Have you finally found your dream apartment/house? – bright, spacious, and well located; and the only thing you have to do now is to sign the rental contract to secure the apartment. But, all apartment owners/landlords need some security that you will pay the rent and any damages you cause to the property. This security deposit is called Kaution in German. It should be usually paid to the owner while signing the contract (or before moving into the apartment, if the owner is understanding). Kaution can be as high as three times your cold rent (Kaltmiete). So, if your cold rent is 700 Euros, you may end up needing 2100 Euros for Kaution.
While moving into a new apartment, you may have various expenditures like buying new furniture and electronic items (Like a fridge, washing machine) and/or paying for a moving company, etc. At this point of time, you may not have enough money to pay the deposit in cash; or you may not be willing to pay so much money in cash upfront as you may need it for later use. An easy alternative to paying the money in cash is getting a Mietkautionsbürgschaft.
Mietkautionsbürgschaft is a security deposit guarantee (a.k.a. Security deposit insurance). The tenant has to pay a small yearly fee (around 3~6% of the deposit amount) to a trusted third party (guarantor) which in return gives the tenant a security deposit guarantee certificate. The guarantors are recognized private individuals, credit institutions or insurance companies. The tenant then gives the landlord this certificate instead of the cash deposit. This would mean that the landlord will now turn to the third party (and not to the tenant) in case of damage to the property for reimbursement.
At the end of your contract period two conditions can occur:
SEE ALSO: How to find an apartment in Germany?
The rent deposit guarantee is suitable for all tenants who want to keep the money for the rental deposit and want a safe and cashless alternative.
The rental deposit guarantee is the appropriate solution if:
Completing a security deposit guarantee is uncomplicated and will only take a few minutes. All you need is a computer or a smartphone with internet access. However, it is also possible to apply by post for most guarantors.
The following steps should be followed:
For those who already have paid their security deposit in cash, can also opt for a Mietkautionsbürgschaft and receive their security deposit back (talk to the landlord before applying for Mietkautionsbürgschaft).
How to search for a Mietkautionsbürgschaft?
You can use a Mietkautionsbürgschaft comparison site like Mietkautionsbuergschaft.de. Just enter your required security deposit amount and click “Jetzt vergleichen” to see offers from different guarantors.
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