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 keep it separate from their own assets, invested at the usual savings rate, with the interest going to you; kept that way, the money is protected if the landlord goes insolvent.
- A deposit guarantee (Mietkautionsbürgschaft) avoids tying up cash but costs around 4 to 5.5% per year and does not reduce what you owe.
- There is no fixed return deadline; landlords get a reasonable review period, usually two to six 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 the BGB; a reasonable review period, typically two to six months | Deutscher Mieterbund guidance |
| Late installments | Arrears equal to two months' net rent (utility prepayments excluded) allow termination without notice or prior warning | §569(2a) BGB |
| Building is sold | The buyer takes over your deposit; the old landlord stays liable as a fallback | §566a BGB |
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.
One thing to take seriously: pay the installments on time. If you fall behind on the deposit by an amount equal to two months' net rent (utility prepayments do not count), the landlord may terminate the tenancy without notice and without a prior warning (§569(2a) BGB).
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Deposit Guarantee (Mietkautionsbürgschaft)
A deposit guarantee, often marketed as deposit insurance, lets you skip locking up cash. It does not insure you: for a yearly premium, an insurer or bank promises the deposit amount to your landlord, pays if the landlord makes a valid claim, and then recovers the money from you. Premiums are typically around 4 to 5.5 percent of the deposit per year; kautionsfrei.de, for example, quoted 4.7 percent per year on 27 August 2026 (check current terms and any minimum premium). On a €2,250 deposit, that is roughly €90 to €125 per year.
Providers run a credit check before they issue a guarantee, usually through Schufa or a similar agency. Some providers decline applicants without a German credit history; check the provider's requirements before applying, or read our guide to the Schufa score for foreigners first.
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 grant the landlord a reasonable review period to check the flat for damage and unpaid rent; the Deutscher Mieterbund calls two to three months reasonable in simple cases and, in individual cases, even longer than six months. The landlord may withhold a reasonable part until the final utility statement (German: Nebenkostenabrechnung) is settled, which must reach you within twelve months of the end of the billing period (§556(3) BGB).
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.
If the building is sold after you have moved in, the buyer takes over your deposit and has to return it to you. Should the buyer fail to pay, the previous landlord still owes you the money (§566a BGB).
If the Landlord Does Not Pay
Start with a written demand: name the amount, set a 14-day deadline, add your IBAN, and send it by registered post. If that changes nothing, a local tenants' association (Mieterverein), or a Verbraucherzentrale that offers tenancy advice, can help with the next step. Disputes about a residential tenancy go to the local court (Amtsgericht) regardless of the amount (§23 Nr. 2a GVG), and you may represent yourself there without a lawyer (§78 ZPO). Do not wait years: the claim becomes time-barred three years after the end of the year in which it fell due (§§195, 199 BGB).
Deposit scams that target newcomers
- Never transfer a deposit or rent before you have viewed the flat in person and signed a contract. The Verbraucherzentrale warns that a deposit is only due once the contract is signed and the tenancy is about to start (Verbraucherzentrale guide to fake listings).
- Pay by bank transfer with the reference "Mietkaution" and the address, never in cash without a receipt.
- In a residential tenancy the deposit is capped at three months' net rent; a demand above that is invalid and you only owe the legal maximum, even if the contract says otherwise (§551(1), (4) BGB).
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. Landlords get a reasonable review period to check for damage and unpaid rent; the Deutscher Mieterbund describes two to three months as reasonable in simple cases and, in individual cases, even longer than six months. They may withhold a reasonable part until the final utility statement (Nebenkostenabrechnung) is settled, which must reach you within twelve months of the end of the billing period (§556(3) BGB). Your claim becomes time-barred three years after the end of the year in which it fell due (§§195, 199 BGB).
What is a Mietkautionsbürgschaft (deposit guarantee)?
A deposit guarantee, often marketed as deposit insurance, lets you avoid tying up cash, although it does not insure you: the guarantor pays the landlord and then recovers the money from you. 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 5.5 percent of the deposit per year; kautionsfrei.de, for example, quoted 4.7 percent per year on 27 August 2026 (check current terms and any minimum premium). Unlike a cash deposit, the premiums are never paid back to you, and a guarantee 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.
What can I do if my landlord does not return the deposit?
Send a written demand with a 14-day deadline, ideally by registered post, and include your bank details. If nothing happens, a tenants' association (Mieterverein), or a Verbraucherzentrale that offers tenancy advice, can help with the next letter. Disputes about a residential tenancy go to the local court (Amtsgericht) regardless of the amount (§23 Nr. 2a GVG), and you do not need a lawyer there (§78 ZPO). The claim becomes time-barred three years after the end of the year in which it fell due (§§195, 199 BGB).
Authority Sources
- §551 BGB: the law on rental deposits (cap, installments, separate account), official text.
- §569 BGB and §566a BGB: termination for deposit arrears; the deposit when the building is sold.
- §23 GVG: residential tenancy disputes belong to the local court regardless of the amount.
- Deutscher Mieterbund: legal guidance on the return of the deposit (PDF, 2025).
- Verbraucherzentrale: German consumer protection, deposit and tenancy advice.