Ask Your Landlord Where Your Rental Deposit Is Held!

It’s vital that your landlord keeps your rental deposit separately from their personal assets. Otherwise, if your landlord goes bankrupt, you may lose your rental deposit.

In Germany, landlords are legally required to keep your rental deposit (Kaution) in a separate, interest-bearing account and not mix it with their personal funds.

As a tenant, you have the right to request written proof if your landlord is fulfilling this requirement. To do this, you must send a written notice in German to your landlord asking where your rental deposit is held.

You can use our tool to create a letter requesting confirmation of where your rental deposit (Kaution) is held.

You can download the letter in PDF format for free or send it directly by post with one click.
To ensure legal proof, we recommend sending it by registered post (Einschreiben).

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5_S Proof of rental deposit

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Disclaimer: Templates provided by LetterKrieg are for informational purposes only and have not been reviewed by a licensed attorney.

Users are solely responsible for verifying the suitability and accuracy of any document before use. LetterKrieg disclaims all liability arising from the use of its templates.

For legal advice, please consult a qualified attorney.

What is a rental deposit (Kaution)?

When you rent a home in Germany, your landlord can ask for a rental deposit (Kaution) as financial security. It covers unpaid rent, damages, or utility bills.

When do you pay the rental deposit (Kaution)?

Under Section 551 (2) of the German Civil Code (BGB), you have the right to pay the deposit in three monthly installments:

1st installment: Due when the tenancy begins
2nd installment: Paid with the second month’s rent
3rd installment: Paid with the third month’s rent

Example:
If your tenancy starts on September 1, your first payment is due that day, followed by payments in October and November. The actual move-in date does not affect when payments are due.

NOTE: The landlord is not obliged to inform you about your right to pay the rental deposit in installments. Make sure you know it!

What are your legal rights as a tenant?

The deposit must be stated in your rental contract. Otherwise, you do not have to pay it.
You are not required to pay the full rental deposit in advance. The landlord cannot terminate your contract just because you pay in installments. If the landlord refuses to hand over the property keys, you can cancel the contract without notice and even claim compensation.
You must pay the rental deposit on time. If you fail to do so, the landlord may terminate the contract without notice. However, he can only do this if the unpaid amount is at least worth two months of cold rent (§569 para. 2a BGB).
The landlord must invest your deposit in a credit institution earning interest. After the tenancy, he must return your rental deposit and the interest earned.
The landlord must keep your rental deposit separate from their personal assets to protect it in case of insolvency.
You have the right to request written proof of where your deposit is held. If the landlord refuses or does not respond, you may withhold rent up to the deposit amount. However, you must pay it once the landlord provides the proof.

Tip: Keep your payment receipts! You’ll need them if there’s ever a dispute about the deposit refund.

What can you do if the landlord doesn’t return your rental deposit (Kaution)?

Send a formal request letter: You can use our sample letter “request rental deposit back”. You must send the letter by registered post (Einschreiben). You can send the letter by registered post directly on LetterKrieg. No need to take printouts or go to the post office.
Get support from a tenant’s association (Mieterverein): Suppose the landlord doesn’t return the rental deposit after your formal request. In this case, you can get support from a tenants’ association. You must be a member of the association. If you are not, you can become one. The membership costs around €100/year (as of 2026). They have no waiting period and can help you resolve rental issues outside the court.
Consult a lawyer: Suppose you cannot settle the dispute out of court, you must bring it to court. Hire a tenancy lawyer. If you have a tenant’s legal insurance, it covers the legal costs.

References