Kaution settlement: a template for landlords

How to settle your tenant's Kaution (deposit) item by item, with proof for every deduction.

BildProof RedaktionUpdated 10/1/20263 min readGermany
In short

Settle the Kaution in writing: the Kaution plus interest, minus each deduction you can prove, is what you pay out. List each item of damage on its own, with the room, a photo and the amount at current value.

How to fill in the template

The more precise each item is, the fewer questions and objections you get from the tenant.

  1. 1

    Which flat and which tenant

    Give the address of the flat, the tenant's name, the date the flat was returned and the date of the Übergabeprotokoll (handover record).

  2. 2

    Kaution and interest

    State the Kaution the tenant paid and the interest, as shown on the account statement.

  3. 3

    Unpaid rent

    List only the months that are really unpaid, each with its amount.

  4. 4

    Each item of damage

    For each item, give a description, the room, the photo and the Übergabeprotokoll entry, the current value, and the invoice or quote.

  5. 5

    Money held back for Nebenkosten

    State the amount you hold back for Nebenkosten (service charges) and the reason, such as an extra payment the tenant owed last year.

  6. 6

    The payout

    State the final amount, the date you will transfer it and the tenant's account.

Template: Kaution settlement

Fill in the gaps and delete what does not apply. Send the settlement in a way that lets you prove it arrived. The template is in English. Send the German version to a German-speaking tenant.

Template
Your name
Your address

To: ________ (tenant's name and address)

Place, date: ________

Subject: Settlement of the rental deposit (Kaution)
Flat: ________ (address, floor), returned on ________

Dear ________,

Following the return of the flat, I settle the Kaution as follows:

A. Kaution
Deposit paid: ________ €
Interest up to ________ (per the attached account statement): ________ €
Total: ________ €

B. Deductions

1. Unpaid rent for ________ (month): ________ €

2. Damage: ________ (description)
Room and location: ________
Evidence: photo no. ________, Übergabeprotokoll of ________, item ________
Condition at move-in: ________ (e.g. no finding in the Einzugsprotokoll of ________)
Cost: ________ € as per invoice / quote of ________, of which current value: ________ € (age ________ years)

3. Damage: ________ (description)
Room and location: ________
Evidence: ________
Condition at move-in: ________
Cost: ________ €, of which current value: ________ €

4. Amount held back for the Nebenkostenabrechnung ________ (year): ________ €
Reason: ________ (e.g. extra payment of ________ € owed last year, higher heating costs)
I will settle this amount with the Nebenkostenabrechnung, no later than ________.

Total deductions: ________ €

C. Payout
Total A minus total B: ________ €
I will transfer this amount on ________ to your account:
Account holder: ________
IBAN: ________

The evidence for each item is attached. If you have questions about any item, please get in touch by ________.

Kind regards

________ (signature)

Attachments:
Statement of the deposit account
Einzugsprotokoll of ________ and Übergabeprotokoll of ________
Photos or condition report from move-in and move-out
Invoices or quotes for items ________

This is a general template, not legal advice. Adapt it to your case. For large amounts, a landlords' association (Haus und Grund) or a lawyer can help.

Why this matters

A settlement that shows the room, the proof and the amount for every item gives the tenant little reason to object. The tenant will check it item by item, just as our objection letter template for tenants tells them to.

General information, not legal advice.

Frequently asked questions

Does the Kaution settlement have to be in writing?

The law does not require a particular form for a Kaution settlement. But if you settle in writing and item by item, you can prove every deduction and prove that the settlement arrived.

How long do I have to settle the Kaution?

The law sets no fixed deadline for the Kaution settlement. Courts usually allow three to six months after the tenant returns the flat. But claims for damage already expire six months after the flat is returned (§ 548 Abs. 1 BGB).

Can I deduct the price of a new item if I have to replace something?

No, you can only deduct the current value of the damaged item. The older the item was, the less you can claim.

More on this

Also in this topic: Eigenbedarfskündigung: how to justify itLandlord termination of a tenancy in Germany (2026, § 573 BGB)Tenant has died: lease, heirs and handoverRäumungsklage for rent arrears: the steps in order

Is your tenant moving out soon?

Walk through every room when the tenant returns the flat and record each finding. BildProof guides you through the flat and creates a structured condition report you can compare with move-in.

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