No refund of the deposit?

The new flat has been found, the boxes are packed, the deposit account has been cancelled - the move should go so smoothly. However, there are often one or two hurdles to overcome. It is particularly annoying when the old landlord makes life difficult and withholds the deposit. But are they even allowed to do this? And what do tenants have to bear in mind?

Why and for how long can the landlord withhold the deposit?

The deposit for a rental property must be contractually agreed. It is intended to protect the landlord against damage caused by the tenant. According to tenancy law in Germany, it may not exceed three months' rent. In addition, the landlord must secure the sum separately from his assets (usually in a savings book or similar).

There are several situations in which the landlord can withhold the rental deposit. For example, if there are still outstanding amounts on the rent or service charge bill. In the case of service charges, this also includes expected additional payments. In the event of major damage, e.g. to furniture, windows or doors that are also rented out, the landlord can use the deposit as compensation.

The landlord can also retain the deposit as security in the event of minor damage or repairs - but these must be specified in the tenancy agreement beforehand. This often includes the tenant repainting the rented property when moving in or out or filling drill holes. However, the landlord must pay for wear and tear damage, such as to the cooker or taps.

How long the landlord may retain the deposit depends on the individual case and 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 acceptance. In the case of service charges, the landlord can also withhold the deposit until the statement is available. Depending on the period, this can take up to twelve months.

What do tenants need to consider?

Tenants should find out exactly what their obligations are in the tenancy agreement. When moving in and out, it is also advisable to inspect the property with the landlord and draw up a handover report. All defects should be recorded in as much detail as possible.

If tenants wish to reclaim their 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 repayment for too long or lose sight of it: The claim expires after three years. If the landlord has not made any claims, the deposit should be paid out quickly - usually within two weeks.