What you should know about rented accommodation
A large number of people in Germany live to rent. The rental deposit, which is usually contractually regulated, also applies to the topic of renting a flats.
What is a rental deposit
? The rental deposit is paid by the tenant to the landlord, which in & sect; 551 BGB. The amount of the rent deposit may amount to a maximum of 3 net cold rent and serves to secure all claims of the real estate owner from the agreed tenancy. In the above paragraph, however, only the investment and interest payable by the landlord are regulated, but nothing is written about the rental deposit obligation. This is recorded separately in each lease. The rent deposit was until recently mostly in cash. For some time, however, tenants have also had the option of choosing a cashless alternative to the rental deposit. Such an option is offered by so-called rental deposit insurance. A rental deposit insurance is generally to be understood as a conventional insurance: with the rental deposit insurance contract, the rental deposit is secured by the landlord. For this service, the renter pays annually a certain contribution to the insurer, so that the rental deposit insurance is valid. Similar to household or personal liability insurance, the insurance premiums are not refunded after the insurance contract has been terminated.
Overview of other types of rental deposit
In principle, the tenant has various options to make a rental deposit. Mostly it depends on the financial situation of the tenant, for which form of the renting security he has decided. In addition, the landlord must accept the choice. There are various types of rent deposit models to choose from:
- The cash deposit: This form of rent deposit is still the most common in Germany. By the way, cash deposit is a cash transfer or the payment of the deposit deposit on a trust account, which is in the name of the renter.
- The bank guarantee: This type of rent deposit is also called Bankaval and is basically nothing but a guarantee from a specific bank , If during the tenancy the rent is not paid or any damage is caused in the apartment, the bank arrives as a guarantor and pays out the money for the damage to the landlord.
- Rental deposit guarantee or Mietaval: This model is also offered by the banks and is very similar to the banknote just described. In the case of a rental guarantee, the bank undertakes to pay the landlord the costs of the damage to him. Mietaval is actually similar to a loan and is handled by the banks as well: The tenant must transfer the money to the bank in case of damage. Helpful tips and useful information on this subject can be obtained from providers such as Deutsche Kagerskasse AG.
- Passbook or rental deposit account: A passbook or a rent deposit account is pledged for the purpose of securing a rental deposit and will be issued in the name of the renter. As a tenant, you can also deposit securities with pledged securities. However, this usually proves to be difficult because the securities have to be handed over for it, which is complicated by many banks.
- The rent guarantee: This is what is said when a guarantor takes over any rent arrears or costs for property damage from a tenancy agreement , Often it is practiced by the parents who vouch for their children.
Claiming the rent deposit and its reasons
The rent deposit is claimed for various reasons. That happens when, for example:
- the tenant has fallen behind with his rent or by-installments,
- if the tenant has caused by negligence or improper action in the apartment for damages that are associated with necessary and costly repairs.
- The deposit will then also
Benefits of a Rental Deposit Insurance or a Rental Deposit Guarantee
Rental Deposit Guarantees provide a viable alternative to cash deposit and are an optimal way to save your financial resources for other purposes. The advantages of a rental deposit guarantee are obvious:
- fast and unbureaucratic processing of the application
- without contract period and cancellable at any time
- the credit line will not be reduced
- no extra costs and waiting times
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