Kaution settlement: a template for landlords
How to settle your tenant's Kaution (deposit) item by item, with proof for every deduction.
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
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
Kaution and interest
State the Kaution the tenant paid and the interest, as shown on the account statement.
- 3
Unpaid rent
List only the months that are really unpaid, each with its amount.
- 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
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
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.
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.
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
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