. The account must offer the interest rate applicable to savings deposits with a three-month notice period (Spareinlagen mit dreimonatiger Kündigungsfrist). The landlord cannot simply hold the money in a current account or mix it with personal funds.
| Landlord obligation | Legal basis | What it means in practice |
|---|---|---|
| Separate Treuhandkonto | §551 Abs. 3 BGB | Held in trust; protected if landlord becomes insolvent |
| Interest-bearing investment | §551 Abs. 3 BGB | Rate for savings with 3-month notice period |
| Interest belongs to tenant | §551 Abs. 3 sentence 2 BGB | All accrued interest is returned with the deposit |
The insolvency protection is particularly valuable for longer tenancies. Because the deposit is legally recognised as trust property and held separately, the landlord's creditors cannot seize it if the landlord enters insolvency proceedings. A landlord who fails to hold the deposit in a qualifying separate account leaves themselves exposed to liability. The tenant can request written proof of correct holding at any time, and courts have held that a tenant can exercise a Zurückbehaltungsrecht (right of retention) on future rent — up to the deposit amount — once a reasonable deadline for providing that proof passes without response.
"Because the deposit is legally recognised as trust property and held separately, the landlord's creditors cannot seize it if the landlord enters insolvency proceedings."
What can be deducted from the deposit?
A landlord may make deductions from the deposit to cover financial claims arising from the tenancy. Three categories are lawful. The landlord bears the full burden of proof for every deduction and must provide documentary evidence. Vague assertions are not sufficient.
| Deduction type | Conditions | Not permitted if |
|---|---|---|
| Unpaid rent | Documented rent arrears at end of tenancy | Rent disputes are unresolved and contested |
| Genuine property damage | Damage beyond normal wear; landlord must prove it was caused during the tenancy | Damage is pre-existing (documented in Übergabeprotokoll) or constitutes normal wear |
| Utility bill balance (Nebenkostennachforderung) | Outstanding balance from issued Nebenkostenabrechnung | Billing period has not yet ended; landlord fails to issue the statement within legal deadline |
| Renovation costs | Only where the renovation clause in the lease is legally valid and the tenant failed to comply | The clause is void under BGH case law (e.g. rigid interval clauses, Quotenabgeltungsklauseln) |
For property damage, the principle of neu für alt (new for old) applies when items must be replaced rather than repaired. If a tenant damages a five-year-old carpet with an estimated lifespan of ten years, the landlord can claim for the remaining useful value — approximately 50% of replacement cost — not the full price of a brand new one. Invoices from contractors must be provided. Estimates alone are not sufficient.
A BGH ruling of 10 July 2024 (VIII ZR 184/23) introduced an important nuance: landlords may offset damage-related claims against the deposit even after the standard six-month limitation period for those claims has passed under §548 BGB. This means a landlord can raise a time-barred (verjährte) damage claim in the context of a deposit offset, even if they could no longer pursue it as a standalone lawsuit. The Deutscher Mieterbund has criticised this ruling. Tenants should be aware of it when assessing whether delayed deduction claims are lawful.
What cannot be deducted
German tenancy law has developed clear categories of items for which deductions are not permitted. Understanding these is just as important as knowing what landlords can lawfully claim.
Normal wear and tear (vertragsgemäße Abnutzung) is the starting point. Every flat shows signs of ordinary residential use over time: slight marks on walls, minor floor scratches, faded paintwork, worn grouting. These are the expected consequences of someone living in a home, and the landlord accepts them as part of the tenancy. The practical test is whether the deterioration would have occurred in any normal tenancy. If yes, the tenant is not liable.
Pre-existing damage documented in the move-in Übergabeprotokoll is likewise excluded. If a crack in a wall tile, a stain on the bathroom floor, or a door that does not close properly was recorded at check-in, the landlord cannot charge for it at check-out. This is the core reason why completing and signing a thorough handover protocol at the start of a tenancy matters so much in practice.
Warning: Never move into a flat without completing a written Übergabeprotokoll. Walk through every room, note every defect however small, and photograph everything. Both parties should sign and keep a copy. Without this document, you may later struggle to prove that damage existed before your tenancy began.
