Your checklist

Rental deposit (Kaution) in Germany: limits, payment and refund

In German: Mietkaution (Kaution)

Is it required?
Usually required
When:
First instalment at the start of the tenancy; refund some months after you move out
Time:
Paying: minutes. Refund: often several months.
Cost:
Max. 3 months' Kaltmiete
Last checked:
Short answerA German rental deposit (Kaution) may be at most three months' net cold rent (Kaltmiete), without service charges. You may pay it in three equal monthly instalments. The landlord must keep it separate from their own money, in an account with savings interest, and the interest belongs to you. After you move out, you get it back once the landlord has checked for open claims.

A deposit is not required by law, but almost every rental contract asks for one.

On this page
  1. Who needs it
  2. The rules
  3. What you need
  4. How to do it
  5. What happens afterwards
  6. Common problems
  7. Costs

Who needs it

Almost every tenant in Germany. The law does not force a landlord to ask for a deposit, but nearly all rental contracts include one. It protects the landlord against unpaid rent, damage beyond normal wear, or unpaid service charges.

The rules below come from § 551 BGB (German Civil Code). They apply to normal residential tenancies. Any contract clause that is worse for you than the law is invalid. Student halls have some exceptions on interest.

The rules

Rule What the law says
Maximum amount Three times the monthly rent without service charges shown separately. In practice: three months' Kaltmiete (net cold rent).
Instalments If you pay cash or by transfer, you may pay in three equal monthly instalments. The first is due at the start of the tenancy.
Where the money goes The landlord must put it in a bank account at the usual savings interest rate, separate from their own money.
Interest The interest belongs to you and increases the deposit.

What you need

  • The signed rental contract (mandatory before you pay anything)
  • The landlord's bank details or deposit account details
  • Optional: a separate account in your name that is pledged to the landlord (Kautionskonto or Mietkautionskonto). Many banks offer this.

How to do it

  1. Sign the contract first. Never transfer a deposit for a flat you have not seen or before a contract exists. Advance-payment scams with fake flats are common. See finding an apartment.
  2. Choose how to pay. Common options are a bank transfer to the landlord, a pledged savings account, or a deposit alternative (see below).
  3. Use the instalment right if you need it. Tell the landlord in writing that you will pay in three monthly parts.
  4. Keep proof. Save the transfer confirmation and ask the landlord in which account the deposit is held.
  5. Document the flat's condition at move-in with a handover report and dated photos. This is your best protection when you move out.

Deposit alternatives

Instead of cash, some landlords accept a Mietkautionsbürgschaft (deposit guarantee). It is often called Kautionsversicherung (deposit insurance). A provider promises to pay the landlord if needed, and you pay a yearly fee. This keeps your cash free, but:

  • The fees are not refunded, and over several years they can add up to more than the interest you would have earned.
  • If the provider pays the landlord, it will ask you to repay the money.
  • The landlord must agree. It is optional for both sides.

A bank guarantee (Bankbürgschaft) from your own bank works in a similar way.

What happens afterwards

When you move out, you hand back the keys and usually sign a handover report. The landlord then checks whether they still have claims, for example for damage beyond normal wear, unpaid rent, or service charges.

  • The law sets no fixed deadline for returning the deposit. The landlord may take a reasonable time to check. In practice this is often a few months.
  • Service charges: if the yearly service-charge statement (Nebenkostenabrechnung) for your last period is not ready yet, the landlord may usually keep back a reasonable part of the deposit until it is. The rest should be paid out.
  • You get the deposit back with interest.

Common problems

Can my landlord ask for more than three months' rent as a deposit?

No. The limit is three times the monthly net cold rent. This includes all securities together, for example cash plus a guarantee.

Does my landlord have to pay me interest on the deposit?

Yes, if it is a cash deposit in a normal tenancy. The landlord must invest it at the usual savings rate, and the interest belongs to you. With today's rates the amount can be very small.

My landlord hasn't returned my Kaution after moving out. What can I do?

Ask in writing for the refund or a statement of the claims, and set a deadline. If there is no answer, a local tenants' association (Mieterverein) or a lawyer can help. Keep your handover report and photos.

Can the landlord keep the deposit for normal wear and tear?

No. Normal use, such as light marks on walls or worn floors from ordinary living, is not damage. Whether you must repaint depends on the clauses in your contract, and many standard clauses are invalid. Get advice if you are unsure.

Can I use the deposit as my last months' rent?

No. You must keep paying rent until the contract ends. The deposit is a security, not a prepayment.

Costs

  • The deposit itself: max. three months' Kaltmiete, refunded with interest.
  • Deposit guarantees: a yearly fee that you do not get back.
  • A pledged deposit account is often free, but check your bank's terms.

Official sources

Rules can change. These are the pages we checked — they have the final word. How we check facts

This guide explains how things usually work. It is not legal advice. For disputes or unusual situations, a tenant association (Mieterverein), consumer advice centre (Verbraucherzentrale) or lawyer can help.