The Security Deposit Confirmation Letter is a crucial document in German property rental transactions, required whenever a security deposit (Kaution) is provided by a tenant to a landlord. This document, mandated by German tenancy law, particularly BGB § 551, serves as official confirmation of the deposit receipt and its proper handling. The letter must be issued promptly after the security deposit is received and should detail the deposit amount (which cannot exceed three months' rent), the separate bank account information where it is held, and confirmation that it is in an interest-bearing account as required by law. It's particularly important as it provides documentary evidence of compliance with German legal requirements regarding security deposit management and protects both landlord and tenant interests.
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1. Letter Header: Date, recipient details, property address, and reference numbers
2. Subject Line: Clear identification as Security Deposit Confirmation Letter (Kautionsbestätigung) and reference to the related rental agreement
3. Deposit Amount Confirmation: Explicit confirmation of the security deposit amount received, date of receipt, and form of payment
4. Bank Account Details: Information about the separate bank account where the deposit is held (as required by German law)
5. Interest Bearing Confirmation: Statement confirming the deposit is held in an interest-bearing account as per BGB § 551
6. Return Conditions: Brief statement of conditions under which the deposit will be returned
7. Signatures: Space for landlord/property manager signature and date
1. Property Management Authorization: Required only when a property management company is handling the deposit on behalf of the landlord
2. Multiple Tenant Declaration: Required when multiple tenants have contributed to the deposit, specifying their respective shares
3. Special Arrangements: Include only if there are specific arrangements regarding installment payments or special conditions approved for the deposit
4. Digital Banking Details: Include when online banking or digital payment methods are used for future transactions
1. Copy of Bank Statement: Proof of deposit in separate bank account (optional but recommended)
2. Payment Receipt: Copy of the original payment receipt or transfer confirmation
3. Authorization Documents: Required only when property management company is involved, showing their authority to handle the deposit
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