Cosmetic repairs under void lease clauses cannot be deducted. Many standard lease templates contain Schönheitsreparaturklauseln (cosmetic repair clauses) that are legally invalid under long-established BGH case law. Clauses specifying rigid renovation intervals — such as repainting every three years regardless of actual condition — are void (BGH VIII ZR 361/03 and subsequent rulings). Quotenabgeltungsklauseln (proportional cost-sharing formulas for partial tenancies) were declared void by the BGH in 2015 (VIII ZR 185/14). If the clause in your lease falls into one of these void categories, the obligation to renovate never arose legally, and the landlord has no basis to deduct renovation costs.
Repairs covered by the Kleinreparaturklausel cannot become a deposit deduction if the tenant was never liable for them, or if the clause exceeds the legal limits: typically no more than 100 to 120 EUR per single repair, with an annual cap of around 6 to 8% of the annual cold rent.
The deposit process: 4 stages
From the moment you pay the deposit to the moment you get it back, the process moves through four distinct stages. Knowing what each stage requires keeps you in control.
Stage 3 is where most disputes begin. The condition of the flat at move-out, documented in the Übergabeprotokoll, determines what the landlord can lawfully deduct. Completing the handover inspection jointly, signing the protocol, and keeping photographs is the single most protective action a tenant can take.
Deposit return timeline
One of the most common frustrations for outgoing tenants is not knowing when the deposit should arrive. §551 BGB sets no fixed deadline. The law grants the landlord a "reasonable" period (angemessene Prüfungsfrist) to examine their claims — and it is BGH case law, not statute, that fills in the practical timeframe.
Courts consistently accept three to six months as the outer limit of this review period in ordinary cases. Three months is generally considered sufficient for a straightforward tenancy with no complications. The full six months is reserved for cases where legitimate claims require investigation — obtaining contractor quotes, for example, or waiting for documentation of a damage claim that is difficult to quantify quickly.
The Nebenkostenabrechnungsvorbehalt
The one situation where the landlord may legitimately withhold part of the deposit beyond six months is a pending Nebenkostenabrechnung (utility bill statement). Under §556 Abs. 3 BGB, the landlord has up to twelve months after the end of the billing period to issue the utility statement. If your tenancy ends in the middle of a billing year, the landlord may keep a proportionate portion of the deposit in reserve until the bill is issued and settled.
This does not mean the entire deposit can be withheld. Only the portion that reasonably reflects an expected utility balance may be retained. The rest should be returned within the normal timeframe. Once the bill is issued, the reserved portion must be settled promptly: the Nebenkostenvorbehalt cannot serve as a pretext to delay the whole settlement indefinitely.
Info: Courts have held that a landlord who uses the utility billing period as a pretext to delay a clearly unrelated portion of the deposit return may be acting in bad faith. If the utility bill has been issued, settled, and the landlord is still withholding the remainder without explanation, that withholding is no longer justified.
The §548 BGB limitation period
Under §548 BGB, the landlord's damage claims against the tenant become time-barred after six months from the return of the flat (Rückgabe der Mietsache). This is a short limitation period compared to standard German civil law. It was designed to give both parties certainty relatively quickly after a tenancy ends. Note, however, the BGH ruling of July 2024 (VIII ZR 184/23): a landlord can still offset those time-barred damage claims against the deposit in the context of a settlement, even though they could not sue on them independently. The practical effect is that time-barred damage claims do not automatically disappear from deposit disputes.
What to do if the deposit does not arrive on time
If three months have passed with no word, send a polite written reminder. If six months have passed and you have received neither the deposit nor a written breakdown of deductions, the landlord is in default. Proceed with the formal steps in the section below.
Getting the deposit back
Most deposit disputes resolve without legal proceedings, but only when the tenant acts decisively and in writing. The following steps give you the best chance of a quick resolution without escalating to court.
Step 1: Written demand (Mahnschreiben)
Draft a clear letter stating the amount you paid, the date the tenancy ended, and a fourteen-day deadline for the landlord to return the deposit or provide a written itemised breakdown of deductions. State that you will pursue legal action if the deadline is not met.
Tip: Send the Mahnschreiben by Einschreiben mit Rückschein (registered post with return receipt). Keep the certificate of posting and the return receipt. These prove both that you sent the letter and that the landlord received it — critical evidence if you later go to court.
