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What is the rental deposit (Kaution)?
The rental deposit (Kaution) is a sum of money that the tenant pays at the beginning of the tenancy. It must not exceed three times the basic rent (Kaltmiete).
The deposit is kept in a separate, interest-bearing bank account and is repaid to the tenant at the end of the tenancy if there are no outstanding debts and no damage to the property.
When can the deposit be refunded?
After the tenancy has ended and the property has been handed back in good condition, the tenant is entitled to request repayment of the deposit.
However, the landlord is not obliged to refund the money immediately upon moving out. They are allowed a reasonable period of time to check all claims.
How long is the waiting period?
In practice, the waiting period is usually between 3 and 6 months after the property has been handed over.
During this time, the landlord may:
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Check whether there is any damage beyond normal wear and tear.
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Wait for the final service charge / utility bill (Nebenkostenabrechnung) before making the final settlement.
When may the landlord retain part of the deposit?
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To pay for repairs of damage that exceed normal use, such as large holes in the walls, damaged flooring, or heavily damaged fixtures.
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To cover unpaid rent or outstanding service charges.
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To pay for additional cleaning costs if the flat is left in an unacceptably dirty condition.
What should the tenant do before moving out?
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Repair minor damage as far as possible or take reasonable corrective action.
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Carry out a final thorough cleaning of the flat.
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Document the condition of the property with photos before handing it over.
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Draw up a handover protocol (Übergabeprotokoll) signed by both parties, describing the condition of the flat at the time of moving out, in order to avoid future disputes.
Is the tenant entitled to receive the interest?
Yes.
The tenant is entitled to receive the deposit plus the interest accrued in the bank account where the deposit has been kept.
What if the landlord delays payment?
The tenant may send a formal written reminder (Mahnung) setting a clear deadline for repayment of the deposit.
If the landlord still fails to pay, the tenant has the right to bring a legal action to claim the deposit and, where applicable, interest or compensation.
Practical tips
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Keep copies of all receipts and correspondence relating to the deposit from the start of the tenancy.
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Do not unilaterally offset the deposit against the last month’s rent, as this may be considered non-payment and can cause legal problems.
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In case of dispute or long delays, contact a tenants’ association (Mieterverein) or a specialised legal advisor.
Conclusion
The repayment of the rental deposit (Kautionsrückzahlung) after moving out is an important legal right for tenants in Germany, but it is subject to clear conditions, especially the proper return of the property and the settlement of all outstanding payments.
By preparing well, cleaning the flat, documenting its condition and communicating clearly and in writing with the landlord, you can usually secure prompt and full repayment of your deposit and avoid unnecessary conflicts.
The team of authors and editors of this website strives, through extensive research and consultation of multiple sources, to provide accurate and reliable information. Nevertheless, errors or unverified details can never be completely ruled out. The information in these articles should therefore be regarded as an initial point of reference only; for binding, case-specific advice you should always contact the competent authorities or qualified professionals.
