Rental deposits are essential as security in the context of a rental, and yet are often only a necessary evil. Currently (as of June 2022), more than 30 billion euros are stored as cash deposits in bank accounts in Germany and are thus denied to the real economy. For landlords and property managers, deposit administration and deposit management are usually still associated with a high manual workload. For tenants, on the other hand, deposits often mean dead capital in the low-interest area.

However, there are now other and much more efficient methods of depositing a security deposit besides paying it in cash. In addition to the option of transferring the deposit to a landlord’s account, the option of creating a deposit account is becoming increasingly attractive. Here, the sum of the deposit is invested in various funds so that, ideally, the tenant even benefits in the end.

Providers offer solutions in which the entire deposit management process is digitized. All associated processes are bundled online and can thus be viewed by landlords and tenants at any time. Since even the smallest landlords can be relieved by these solutions, the solutions show their decisive benefits particularly clearly for large landlords or investors with often thousands of deposits to manage.

Landlords also benefit from the fact that these solutions are often cheaper than conventional offerings, as there are no account management fees and no interest charges. Some of the solutions even allow networking with the local ERP system, which avoids duplication of work. In addition, the rental collateral is immediately available and the tenant verification process is accordingly efficient and requires little administrative effort.