Deposit

The deposit, and getting it back

A German deposit is capped at three cold rents and you may pay it in three monthly instalments. Unpaid rent and real damage may be deducted, normal wear and tear may not. No statutory deadline exists for the refund; a few months is what courts consider reasonable, and the handover protocol settles almost every argument about it.

The cap, and your right to pay in parts

§ 551 BGB caps the deposit at three times the cold rent, calculated without the service-charge advance. A clause asking for more is void for the excess, and you can reclaim it.

You also have the right to pay in three equal monthly instalments, the first at the start of the tenancy. A contract clause demanding the full amount upfront does not override this; the right is statutory.

Furnished short-term lets commonly ask for two months, usually calculated on the all-inclusive price. Because there is no separate cold rent in those contracts, the arithmetic is different from an empty flat.

While you live there

The deposit stays untouched until the tenancy ends. It is a security, not a balance that current claims are taken from, and you will not see it again during the tenancy.

You also may not live it out, meaning you cannot simply skip the last month's rent. Doing so puts you in arrears, and the final statement then carries one more open claim than it otherwise would.

If the flat is sold while you live there, the deposit passes to the new owner along with the tenancy. From then on they, not the previous landlord, are who you ask for it back.

Deductions: the line between wear and damage

A landlord may deduct open claims from the tenancy: unpaid rent, a shortfall from the service-charge settlement, and compensation for genuine damage.

What may not be deducted is ordinary wear from normal use. § 538 BGB says so plainly, and it is the most common dispute: scuff marks on the floor, a reasonable number of picture hooks, walls dulled after years are wear, not damage. A burn in the parquet, a cracked basin, a missing door are damage.

Watch for clauses about Schönheitsreparaturen, cosmetic repairs. Many are void, especially rigid schedules that require redecorating on a timetable regardless of condition, and any obligation to redecorate at the end when the flat was handed over undecorated. Where the clause is void, you owe nothing and the deduction is unjustified.

How long they may take

There is no statutory deadline. The landlord may take a reasonable period to check for outstanding claims; in practice courts accept something in the range of three to six months, depending on whether a service-charge settlement is still pending.

If only that settlement is outstanding, they may hold back a proportionate amount, not the whole deposit. If months pass with no word, set a written deadline and demand a statement for whatever is being withheld.

Two practical things speed it up: sign a handover protocol recording the condition of the flat when you leave, and send your bank details without being asked. Most delays come down to the landlord not having an account number.

How it works here

At STACEY the deposit is two months' rent, due within 48 hours of booking. After you move out we settle it: unpaid rent and real damage are deducted, normal wear is not. The room check and the final month's billing come first, which is why it takes six to eight weeks. You receive a statement listing every item, and it asks you for the account to pay into; an account outside SEPA works too. Any damage is entered as its own line with an amount, and you see it before anything is deducted.

Short answers

What is the maximum deposit in Germany?+

Three cold rents (§ 551 BGB), calculated without service charges. Anything agreed above that is void for the excess and can be reclaimed.

Do I have to pay it all at once?+

No. You may pay in three equal monthly instalments, the first when the tenancy starts. A clause in the contract saying otherwise does not change this.

Can the landlord deduct repainting?+

Only if a valid cosmetic-repairs clause exists and the work is genuinely owed. Rigid timetables and an obligation to redecorate at the end of an undecorated flat are usually void, and normal wear is already covered by the rent under § 538 BGB.

How long can a landlord hold the deposit?+

As long as they reasonably need to check for claims, typically a few months. If only the service-charge settlement is pending, they may withhold a proportionate part, not the whole sum.

Can I use the deposit for the last month's rent?+

No. The final rent is due as normal, and withholding it puts you in arrears.

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