Security Deposits in Lower Saxony: Regulations for Landlords
Learn all about rental security deposits in Lower Saxony: legal maximum limits, installment payments, investment obligations, and deadlines for repayment.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
The regulations regarding the rental security deposit (Mietsicherheit) are based on the national provisions of the German Civil Code (BGB).
Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.
Permissible Deposit Amount
Landlords may demand a maximum deposit of three months' rent, excluding operating costs (cold rent).
Payment Modalities
If a sum of money is provided as security, the tenant is entitled to pay it in three equal monthly installments. The first installment is due at the beginning of the tenancy. Subsequent installments are due together with the immediately following rent payments.
Obligation for Insolvency-Proof Investment
The landlord must invest a sum of money provided as security with a credit institution at the usual interest rate for savings deposits with a three-month notice period. The contracting parties may agree on a different form of investment. In both cases, the investment must be kept separate from the landlord's assets, and the earnings belong to the tenant, increasing the security. For residential space in a student or youth dormitory, the landlord is not obliged to pay interest on the security. Any agreement deviating to the disadvantage of the tenant is ineffective.
Retention and Offsetting
The security deposit serves as security for the fulfillment of the tenant's duties.
Statute of Limitations for Claims
The landlord's claims for compensation due to changes or deterioration of the rented property become statute-barred in six months. The limitation period begins when the landlord receives the rented property back. With the limitation period of the landlord's claim for the return of the rented property, his claims for compensation also become statute-barred.
Deadlines for Repayment
The BGB does not specify an exact deadline for the repayment of the deposit after moving out.
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