📝 Tenancy agreement and deposit
In brief
A tenancy agreement for a flat does not have to be in writing. Writing is safer, though. Read it carefully before you sign.
For the deposit:
- It may be at most three times the monthly rent. Service charges do not count.
- You may pay the deposit in three equal monthly instalments.
- The landlord must invest the money with a bank, separate from his own assets.
- The interest belongs to you.
If the landlord demands more, that is invalid. Fixed-term tenancy agreements are only allowed for certain reasons. The reason must be stated in the agreement.
Step by step
- Check the agreementLook at the rent, service charges, fixed term, deposit and clauses on renovation.
- Limit the depositDo not pay more than three times the net basic rent (Nettokaltmiete). If needed, ask to pay in instalments.
- Ask for proofHave the landlord confirm in writing at which bank the deposit is invested separately.
- When you move outAsk for the deposit back in writing after handing over the flat.
Deadlines
- A higher deposit is invalid, even if it is in the agreement.
- Do not pay the deposit in cash without a receipt.
- A fixed-term tenancy needs a statutory reason (§ 575 BGB). If there is none, the agreement is open-ended.
- How long the landlord may keep the deposit after you move out in order to check the flat is not set out in the law. Practice follows court rulings; not checked here.
In depth · legal basis, figures and practice – for advisers and professionals
Rental security, § 551 BGB
The security may be at most three times the rent for one month, excluding operating costs. The tenant may pay the sum of money in three equal monthly instalments. The first instalment is due at the start of the tenancy, the others together with the following rent payments. The landlord must invest a sum of money separately from his assets with a credit institution, usually at the interest rate customary for savings deposits with a three-month notice period. The income belongs to the tenant and increases the security. The duty to pay interest does not apply to student and youth residences. Deviating agreements to the tenant's detriment are invalid.
Fixed-term tenancy, § 575 BGB
A fixed-term residential tenancy is only permitted if the landlord wants, after expiry, to use the premises for himself or for family or household members, to demolish them or substantially alter or repair them, or to let them to a person obliged to provide services. He must inform the tenant of the reason in writing when the agreement is concluded, otherwise the agreement is deemed open-ended. The tenant may, at the earliest four months before expiry, ask for information on whether the reason still exists.
Eviction period for fixed-term tenancies
The court eviction periods under § 721 ZPO do not apply to fixed-term tenancies under § 575 BGB. If a fixed-term tenancy ends by extraordinary termination, an eviction period may be granted at most until the end date set in the contract (§ 721 Abs. 7 Satz 2 ZPO).
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