What deadlines apply to the return of the rental deposit?

In theory, tenants are entitled to the return of the deposit they paid from the moment the tenancy ends. In practice, however, this rarely happens immediately after moving out, because the law grants landlords a “review period” (Überlegensfrist). During this period they have time to examine any claims against the tenant and may withhold parts of the deposit in the meantime.

Such claims could include:

• The tenant is to repair damage or defects they caused
• Carrying out maintenance work (only if agreed in the tenancy agreement)
• Settling arrears in rent and/or service charges

The length of the “review period” is not uniformly regulated by law. In practice, however, 3–6 months has become the established norm and should give the landlord enough time.

Special case: service charge statement

The service charge statement is an exception: it is usually issued only once a year. If back payments arose in previous billing periods, the landlord may deduct part of the deposit and withhold it for up to one year to secure that amount. However, this only applies up to the amount of the expected back payment (Higher Regional Court (OLG) of Hamburg, case no. 4 U 36/87).

Once the landlord has had sufficient opportunity to examine any claims against the tenant (review period), only one item remains on the agenda: paying out the deposit plus interest. Here too, the law does not provide for uniform deadlines.

However, once 6 months have passed – or 12 months in the case of a service charge back payment – tenants should send a written reminder demanding their deposit. If they fail to do so, they risk the claim to the deposit becoming time-barred and losing their entitlement.

Tip: Incidentally, the deposit can also be paid out before you move out, since the form in which the deposit is provided makes no difference whatsoever. For example, a cash deposit that has already been paid can be replaced by a rental guarantee, provided the landlord agrees.

As a rule, the claim to the deposit becomes time-barred after 3 years. Claims should therefore be asserted before then, if only because doing so suspends the limitation period.

The limitation period begins in January of the year following the year in which the claim arose.

Example:

• Date of moving out of the old flat: 31/03/2019
• Landlord's reasonable review period ends: 30/09/2019
• Limitation period begins: 01/01/2020
• Limitation period ends: 01/01/2023

Note: It is not only the return of the deposit to the tenant that can become time-barred – the landlord's claims can also lapse after 6 months at the latest if they are not asserted in time (Federal Court of Justice (BGH), case no. VIII ZR 263/14)

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