How much deposit can a landlord ask for?
At most three months' net cold rent. Under § 551 BGB the deposit may be no more than three months' rent — the net cold rent (excluding service charges). You have the right to pay it in three equal monthly instalments, the first at the start of the tenancy. The landlord must hold the deposit separately from his own assets in an account that is insolvency-proof and interest-bearing — the interest belongs to you. After you move out he must settle promptly and repay the deposit (less any justified claims).
📋 The rules
- At most 3 months' net cold rent (§ 551 BGB)
- Payable in 3 monthly instalments — first at the start of the tenancy
- Landlord holds it separately, insolvency-proof and with interest
- Interest belongs to the tenant
- After move-out: prompt settlement and repayment
🔓 Exceptions
- For stepped/index rents, the net cold rent at the start of the contract is decisive
- Instead of cash, a guarantee or deposit insurance is possible (voluntary)
- The landlord may withhold a reasonable part for open claims (damage, arrears)
⚠️ Penalties & fines
If the landlord demands more than three months' net cold rent, the agreement is void to that extent — you can reclaim the overpayment. If he doesn't hold the deposit separately, you may withhold rent up to the deposit amount until he fixes it. If he fails to repay after settlement, you can sue for it (with interest).
📎 Official sources
- § 551 BGB · Cap and investment of rental security →
- German Tenants' Association · Rental deposit →
- Verbraucherzentrale · Rental deposit — amount, holding, repayment →
❓ Frequently asked
How high can the deposit be?
At most three months' net cold rent — the rent without service and heating charges. If the landlord asks for more, the agreement is void to that extent and you can reclaim the overpayment.
Can I pay the deposit in instalments?
Yes. You have a statutory right to pay it in three equal monthly instalments. The first is due at the start of the tenancy, the others with the following rents.
How must the landlord hold the deposit?
Separately from his own assets, insolvency-proof and interest-bearing — classically on a deposit account. The interest belongs to you and increases the security.
When do I get the deposit back?
After you move out, once the landlord has settled. The law sets no fixed deadline; a few weeks to a few months is usual. For possible service-charge arrears he may temporarily withhold a reasonable part.
May the landlord keep some of it?
Yes, but only for justified claims — such as damage you caused (beyond normal wear) or open arrears. He must pay out the rest promptly, otherwise you can sue.
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