Save and finance

Rental deposit savings book: A must for every landlord

Summary

The rental deposit savings book is mandatory for every landlord. For the duration of the tenancy, he can create the deposit here. In the meantime, the classic savings book is being replaced by overnight money offers in this segment as […]

The rental deposit savings book is mandatory for every landlord. For the duration of the tenancy, he can create the deposit here. In the meantime, the classic savings book is being replaced by overnight money offers in this segment as well.

Pledged rental deposit savings book as an alternative

Before moving into the new apartment, the tenant pays the landlord a deposit depending on the agreed monthly rent. In the past it was quite common to pay this amount in cash. In the meantime, the money is usually transferred.

The landlord is legally obliged to invest the deposit amount. The tenant can also create a rental deposit savings book and pledge it to the landlord. Either way, after the lease has ended, the tenant is entitled to repayment of the deposit plus interest income, provided that no payments for any damage or the like have to be deducted from it.

High interest rates are also in the landlord’s interests

The landlord also has an advantage from the increase in money: If he discovers major damage when moving out or if there is a dispute, a larger sum is available for cover than was originally paid in. The highest possible interest rate on the deposit amount during the tenancy is therefore also in the direct interest of the landlord.

In view of the fact that most savings account models have only yielded a below-average return (one percent or less) to this day, modern overnight money offers and forms of investment with two percent pa or more are becoming more and more important in this specific area as well.