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Housing and contracts

Kaution

Rental deposit

Last updated: September 28, 2026

What does Kaution mean?

The Kaution is the security deposit for a rented flat. By law it may not exceed three times the monthly net cold rent (Kaltmiete without service charges). You may pay it in three equal monthly instalments. The landlord must keep it separate from their own money, in an interest-bearing account, and the interest belongs to you.

Key facts

Maximum3 × net cold rent (§551 BGB)
Instalments3 equal monthly payments allowed
Where it must be keptSeparate interest-bearing account
InterestBelongs to the tenant

What to do

  • Check the amount: more than 3 months' net cold rent is not allowed.
  • Pay it to the landlord's deposit account, or in 3 instalments starting with the first rent.
  • Keep proof of payment and the handover protocol (Übergabeprotokoll) from move-in.
  • When you move out, the landlord may keep part of it for a while to cover the next utility statement.

Worth knowing

Never pay a deposit before viewing the flat and signing a contract: that is the most common rental scam in German cities.

Frequently asked questions

How much can a landlord ask as a Kaution in Germany?

At most three times the monthly net cold rent, without service charges. Any agreement for more is invalid for the excess.

Can I pay the Kaution in instalments?

Yes. The law allows three equal monthly instalments, the first due at the start of the tenancy and the others with the next two rents.

Read next

Sources

More German terms: housing and contracts

Plain-English explanations of the words on your letters and forms.