Step 2: Mieterverein
If the landlord does not respond within the deadline, contact a local Mieterverein (tenants' association). Membership typically costs 80 to 120 EUR per year and includes access to qualified lawyers specialising in tenancy law. The Mieterverein can review the landlord's deductions, advise whether they are lawful, and draft further correspondence on your behalf. In many cases, a formally worded letter from the association prompts the landlord to settle without further escalation.
Step 3: Mahnbescheid (payment order)
If the landlord still does not comply, file a Mahnbescheid at the Amtsgericht (local court) in the landlord's district. The online portal mahngerichte.de allows this without a lawyer. The fee is modest, calculated as a percentage of the claim. If the landlord does not file an objection within two weeks, the Mahnbescheid becomes a Vollstreckungsbescheid (enforcement order) usable to compel payment.
Step 4: Court proceedings
If the landlord objects to the Mahnbescheid, the matter moves to a standard civil hearing. For deposit amounts up to 5,000 EUR, the Amtsgericht has jurisdiction and proceedings are relatively accessible. Tenants can represent themselves, though a Mieterverein or solicitor is helpful. The three-year limitation period for monetary claims under §195 BGB applies: do not delay starting the formal process beyond three years from the end of the tenancy.
- Document everything: keep all correspondence, bank transfer receipts, the lease, the Übergabeprotokoll, and all photographs.
- Request itemised deductions: the landlord must state in writing what they are keeping and why. A blanket refusal without explanation is not lawful.
- Check the renovation clause: before accepting any deduction for cosmetic work, verify with a Mieterverein whether the clause in your lease is actually enforceable.
- Act within the limitation period: deposit claims expire after three years under §195 BGB.
FAQs about the German apartment deposit
How much deposit can a landlord charge in Germany?
Under §551 Abs. 1 BGB, a landlord may charge a maximum of three months' net cold rent (Nettokaltmiete) as a security deposit. The net cold rent is the base rent only: it excludes all additional costs (Nebenkosten) such as heating, water, building insurance, and waste collection. These additional costs are listed separately in the lease as a Nebenkostenvorauszahlung, and they play no part in the deposit calculation.
Any deposit clause in a rental contract that exceeds this three-month limit is partially void by operation of law: the landlord may only retain up to the legal maximum, regardless of what the contract says. If you have already paid more than three months' net cold rent as a deposit, you are entitled to reclaim the excess amount.
The calculation is straightforward: if your monthly net cold rent is 900 EUR, the maximum lawful deposit is 2,700 EUR. If your lease specifies 3,600 EUR or four months, the excess 900 EUR is unlawful and you are not obliged to pay it. If you already paid it, write to the landlord requesting repayment of the excess. The §551 Abs. 4 BGB provision makes only the excess void — the deposit clause itself remains valid up to the statutory maximum.
Can I pay the deposit in instalments?
Yes. §551 Abs. 1 BGB gives every tenant the statutory right to pay the security deposit in three equal monthly instalments. The first instalment is due at the start of the tenancy: on or before the day the lease begins. The second instalment becomes due together with the second month's rent. The third falls due together with the third month's rent.
So if your tenancy starts on 1 September, you pay one-third at the start of September, one-third at the start of October, and the final third at the start of November. Importantly, this right cannot be contractually waived. A clause in the lease requiring the full deposit to be paid upfront is unenforceable against the tenant.
The landlord cannot refuse to hand over the keys, threaten to withdraw the offer, or penalise you in any way for invoking this right. To exercise it clearly and avoid any misunderstanding, notify the landlord in writing before move-in that you intend to pay in three instalments, and make each transfer punctually with a clear reference. The BGH confirmed in May 2025 (VIII ZR 256/23) that serious persistent default on a Barkaution can give grounds for termination, so paying on time remains essential.
How long does the landlord have to return the deposit?
§551 BGB sets no fixed statutory deadline for returning the deposit. What the law provides is that the landlord has a reasonable period (angemessene Prüfungsfrist) to examine their claims. BGH case law has consistently translated this into a practical range of three to six months from the end of the tenancy.
Three months is generally sufficient for a straightforward case. Six months is accepted where the landlord has credible reasons for delay: for example, obtaining contractor quotes for damage repairs, or waiting on documentation of a utility balance.
