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Category

Economy

Article by

Waitly

April 17, 2026

What Landlords Can Deduct From Your Deposit in Germany

After moving out, most tenants ask the same question: can the landlord withhold the deposit, and if so, for what? The answer comes down to a clear legal distinction between which costs are permitted and which aren't.

What the deposit can be withheld for

A landlord may generally withhold the deposit for three types of claims:

  • Damage to the rental property beyond normal wear and tear

  • Outstanding rent payments or unpaid Nebenkosten top-ups

  • Other open, contractually valid claims arising from the tenancy

Normal, age-related wear, such as faded wallpaper or a slightly worn carpet after years of use, doesn't count. Under German tenancy law, those signs of use are already covered by the ongoing rent.

Cosmetic repairs: stricter rules since 2015

For a long time, many rental contracts included clauses obliging tenants to repaint on a fixed schedule at move-out, regardless of the apartment's actual condition. The Federal Court of Justice (BGH) declared these rigid quota-based clauses (Quotenabgeltungsklauseln) invalid in a ruling on 18 March 2015 (case nos. VIII ZR 242/13 and VIII ZR 185/14, covered in detail by legal news outlet LTO), because they force tenants to accept an unverifiable, hypothetical cost estimate at the time of signing. If your contract contains such an invalid clause, the landlord can't deduct anything for it from the deposit, even if some wear is genuinely present.

How high can the deposit even be?

Before anything can be withheld, the deposit must have been agreed lawfully in the first place. Under Section 551 of the German Civil Code (BGB), it can be no more than three times the monthly net Kaltmiete, excluding any Nebenkosten flat rate or advance payment. A deposit agreed above that cap is invalid for the excess amount, regardless of what the contract says.

What to do about an unlawful deduction

If you suspect the landlord is withholding too much, or without justification, start by requesting a detailed, written breakdown of the deducted items with supporting documents. If the landlord can't provide a plausible justification, or relies on an invalid contract clause, getting advice from your local Deutscher Mieterbund branch before pursuing the amount in court is usually the next step. For how long the landlord can hold the deposit while the Nebenkosten statement is still pending, see our deposit hold duration guide, and for what may be charged beyond the deposit itself, our post-move-out charges guide.

Conclusion

A landlord may only withhold the deposit for concrete damage beyond normal wear, outstanding payments, or validly agreed claims, never as a flat deduction or based on an invalid cosmetic-repair clause. Checking your own deposit statement against these three categories quickly shows whether a deduction is justified.

Frequently Asked Questions

Can a landlord withhold the entire deposit?

Only if the sum of legitimate claims, such as damage, unpaid rent, or Nebenkosten, reaches the full deposit amount. A flat, unitemized full withholding isn't permitted.

What's the maximum deposit a landlord can require?

Under Section 551 BGB, no more than three times the monthly net Kaltmiete, excluding any Nebenkosten share.

Can a landlord deduct for normal wear and tear?

No. Signs of aging and use from normal, ordinary use are already covered by the ongoing rent.

Are cosmetic-repair clauses with a fixed schedule still valid?

No. The BGH declared such rigid clauses invalid in 2015 (case nos. VIII ZR 242/13 and VIII ZR 185/14).

What can I do if the landlord withholds the deposit unlawfully?

Request a written, documented breakdown of the deductions, and contact your local tenants' association if anything remains unclear before taking legal steps.

If the deposit has already been withheld, see also how to legally enforce an unpaid deposit claim if it comes to that and how long a Nebenkosten-related withholding may last at most.