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Paying the rental deposit in instalments: your good right

When moving in, a lot comes together, and the deposit in one go can blow the budget. Good to know: you do not have to pay it in one sum. The law gives you the right to raise it in instalments.

Reach your next steps and the matching ready-made texts in just a few minutes, free of charge:

Clarify the question

Your chances of getting your money back

You may pay the rental deposit in three equal monthly instalments (§ 551 para. 2 BGB). The first instalment is due at the start of the tenancy, the others with the two following rents. The landlord cannot demand the full amount at once.
The deposit may amount to at most three months' net cold rent. A contract clause demanding immediate payment of the entire deposit is invalid to that extent.

What you should do now

  1. 1

    1. Check the amount

    Is the deposit at most three months' net cold rent? More is not permitted.

  2. 2

    2. Use instalment payment

    Pay in three equal monthly instalments, the first at the start of the tenancy.

  3. 3

    3. Point out the clause

    If the landlord demands the full amount at once, point to § 551 BGB.

  4. 4

    4. Investment/interest

    Make sure the landlord invests the deposit separately and with interest.

Frequently asked questions

Do I have to pay the rental deposit all at once?

No. You have the right to pay the deposit in three equal monthly instalments (§ 551 para. 2 BGB). The first instalment is due at the start of the tenancy, the two others each with the following monthly rents. A clause demanding immediate payment of the entire deposit is invalid to that extent.

How high may the rental deposit be?

At most three months' net cold rent (that is, excluding operating costs). A deposit going beyond that is not permitted. In addition, the landlord must invest the cash deposit separately from his own assets and with interest; the interest belongs to you. When you move out, you get the deposit back together with interest, minus justified claims.

Take action now

We put together the ready-made texts and the right places to contact for you.

General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.