Do tenants have top pay the rental deposit in cash?

If you are renting, you will almost certainlybe obligated to pay a security deposit to your landlord once you move in. Arental "cash deposit," which may be up to three months of cold rent,is often applied. Is it really necessary to pay the rental deposit in cash?

Paying such a significant sum of money issometimes an inefficient use of your cash and a strain for many. This is 3monthly rent in cash, just sitting in some account – that´s a lot. You could domore with that money. Good news! Garentii, is a simpler and affordable alternativeto a traditional cash deposit that leaves money in renters’ pockets. Instead ofpaying expensive cash deposit, tenants pay a low fee starting at € 3,00 permonth. Get a quote.

Function, Amount, And Due Date Of The Deposit

Even though landlords are not required by lawto request a rental deposit, the majority of them do. The deposit's purpose isto safeguard landlords. Assume a renter is unable to pay the rent, has causeddamage to the flat, or owes ancillary charges.

The sum of the rental deposit is mandated bylegislation under Section 551 BGB. According to the Federal Code, the landlordmay charge the renter up to three months' worth of cold rent. Cold rent is rentthat has not been paid in advance for service charges. It's also important tonote that the legislation does not set a minimum deposit amount.

The good news is that tenants are notcompelled to pay the whole cash deposit in one go. Some options provide youwith greater freedom, such as Garentii deposit insurance.

What Are The Different Types Of Security Deposits?

A renter might transfer the deposit money tothe landlord in a variety of ways.

- The cash deposit is the mosttypical form of deposit. Cash deposits require the landlord to invest themindependently from their personal assets and to safeguard them from personalbankruptcy.

- You may start a savings book andgive it to the landlord, pledge it, or start a savings book with them. Ablocking letter assures that the landlord cannot remove the funds without thetenant's permission.

- A more flexible option is to getdeposit insurance, such as Garentii. Then, the tenant is not required toprovide a cash deposit to the landlord; rather, the renter provides a monthlyfee.

The landlord may also require a leaseguarantee, such as one from the tenant's family, as collateral. It is alsoacceptable to merge deposit payments with guarantees. The rental deposit andguarantee, however, cannot exceed the total of three months' worth of coldrents.

As rental prices rise, a growing number oftenants seek alternatives to paying a large cash deposit. Garentii is a better,easier method to rent without needing a cash deposit. Find out more.

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