Before moving into a new rental apartment, most landlords require a rental deposit, the amount of which is legally limited to three net cold rents. The legal regulation regarding the deposit payment actually provides for the deposit in three installments. In practice, tenants often have no choice but to settle the entire deposit immediately, as many landlords only sign the lease step by step with the payment of the deposit.
With the exception of moving into your own apartment for the first time, the tenant is entitled to repayment of the deposit from the former tenancy. The old landlord can, however, take half a year for this, whereby he can double the time waiting for the service charge settlement to one year. For this reason, it is often necessary to finance the deposit.
The loan for the deposit is mostly a short-term loan
Tenants do not always have to take out a loan from the bank for the deposit, but can often use the overdraft facility on their checking account. This procedure is justifiable if the amount of rent for the new apartment has not changed excessively compared to the old one, since the account will be settled again after about six months by repaying the old rent deposit. However, applying for a bank loan offers a cheaper alternative, with the borrower ideally agreeing the right to a free special repayment.
In this way, he can use the reimbursement of the rent deposit of the previous apartment to repay the new deposit loan. If no deposit had to be paid for the old apartment, which is sometimes the case for older rental contracts, the tenant should take out the loan for the deposit of the new accommodation from a bank. Recipients of benefits under the Social Security Code can take out an interest-free loan for their deposit via the job center if this has been approved by the move.
Integrate the loan for the deposit into the moving loan
When moving house, there are numerous other expenses in addition to the cost of the new rental deposit. This includes the direct relocation costs as well as the purchase of new furniture and the renovation of the old and sometimes the new accommodation. If the tenant does not agree on installment payments with the moving company and in the furniture trade, he should take out a single loan for the deposit and for the further moving costs, especially since a higher loan amount can usually be financed more cheaply than several small loans.
A deposit insurance instead of a loan for the deposit?
Tenants no longer have to take out a loan for the deposit of the new rental apartment because the deposit insurance is available as an alternative. Insurance of this kind makes the financial situation of the apartment changer easier in the first period after moving in. In the long term, however, insurance is the worse option compared to paying a deposit, as the insurance premiums paid are not repaid in contrast to a deposited deposit.