Where the Nebenkostenabrechnung (utility bill statement) for the final year of the tenancy is still outstanding, the landlord may withhold a proportionate reserve beyond the six-month window, because §556 Abs. 3 BGB allows up to twelve months after the end of the billing year for the statement to be issued. Once the utility bill is issued and any balance settled, the retained portion must be returned promptly.
The full deposit cannot be withheld indefinitely on utility grounds: only a reasonable, proportionate reserve is justified. If you have received no deposit and no breakdown after six months, the landlord is in default and you should proceed with a formal written demand.
What can the landlord deduct from my deposit?
A landlord in Germany may make deductions from the deposit for three categories of claim. First, unpaid rent: if you owe rent arrears at the end of the tenancy, the landlord can offset that debt against the deposit. Second, genuine property damage: this means damage to the flat caused by you (or persons in your household) that goes beyond normal wear and tear.
Examples of genuine damage include holes punched in walls, stains on floors that cannot be attributed to ordinary use, broken fixtures, or burns. For replacements, the landlord must apply a neu-für-alt (new-for-old) reduction, deducting the depreciation value of the replaced item rather than its full replacement cost. Invoices from contractors must be provided.
Third, outstanding Nebenkostennachforderungen: if the utility bill for the final period shows a balance you owe, that can be deducted. The landlord bears the full burden of proof for every deduction and must provide documentary evidence. Note also the BGH ruling of July 2024 (VIII ZR 184/23): time-barred damage claims under §548 BGB can still be offset against the deposit, even though they can no longer be pursued as standalone lawsuits.
What counts as normal wear and tear in Germany?
Normal wear and tear (vertragsgemäße Abnutzung) describes the gradual, unavoidable deterioration that results from ordinary residential use of a property. German courts consistently hold that landlords cannot charge tenants for it, because ordinary use is exactly what the tenancy permits.
The practical test is whether the deterioration would have occurred in any normal tenancy, regardless of how carefully the occupant behaved. Typical examples of normal wear and tear include: light scuff marks on walls from furniture contact; slight fading of paintwork caused by sunlight over several years; minor scratches on wooden or laminate floors from daily foot traffic; small nail holes from hanging pictures (where this is customary and proportionate); worn carpet in high-traffic areas such as hallways; and discolouration of grouting in bathrooms over time.
What is not normal wear and tear: burns on a floor, large holes in plaster, broken windows, fixtures deliberately removed, or stains that could only result from negligence or accident. The Übergabeprotokoll is your best tool for distinguishing between pre-existing deterioration and damage caused during your tenancy.
A landlord who claims for normal wear and tear without providing specific evidence of damage caused by you has no valid deduction claim. Cosmetic repairs under void Schönheitsreparatur clauses (those with rigid time intervals, for example) also fall outside the tenant's liability, following long-established BGH case law.
What is the Übergabeprotokoll and why does it matter for my deposit?
The Übergabeprotokoll (handover protocol) is a written record of the condition of the flat, signed by both landlord and tenant at the time of moving in and moving out. At move-in, it documents every defect, mark, or imperfection that already existed before you took possession: a chip in a tile, a water stain on a ceiling, a scratched floor panel, a broken handle.
This documentation is critical. Any damage recorded in the move-in protocol is pre-existing, and you cannot be held liable for it when you leave. Without a move-in protocol, a landlord could later claim that damage you did not cause was your responsibility, and you would face the very difficult task of proving otherwise. Courts will not simply take your word that a defect was there before you moved in.
At move-out, the protocol records the condition at handover. Both parties should sign it, and each should keep a copy. Take dated photographs as a supplement: a phone camera with automatic date-stamping creates a timestamped visual record. If the landlord refuses to conduct a handover inspection or declines to sign the protocol, note this in writing immediately.
The protocol is not legally mandatory under German law, but its absence almost always disadvantages the tenant in any subsequent dispute. Wunderflats recommends completing one at both the start and end of every tenancy.
What should I do if my landlord does not return the deposit?
If three to six months have passed since the end of your tenancy and the landlord has not returned the deposit or provided a written breakdown of deductions, take the following steps.
