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4. Moving Out of an Apartment or Shared Flat – Security Deposit Refund and Tenant Rights

Moving Out of an Apartment or Shared Flat – Security Deposit Refund and Tenant Rights

Right to Reclaim the Security Deposit

When moving out of an apartment or when a flatmate leaves a shared flat, tenants naturally wonder when their security deposit will be refunded.
In principle, the deposit serves as financial security for the landlord — for example, in case of damages, unpaid rent, or pending utility costs. Once the tenancy is fully terminated and all obligations are met, the tenant is entitled to repayment.

However, the landlord is not required to refund it immediately upon key handover. They are entitled to a reasonable inspection period to review possible claims.

Time Frame for the Deposit Refund

German courts generally allow landlords a review period of three to six months after the tenancy ends. During this time, they may withhold all or part of the deposit to cover potential utility adjustments or repair costs.

Important: Only legitimate claims justify withholding. If the apartment is in proper condition and no rent is outstanding, the landlord must return the full deposit including interest.

After this period, tenants should formally request repayment in writing and set a deadline for transfer.

Deposit Refund in Shared Apartments (WGs)

In a shared flat, repayment depends on who is listed in the rental contract:

• If all roommates are joint tenants, the deposit can only be returned after the entire tenancy has ended. A single departing tenant has no direct claim.
• If there are individual lease agreements for each room, the departing tenant receives their share of the deposit upon moving out, provided no claims exist.
• In a sublease, the main tenant is responsible for refunding the deposit to the subtenant once the room is properly vacated.

To prevent disputes, every payment or refund should be documented in writing, ideally with a handover report and signed confirmation.

When the Landlord May Retain the Deposit

A landlord may keep part or all of the deposit if:

• Damages to the property are discovered,
• Rent arrears exist, or
• Utility bills are still pending.

A general or indefinite withholding “just in case” is not permitted. If no valid claims exist, the deposit must be repaid promptly. If the landlord refuses, tenants can pursue repayment through legal action.

Practical Tips for a Smooth Deposit Refund

1. Return the apartment properly: Hand over all keys and sign a handover protocol.
2. Document the condition: Take photos or videos to serve as evidence.
3. Provide your forwarding address: So the landlord can send the refund.
4. Set a written deadline: Ask for repayment after three to six months.
5. Check accrued interest: The landlord must pay out the deposit including earned interest.

Good communication, documentation, and patience ensure a smooth and fair refund process.