Deposit for a holiday flat: permitted, and how much
Deposit for a holiday flat: permitted, and how much
For a holiday let you may agree a Kaution (security deposit). The § 551 BGB cap for residential tenancies does not apply, but the duty to justify deductions does.
Unlike long-term tenancies the amount is not capped. It must, however, be agreed before booking and settled promptly after the stay.
§ 551 BGB, German law of obligationsIn 60 seconds
The three-months cap in § 551 BGB applies to residential tenancies. It does not apply to tourist holiday lets.
The Kaution must be agreed before booking. Security demanded on arrival is not a valid agreement.
It is not a prepayment: it is not set against the price but repaid after the stay, to the extent no legitimate claims exist.
Every deduction must be itemised and evidenced. Withholding a lump sum without a breakdown is unenforceable.
The burden of proof is yours here too. A deduction requires you to evidence the damage and that it arose during the stay.
Legal framework
The cap limiting a rent security to three times the net cold rent applies to tenancies over residential space. It does not apply to short-term tourist accommodation. Independently, a security must be settled after the contract ends; withholding requires an itemised and evidenced claim.
Holiday let versus residential tenancy
| Residential (§ 551 BGB) | Holiday let |
|---|---|
| at most three months' net cold rent | no statutory ceiling |
| separate holding required | not required |
| deduction only if evidenced | deduction only if evidenced |
How Airbnb handles deposits is in Airbnb deposits and damage; how to evidence a deduction is in Proving damage in a holiday flat.
Common mistakes
It must be agreed before booking.
Every deduction must be itemised and evidenced.
With no outstanding claim, repay promptly.
What to do next
Agree and display the Kaution and its amount before booking. Do it with BildProof, about two minutes a room →
Settle promptly after the stay and send the breakdown with it.
Back every deduction with evidence and a condition record.
Frequently asked questions
How high may the deposit be?
There is no statutory ceiling for tourist holiday lets as there is for residential tenancies. Amounts from roughly one night's rate up to a few hundred euros are common. A figure bearing no relation to the value of the accommodation can be challengeable case by case.
Must I hold the deposit separately?
The duty to hold it separately under § 551 BGB applies to residential tenancies, not to short-term tourist accommodation. Clean accounting separation is still sensible, not least so you can evidence repayment.
When must I repay?
Promptly after the stay, once you have checked whether any claims exist. If you withhold something, send a breakdown with it: item, amount and evidence. Withholding without justification is unenforceable and routinely leads to claims back.
This page gives general information as at the date shown. It does not replace legal advice on an individual case.