Understanding Kaution: A Guide to Security Deposits in Germany

In Germany, an apartment deposit, also known as a Kaution, is a sum of money that is paid by a tenant to the landlord or property owner as a security deposit. The Kaution is intended to cover any damages that may be caused to the apartment or property during the tenancy, and is typically equal to three months’ rent.

How to pay your Kaution

When a tenant signs a lease for an apartment in Germany, they are usually required to pay the Kaution in advance by bank transfer. The Kaution is can also be paid in the form of a bank guarantee, which is a document issued by a bank that guarantees the payment of the Kaution. Most banks like DKB, Commerzbank, or your local Sparkasse, etc. will offer this service. The bank guarantee is typically held by the landlord or property owner until the end of the tenancy, at which point it is returned to the tenant.

What is a Kaution for?

It is important to note that the Kaution is not intended to cover normal wear and tear on the apartment or property. It is only intended to cover damages that are caused by the tenant or by other individuals who are under the tenant’s responsibility, such as guests or family members.

Getting back your Kaution

At the end of the tenancy, the landlord, or property owner is required to return the Kaution to the tenant, minus any deductions for damages that have been caused to the apartment or property. If the tenant disputes the deductions made by the landlord or property owner, they have the right to appeal the decision in court.

Conclusion

In conclusion, the apartment deposit, or Kaution, in Germany is a sum of money that is paid by a tenant to the landlord or property owner as a security deposit. The Kaution is intended to cover any damages that may be caused to the apartment or property during the tenancy, and is typically equal to three months’ rent. It is paid by bank transfer or in the form of a bank guarantee and is returned to the tenant at the end of the tenancy, minus any deductions for damages. Tenants have the right to appeal any deductions made by the landlord or property owner in court.