Mietkaution

Mietkaution is a security deposit that a tenant provides to a landlord to secure claims arising from the tenancy, such as unpaid rent or damages beyond normal wear and tear. It is a standard element of tenancy in many German rental agreements and is regulated by the German Civil Code (BGB).

In general, the deposit may not exceed three months’ net cold rent (Kaltmiete). The Kaution is typically connected to the rent without utilities, and the exact amount is specified in the rental contract. Tenants can provide the deposit in cash, but it is also common to use alternatives such as a bank guarantee or a Mietkautionsversicherung (insurance-based guarantee) or a Bürgschaft from a third party. In many cases, the landlord agrees to the deposit being paid in installments.

The law encourages the deposit to be kept in an interest-bearing form. Landlords are expected to place the Kaution on a separate account (often a Kautionskonto) and to pay the interest to the tenant. The deposit remains the property of the tenant, and the landlord may only use it to cover legitimate claims from the tenancy, such as unpaid rent or damages, after the end of the lease.

Payment arrangements vary; while the full amount is frequently due at the start of the tenancy, many landlords accept installment payments if agreed in writing. Upon termination of the tenancy, the landlord must return the deposit promptly, minus any justified deductions for damages or outstanding payments, along with the accrued interest.