What is Security Deposit (Kaution)?

Security Deposit (Kaution)

Security deposit (Mietkaution) in Germany: maximum amount, investment requirements, refund rules, and tenant rights under § 551 BGB.

Financial

§ 551 BGB

Also known as: rental deposit, tenancy deposit

The security deposit (Mietkaution) under German law may not exceed three months' net cold rent. The tenant may pay in three equal installments. The landlord must invest the deposit separately from their own assets and credit the interest to the tenant. After the tenancy ends, the deposit must be returned within 3-6 months. (§ 551 BGB)

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Security Deposit (Kaution)

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