> For the complete documentation index, see [llms.txt](https://help.immodio.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.immodio.app/en-start/guides-group/tenancies/create-a-tenancy-agreement/rental-deposit.md).

# Rental deposit

<figure><img src="/files/OaTpoDYr2I7ODADuOvY5" alt=""><figcaption></figcaption></figure>

* According to § 551 BGB, the **legally permissible maximum limit** is **three months' rent** (net cold rent without advance payment of operating costs).
* The tenant may pay the deposit **in three equal monthly instalments**, starting with the start of the lease (§ 551 para. 2 BGB).
* The deposit must be kept **separately from the landlord's assets** (§ 551 para. 3 BGB). Immodio recommends the free rental deposit account by Heykaution. You can open it 100% digitally in just 5 minutes.

  👉 [Open a free rental deposit account now\*](https://heykaution.de/?partner_id=10001\&utm_campaign=10001\&utm_medium=ppl\&utm_source=partner)

Immodio automatically calculates the **maximum permissible amount of the rental deposit** for you in accordance with § 551 BGB. In Germany, the deposit may be **a maximum of three months' rent** (without advance payment of operating costs). This value is already pre-entered in the corresponding field.

You can **customize** the amount if needed. However, please note:\
A deposit amount that exceeds the legal limit is **partially invalid**. The tenant can reclaim the **excessive share** – limited to the amount that exceeds the permissible three months' rent [(cf. Federal Court of Justice, judgment of 03.12.2003 – VIII ZR 86/03).](http://juris.bundesgerichtshof.de/cgi-bin/rechtsprechung/document.py?Gericht=bgh\&Art=en\&nr=28324\&pos=0\&anz=1)

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<summary><strong>Deposit provision</strong></summary>

Via Immodio, you can agree individually with the tenant how he or she can provide the deposit. Simply select the appropriate checkboxes:

<figure><img src="/files/FcGEUpFSJKejRt6Qz2l1" alt=""><figcaption></figcaption></figure>

If nothing specific is agreed in the rental agreement, the landlord must invest the deposit with a credit institution at the usual interest rate for savings deposits with a three-month notice period – many credit institutions offer a separate rental deposit account for this purpose. You can also open a \[free rental deposit account] through our partner heykaution(<https://heykaution.de/?partner\\_id=10001\\&utm\\_campaign=10001\\&utm\\_medium=ppl\\&utm\\_source=partner>).

**Cash payment**\
In the case of "cash payment", the tenant hands over the deposit amount to the landlord in cash, which is formally a cash deposit. The landlord is legally obliged to invest this money **safely and separately from his own assets** in an account (**deposit account)** with a credit institution. The account must bear interest at least at the interest rate for savings deposits with a three-month notice period. The tenant is entitled to the interest income and at the same time increases the deposit amount (§ 551 BGB). You can open a [open free rental deposit account](https://heykaution.de/?partner_id=10001\&utm_campaign=10001\&utm_medium=ppl\&utm_source=partner).

**Bank transfer**\
With "bank transfer", the tenant transfers the deposit amount to the landlord, which is formally also a so-called cash deposit. The landlord is legally obliged to invest this money **safely and separately from his own assets** in an account (**deposit account)** with a credit institution. The account must bear interest at least at the interest rate for savings deposits with a three-month notice period. The tenant is entitled to the interest income and at the same time increases the deposit amount (§ 551 BGB). You can open a [open free rental deposit account](https://heykaution.de/?partner_id=10001\&utm_campaign=10001\&utm_medium=ppl\&utm_source=partner).

**Guarantee / Rent Guarantee**\
A rental guarantee is a guarantee for the rental deposit, where a bank or insurance company usually guarantees the landlord to guarantee the claims arising from the tenancy (e.g. rent arrears or damages) **up to an agreed amount**. The tenant usually pays a monthly fee (guarantee commission) for the guarantee. As a landlord, you will receive security in the form of a guarantee certificate.

**Pledged account**\
In the case of a **pledged account**, the tenant deposits the rental deposit in a **specially created savings account in his name** and pledges it for the benefit of the landlord. The landlord thus receives a lien on the credit, but cannot freely dispose of it. A written pledge declaration is drawn up, which is available to the bank and to you as the landlord.

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<summary><strong>Due date of the deposit</strong></summary>

If a **cash deposit (in Immodio bank transfer or cash payment)** is agreed, the **tenant has the right** to pay it **in three equal monthly installments** (§ 551 para. 2 BGB).

* The first installment is due at the beginning of the tenancy.
* The second and third instalments are to be paid at the beginning of the second and third month of rent.
* The tenant is only in default if he does not pay the respective instalment with the rent of the corresponding month.

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<summary><strong>Refund of the deposit</strong></summary>

After the termination of the tenancy, the landlord is obliged to **repay** the deposit paid by the tenant according to § 551 BGB, provided that **no open claims** from the tenancy exist. After the end of the tenancy, the landlord must declare to the tenant within a reasonable period of time whether and what claims he is asserting against the tenant. However, an immediate repayment claim does not exist automatically when the tenant moves out.\*\*\
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**Deposit Repayment Period**

* How long a landlord may retain the rental deposit after the end of the tenancy depends on the specific circumstances of the individual case. As a rule, according to general assessment, the landlord is granted a settlement period of **three to six months** by the courts. (cf. Munich District Court, judgment of 07.04.2016 – 432 C 1707/16). Under special conditions, a longer retention may also be justified. This applies in particular if, for example, an expert report gives rise to significant claims for damages due to damage to the rented premises. Within this review period, the tenant's claim for repayment of the deposit is generally not yet due.

**Retention for open utility bills**

* In addition, the landlord is entitled to retain an appropriate part of the deposit if an additional payment of operating costs is still to be expected. In this regard, the Federal Court of Justice has ruled that such a withholding may be permissible until the expiry of the statutory settlement period (Federal Court of Justice, judgment of 18.01.2006 – VIII ZR 71/05). The decisive factor for the amount of the permissible withholding is the circumstances recognizable at the end of the contract. If previous utility bills do not allow a reliable estimate of the expected additional payment, an amount of **about three monthly** advance payments is often considered appropriate.

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