In one sentence
There is no statutory period for the repayment of a rental deposit — which is why there is argument about the “reasonable” time for checking, and why it helps to know the other periods that actually limit the landlord’s room for manoeuvre.
Why nobody can name a fixed date
The BGB contains no period within which the deposit has to be repaid. What circulates in guidebooks as “up to six months for checking” comes from the case law, not from the statute: courts allow the landlord a reasonable time to check and to settle accounts. How long that is depends on the case — considerably shorter where handover was undisputed and no statement is outstanding, longer where there is significant damage.
What may be withheld — and what may not
The deposit secures claims arising from the tenancy: rent arrears, justified claims for damages, outstanding balancing payments. It is not a buffer for suppositions: if the landlord withholds something, he has to say what for — a blanket “still being checked” does not carry weight in the long run. Nothing may be deducted for normal wear and tear; whether damage goes beyond that is usually precisely the point in dispute.
Two clocks are running — and one runs against him
For claims for compensation for alterations to or deterioration of the rented property a short period applies: they become time-barred six months after the flat is handed back (§ 548 Abs. 1 BGB). That narrows the window considerably: anyone who withholds money after that “because of possible damage” is relying on claims he would mostly no longer be able to enforce.
Your own clock runs more slowly: the claim to repayment is normally time-barred three years from the end of the year in which it arose and in which you had knowledge of it (§§ 195, 199 BGB). There is therefore rarely any pressure of time.
Service charges: only a reasonable part
The most common reason for withholding money for a long time is an outstanding service charge statement. It has to be provided at the latest twelve months after the end of the accounting period (§ 556 Abs. 3 BGB). On the predominant view, however, only a reasonable partial amount may be withheld for it, based on the balancing payment expected — not the whole deposit. Anyone who holds on to three months’ basic rent because a few hundred euros are at stake will as a rule have no tenable ground for doing so.
What applied as early as the conclusion of the contract
Three points from § 551 BGB are worth looking back at in the tenancy agreement:
- Amount: for residential accommodation the deposit may amount to no more than three times the basic rent, that is the rent without the advance payment on service charges (Abs. 1).
- Instalments: it could be paid in three equal monthly instalments, the first at the start of the tenancy (Abs. 2).
- Investment and interest: the landlord has to invest the sum separately from his own assets; the proceeds are yours and increase the deposit (Abs. 3).
The last point is often forgotten: the interest belongs in the statement, and an investment that is not kept separate can give rise to claims of its own.
How it works in practice
If repayment fails to appear, the sequence is unspectacular but effective: first a written demand with a specific date, then a reminder. Once the landlord is in default, default interest arises (§§ 286, 288 BGB), and the costs of a law firm instructed thereafter can be recoverable. A deadline without a date (“promptly”) does not take you any further.
Where the software stops
A platform can evaluate the tenancy agreement and the handover record, calculate the interest as well and produce a matter-of-fact letter of demand with a solid deadline date. It cannot assess whether a scratch still counts as contractual wear and tear, and it does not conduct proceedings. Where damage is disputed, where no statement has appeared after the twelve-month period and where larger amounts are involved, the case belongs to be reviewed by a lawyer — we name our limits openly.
→ Reclaiming the deposit · Tenancy law at a glance · Calculate default interest · Asserting default interest
