Ways to pay apartment rental security (Kaution) - Munich

Hi Toytowners.

We have left this a bit late, but we are going to sign a contract tomorrow for an apartment and we have overlooked a few details.

The landlord has asked us to bring cash for the deposit, which is over 2000 euro - obviously, this concerned me a little. Is this money legally secure with a standard 'receipt' or 'quittung'? Is it safer to transfer to a bank account?

Are there any legally binding methods that landlords should follow? For example, we heard about a separate bank account that both the tenant and landlord have access to.

Before we sign a contract, can anyone give us some tips on general things to look out for. My girlfriend is german so we should be able to read the contract.

Much appreciated, cheers.

you defiantly must get something without fail that he signs (usually) on your contract that says you have payed the caution in full. This is quite normal. Wether it is legal or not is another question. He has to give you interest on your caution over the period of which he holds on to it. actually getting that is a harder thing to do.

The fairest way to deal with the Kaution is to put it in a savings book. This is held in the tenants name, the landlord looks after the book. The cash can only be withdrawn when both parties sign at the end of the tenancy so landlord and tenant have to agree any deductions before either get the cash. This is called a Bankburgschaft. As it is a savings account it collects interest and the tenant will recieve this.

Ask your landlord if they are happy to deal with the Kaution this way. If they insist on cash be suspicious, it may hard to get it back when you leave. If the landlord agrees you need to go to your bank to set it up and then take the savings book and the paperwork for both parties to sign to your landlord. Both tenant and landlord should have a copy of the signed Bankburgschaft agreement.

yeah I tried to do this with my last landlord. Or I should say the landlord and I tried to do this. The bank wanted to charge me a very high fee for the privilege, would let me do it in my current account ie I had to open a new savings account and they wanted to give me a interest rate of .5 percent.

Exactly, if you pay cash then get a receipt.If you get a bankburgerschaft the bank puts the money in an account and charges you interest for it.Also make sure that there is something that is in the apartment that is worth it.If you are paying Kaution of say € 3500 and there is only a good bathroom there that would cost € 2000 to replace then you are more than likely going to get shafted when you move.

You as tenant receive interest for the deposit on a Bankbürgschaft as it is your money.
The amount of a deposit does not depend on the state or furnishing of the rented property, it is a set amount of - generally - three months' rent without auxiliary costs (heating, water, janitor etc.).
Being of the legal persuasion I would never EVER hand over cash unless you and your landlord mosey on down to the next bank together and deposit that cash in a savings account as described above. The landlord must keep your deposit separate from his other assets.
If you have time, rush to your bank and ask them to set up a Bankbürgschaft, taking the lease along for details. Then show it to the landlord and ask if he will accept it. If not, insist on the savings account.

I seem to remember the cost to us with DB was just the painfully low rate of interest. The advantage is that all access is controlled via the bank and the landlord can't casually dip their finger in.

very true.

A minor point - don't forget that this interest, like all other, is subject to income tax here.