Finally you have secured your new apartment, the boxes are packed, the deposit account is closed – the move should go smoothly like this. But often there are one or hurdles to overcome. It is particularly annoying when the old landlord makes life difficult and withholds the deposit. But is he allowed to do that? And what do tenants should know?
Why and how long is the landlord allowed to withhold your rental deposit?
The deposit for a rental property must be contractually agreed. It is intended to protect the landlord from damage caused by the tenant. According to German tenancy law, it may not exceed three months’ rent. In addition, the landlord must keep the sum on a separate savings account.
There are several situations in which the landlord can keep the rent deposit. For example, if there are still outstanding sums of rent or the missing payments of utility bills. In the case of utility costs, expected additional payments also count. In case of major damage, e.g., to co-rented furniture, or windows and doors, the landlord can use the deposit as compensation.
The landlord can also retain the deposit as a security in the event of minor damage or repairs – but these must be specified in detail in the rental agreement beforehand. Often, this includes that the tenant repaints the rental property when moving in or out or closes drill holes. However, the landlord must pay for wear and tear damage, such as to the stove or faucets.
How long the landlord may retain the deposit depends on the individual case or the due date. Normally, the period is between three and six months. This so-called reflection period is intended to give the landlord sufficient time for the service charge settlement and the acceptance. In the case of yearly accounts and service charges, the landlord can also withhold the deposit until the statement is available. Depending on the period, this can therefore take up to twelve months.
What do tenants need to be aware of?
Tenants should find out exactly what their obligations are in the lease. When moving in and out, it is also advisable to inspect the property with the landlord and prepare a handover report. All defects should be recorded there in as much detail as possible.
If tenants wish to reclaim their security deposit, this is possible after at least three months, at least for a partial amount. A written request to the landlord is initially sufficient. However, tenants should not postpone the repayment for too long or lose sight of it: The claim becomes time-barred after three years. If the landlord has not made any claims, the deposit should be paid out at short notice – usually within two weeks.
Tip
If you are unclear about the rent deposit, feel free to contact our experts at Black Label Property Management.
