Getting your deposit back: when the money is due after you move out
German law sets no fixed day for repaying a deposit, but it gives the landlord very little time to pursue damage claims.
Checked by Radif Partners · Editorial policy · Method
What comes back: deposit plus interest
Deposit with interest
€2,163.79
| Of which interest | €63.79 |
After you move out, your landlord must account for the deposit (Kaution) and repay it with interest, to the extent he has no valid claims left. There is no fixed legal deadline for repayment: the Civil Code (BGB) names no month, and figures like three or six months are rules of thumb, not law. What the law does fix is the limitation period in Section 548(1) BGB: the landlord’s claims for changes to or deterioration of the flat become time-barred six months after he gets the flat back. If you return the keys on 30 November 2026, that period ends on 30 May 2027. Under Section 551(3) BGB the interest belongs to you and is added to the deposit. On a deposit of €2,940, 0.5 % over 6 years with compound interest gives €89.31, and 2.0 % gives €370.92. If a service-charge statement is still outstanding, the landlord may hold back a reasonable part; the law does not say how much.
No fixed deadline, but a duty to settle
Many guides quote a fixed deadline for returning a deposit. The law contains none. Neither Section 551 BGB nor any other provision says when the deposit must be repaid after the tenancy ends. The refund falls due once the landlord has had a reasonable time to check his claims. How long that is depends on the case: short for a clean handover with nothing outstanding, longer where damage is disputed or a service-charge statement is pending.
That does not mean the landlord may wait as long as he likes. He has to settle the deposit: list his claims, set them against the deposit plus interest and pay out the rest. Claims that plainly do not exist do not justify holding money back. And the short limitation period for damage puts a firm frame around him.
Six months for damage claims: Section 548 BGB
Under Section 548(1) BGB, the landlord’s claims for changes to or deterioration of the property become time-barred after six months. The clock starts when he gets the flat back, usually at the key handover, not when the lease formally ends. Your own claims for reimbursement of expenses or to remove fittings you installed, such as a kitchen, become time-barred six months after the tenancy ends (Section 548(2)).
| Flat returned | Damage claims time-barred |
|---|---|
| 30 November 2026 | 30 May 2027 |
| 31 August 2026 | 28 February 2027 |
| 15 March 2027 | 15 September 2027 |
The second row shows a detail: where the target month has no matching day, the period ends on the last day of that month. What limitation means for the deposit is less simple than it looks. Section 215 BGB allows set-off against a time-barred claim if the claim was not yet barred when set-off first became possible. Whether a landlord may still deduct damage from the deposit after six months is therefore a question of the individual case. What is certain: a landlord who neither settles nor names specific damage within six months is in a weak position.
What may be deducted, and what may not
The deposit secures all claims under the tenancy. The landlord may deduct:
- unpaid rent, and compensation for use after the tenancy ended,
- a top-up from a service-charge statement that arrived in time,
- damages for harm beyond normal wear and tear,
- costs you must bear under a valid lease clause.
Normal wear is not on that list: under Section 538 BGB the tenant is not responsible for changes caused by contractual use. Every deduction must be described so you can check it, with the type of damage and the amount. A handover record (Übergabeprotokoll) signed by both sides is the key evidence, together with dated photos at move-in and move-out.
Holding back money for a pending service-charge statement
The statement for your final year often arrives long after you leave. The landlord may therefore keep a part of the deposit matching the top-up he can expect. The law sets no amount; previous years’ top-ups are a sensible guide. The statement itself must meet the deadline in Section 556(3) BGB, twelve months after the billing period ends, or no top-up can be claimed. More on the service-charge top-up page.
The interest is yours
A cash deposit must earn interest, and the returns belong to the tenant and increase the security (Section 551(3) BGB). Over the years the deposit grows with compound interest. For a deposit of €2,940 (three months at €980 base rent) after 6 years:
| Account interest rate | Interest | Refund before deductions |
|---|---|---|
| 0.1 % | €17.68 | €2,957.68 |
| 0.5 % | €89.31 | €3,029.31 |
| 1.0 % | €180.87 | €3,120.87 |
| 2.0 % | €370.92 | €3,310.92 |
Only the bank knows the actual rate; the small calculator above uses whatever rate you enter. If the landlord never invested the deposit, he still owes you the interest a proper investment would have earned. Student and youth halls are exempt from the interest duty.
How to get your money back
- At handover, prepare a record, have it signed and note the meter readings.
- Give your new address and bank details in writing.
- Ask for a settlement of the deposit with interest and set a deadline.
- After the deadline, send a reminder; if that fails, a payment order or a claim at the local court.
If the deposit sat in a pledged savings account in your name, you do not need a payment but the landlord’s release of the pledge. For a guarantee, ask for the guarantee document back. How high the deposit could be in the first place is covered on the rental deposit page; the deposit calculator works out interest and instalments.