Rent Deposit in Germany (Mietkaution) 2026
Your rent deposit in Germany is capped at three months' cold rent by law (§551 BGB), and you have the right to pay it in three monthly installments. The landlord must keep it in a separate, interest-bearing account and return it after you move out, minus any valid claims.
Key Takeaways (2026)
- The deposit is capped at three months' cold rent (Kaltmiete) under §551 BGB. A higher demand is void.
- You can pay it in three equal monthly installments; the first is due when the tenancy starts.
- The landlord must hold it separately and pay interest; the money is protected if the landlord goes insolvent.
- A deposit guarantee (Mietkautionsbürgschaft) avoids tying up cash but costs ~4–7% per year and does not reduce what you owe.
- There is no fixed return deadline; landlords typically take 3–6 months and may hold part until the final utility bill.
Your Deposit Rights at a Glance
German tenancy law protects renters strongly. Here are the core rules, each backed by the Civil Code (German: BGB).
| Rule | What it means | Legal basis |
|---|---|---|
| Maximum amount | 3 months' cold rent (Kaltmiete, without utilities) | §551(1) BGB |
| Payment in installments | Pay in 3 equal monthly parts; first at move-in | §551(2) BGB |
| Separate, interest-bearing account | Held apart from landlord's assets; interest is yours | §551(3) BGB |
| Return after move-out | No fixed deadline; in practice up to 3–6 months | Case law / consumer advice |
Source: §551 BGB (Bürgerliches Gesetzbuch), gesetze-im-internet.de; Deutscher Mieterbund.
How Much Is the Deposit and How Do You Pay It?
The deposit is based on the cold rent (German: Kaltmiete), which is the rent before utilities. For example, if your cold rent is €750 per month, the maximum deposit is €2,250 (three months). Utilities (Nebenkosten) are never counted toward the deposit.
You do not have to pay it all at once. By law you can split it into three equal monthly payments. With a €2,250 deposit, that is €750 at move-in and €750 in each of the next two months. This right cannot be removed by the rental contract.
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Deposit Guarantee (Mietkautionsbürgschaft)
A deposit guarantee, also called deposit insurance, lets you skip locking up cash. Instead of paying the deposit, you pay a yearly premium and an insurer or bank promises the deposit amount to your landlord. Premiums are typically around 4 to 7 percent of the deposit per year. On a €2,250 deposit, that is roughly €90 to €115 per year.
Important: A deposit guarantee does not reduce what you owe. If your landlord makes a valid claim and the insurer pays, the insurer then demands the full amount back from you. You stay fully liable for damage and unpaid rent, and the yearly premium is not refundable.
A guarantee only works if your landlord agrees to it. They can refuse and insist on a cash deposit. Weigh the convenience of keeping your cash against years of non-refundable premiums, especially for long tenancies.
Getting Your Deposit Back
German law sets no fixed deadline for returning the deposit. Courts and consumer advisers accept a review period of up to three to six months, during which the landlord checks the flat for damage and unpaid rent. The landlord may keep a reasonable portion until the final utility statement (German: Nebenkostenabrechnung) is settled, which must be issued within 12 months.
To get your full deposit back: document the flat's condition at move-out with photos, attend the handover, and insist on a written handover protocol (Übergabeprotokoll). Your legal claim to the deposit lasts three years.
For free legal help in a dispute, contact the Verbraucherzentrale (consumer protection) or a local tenants' association (Mieterverein).
Frequently Asked Questions
How much rent deposit can a landlord ask for in Germany?
By law, the deposit (Mietkaution) is capped at three months' cold rent, the rent without utilities (Kaltmiete). This is set in §551 of the German Civil Code (BGB). Any clause demanding more than three months' cold rent is void, so you only owe the legal maximum even if the contract says otherwise.
Can I pay the rent deposit in installments?
Yes. Under §551(2) BGB you have the legal right to pay the deposit in three equal monthly installments. The first installment is due at the start of the tenancy, and the next two with the following two months' rent. A contract clause demanding the full deposit upfront in one payment is not enforceable.
Where does my deposit money go and does it earn interest?
Your landlord must hold the deposit separately from their own money, in an account that earns the standard savings interest rate (§551(3) BGB). The interest belongs to you and is added to the deposit. Holding it separately also protects your money if the landlord becomes insolvent.
How long does the landlord have to return my deposit?
German law sets no fixed deadline. In practice, landlords are generally allowed a review period of up to three to six months to check for damage and unpaid rent. They may keep a reasonable portion until the final utility bill (Nebenkostenabrechnung) is settled, which must be issued within 12 months. Your claim to the deposit lasts three years.
What is a Mietkautionsbürgschaft (deposit guarantee)?
A deposit guarantee, also called a deposit insurance, lets you avoid tying up cash. Instead of paying the deposit, you pay an annual premium and an insurer or bank guarantees the amount to your landlord. The premium is typically around 4 to 7 percent of the deposit per year. It is non-refundable and only works if your landlord agrees to accept it.
Does a deposit guarantee mean I owe nothing for damages?
No. A deposit guarantee only changes who pays the landlord first. If the landlord makes a valid claim and the insurer pays, the insurer then demands the full amount back from you (right of recourse). You remain fully liable for damages and unpaid rent. The product saves cash flow at move-in, not money overall.
Can my landlord force me to pay cash instead of a deposit guarantee?
Yes. The default form of deposit under §551 BGB is cash or a pledged savings account. A deposit guarantee is an alternative that both sides must agree to. Your landlord can refuse it and insist on a cash deposit, and equally cannot force you to take a guarantee instead of cash.
Authority Sources
- §551 BGB -the law on rental deposits (cap, installments, separate account), official text.
- Verbraucherzentrale -German consumer protection, deposit and tenancy advice.
- Deutscher Mieterbund -Germany's tenants' association.