First, send a formal written demand (Mahnschreiben) by registered post (Einschreiben mit Rückschein) setting a clear deadline of fourteen days. State the deposit amount, the tenancy end date, and your bank details. Keep a copy and the proof of posting.
Second, if there is no response within the deadline, contact a local Mieterverein (tenants' association). Membership typically costs 80 to 120 EUR per year and gives access to legal advice from qualified tenancy lawyers. The Mieterverein can assess whether the landlord's deductions are legally valid and can draft further correspondence on your behalf. In many cases, a formally worded letter from the association resolves the matter without court involvement.
Third, if the landlord still does not comply, file a Mahnbescheid (payment order) at the Amtsgericht (local court) in the landlord's district. This is a standardised low-cost procedure and does not require a lawyer. If the landlord does not object within two weeks, it becomes an enforceable judgment. Do not delay beyond the three-year limitation period under §195 BGB.
Can the landlord keep my deposit if I did not do the cosmetic renovations required by my lease?
It depends entirely on whether the renovation clause (Schönheitsreparaturklausel) in your lease is legally valid. German courts, following long-established BGH case law, have declared many standard renovation clauses void.
A clause is invalid if it sets rigid periodic intervals — for example, repainting walls every three years or every five years regardless of whether the flat actually needs it. These clauses were declared void because the obligation is triggered by a calendar, not by the actual condition of the flat (BGH VIII ZR 361/03 and subsequent rulings). A clause is also void if you moved into an unrenovated flat and the clause still requires you to renovate on departure.
Quotenabgeltungsklauseln (proportional cost-sharing formulas for short tenancies) were definitively declared void by the BGH in 2015 (VIII ZR 185/14). If the clause in your lease falls into any of these void categories, the obligation to renovate never arose legally, and the landlord has no basis to deduct renovation costs from the deposit.
Always check the clause with a Mieterverein or a Rechtsanwalt before agreeing to any renovation-related deduction. Many tenants pay for work they are not legally required to do simply because they are not aware that the clause is void.
Does the landlord have to pay me interest on my deposit?
Yes. §551 Abs. 3 BGB requires the landlord to invest the deposit in a savings account bearing the interest rate applicable to deposits with a three-month notice period (Spareinlagen mit dreimonatiger Kündigungsfrist). The interest earned on the account belongs to the tenant, not the landlord. When the deposit is returned at the end of the tenancy, it must include all accrued interest for the full period the money was held.
In practice, interest rates on this type of account have been low for much of the past decade, so the amount is often modest. But the principle is clear: the landlord has no right to retain the interest earned on your money.
If the landlord has not invested the deposit in a qualifying separate account at all — holding it in their current account, for example — they are in breach of §551 Abs. 3 BGB. In that situation, a court can award the tenant the interest they would have received had the deposit been properly invested.
You can request proof that the deposit is held in a compliant separate account at any point during the tenancy. Failure to provide this proof within a reasonable deadline gives you the right to withhold future rent payments up to the deposit amount, until proof is provided.
Sources
- §551 BGB — Begrenzung und Anlage von Mietsicherheiten, gesetze-im-internet.de (current version, accessed July 2026)
- §548 BGB — Verjährung der Ersatzansprüche und des Wegnahmerechts, gesetze-im-internet.de (current version, accessed July 2026)
- BGH, Pressemitteilung 144/2024: Aufrechnung mit verjährten Schadensersatzforderungen — Urteil vom 10. Juli 2024, VIII ZR 184/23, bundesgerichtshof.de
- BGH, Urteil vom 7. Mai 2025, VIII ZR 256/23 — fristlose Kündigung bei Kautionsverzug (Barkaution)
- §551 BGB mit Kommentierungen und Rechtsprechungsübersicht, dejure.org (accessed July 2026)
- §548 BGB mit Kommentierungen, dejure.org (accessed July 2026)
- Mietkaution Rückzahlung: Fristen und Rechte, mietrecht.com (accessed July 2026)
- Kautionseinbehalt nach Auszug, deutschesmietrecht.de (accessed July 2026)
- Wohnungsübergabeprotokoll: Tipps und Vorlage, ImmoScout24 (accessed July 2026)
- Wunderflats internal data, Jun 2025–May 2026. Standard furnished mid-term bookings only. Aggregated, anonymised booking data across 10 German cities.
