2024-07-10 20:01:25
Real Estate

BGH Decision: Landlords' Rights to Withhold Security Deposits Clarified

The recent BGH (Federal Court of Justice) decision has brought clarity to the circumstances under which landlords can withhold security deposits. Landlords are now allowed to retain the deposit for unpaid rent, operating costs, cosmetic repairs, and damages to the rental property, as long as the deposit is used for its intended purpose.

Notably, landlords have a 6-month window to claim compensation for damages. This ruling strengthens landlords' positions, enabling them to retain the security deposit even after the deadline has passed.

The decision has sparked mixed reactions, with property owners' associations welcoming it for facilitating damage claims, while tenant associations criticize it for potentially affecting tenants' rights.

The press radar on this topic:

Wirtschaft und Börsen-Nachrichten
10. Juli 2024 um 17:59

BGH Decision: When Landlords Can Withhold the Security Deposit

Landlords may withhold the security deposit due to unpaid rent, operating costs, cosmetic repairs, or damage to the rental property. The prerequisite is that the security deposit must be used for the intended purpose. Landlords have 6 months to demand compensation for damages. The BGH (Federal Court of Justice) ruling strengthens the position of landlords, who can also withhold the security deposit after the deadline has expired.
Spiegel Verbraucher & Service
10. Juli 2024 um 13:19

BGH: Landlord may withhold security deposit for expired damage claims - DER SPIEGEL

The Federal Court of Justice has ruled in a dispute over a rental deposit in favor of the landlord. The landlord can offset the deposit even for claims for damages that have actually already expired, as long as the claim could have been asserted beforehand. The regional court must now examine whether the landlord's alleged claims for damages actually exist.
10. Juli 2024 um 13:16

More rights for landlords: BGH strengthens landlords in the settlement of security deposits for damages - n-tv.de

The Federal Court of Justice (BGH) has strengthened the rights of landlords in a ruling on the settlement of rental damages with the security deposit. Accordingly, landlords may also offset time-barred claims for damage to the rental property with the security deposit, if the right of replacement existed before the expiration of the six-month statute of limitations. This makes it easier for landlords to assert claims for damages, even if the claim is formally time-barred.


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