When you rent a home in Germany, the landlord will usually ask for a security deposit (Mietkaution). It can cover unpaid rent, damage beyond normal wear and tear, or outstanding service charges. German law limits the amount and lets tenants pay in instalments.
How much can a rental deposit be?
For residential leases, the deposit may not exceed three times the monthly net cold rent (Nettokaltmiete). This excludes service and heating charges. The rule is set out in section 551 of the German Civil Code (BGB).
Worked example
| Item | Amount |
|---|---|
| Net cold rent | €800 |
| Monthly service-charge advance | €200 |
| Maximum deposit (3 × €800) | €2,400 |
The calculation uses the €800 net cold rent, not the €1,000 warm rent. Try your own figures with the rental deposit calculator.
You can pay in three monthly instalments
You do not have to transfer the entire deposit before moving in. Section 551 BGB allows three equal monthly payments. The first is due when the tenancy begins; the next two are due with the following rent payments. In this example, each instalment is €800.
How must the landlord hold the deposit?
- The landlord must keep the deposit separate from personal assets.
- Any interest belongs to the tenant and is added to the security.
- Common arrangements include a deposit account, savings book or rental-deposit guarantee. The statutory cap still applies.
When is the deposit refunded?
After you move out, the landlord may take a reasonable period to review possible claims. Amounts for damage beyond normal wear and tear or other outstanding claims may be deducted. Record the condition of the home and meter readings at move-in and move-out, ideally with a signed handover report and photos.
Common questions
Does the three-month limit apply to commercial leases?
No. The statutory cap applies to residential tenancies. Commercial deposits are generally agreed between the parties.
Can the landlord require the full deposit before handing over the keys?
You may generally pay the deposit in three instalments under section 551 BGB. A clause requiring the full amount in advance cannot remove that statutory right.
This article provides general information and is not legal advice. For an individual dispute, contact a tenants’ association or a lawyer.