Before moving into a new apartment, tenants must regularly pay a rental deposit. Although you will receive the security deposit for your previous accommodation, this reimbursement usually takes six months, so that the new deposit must first be paid out.
In view of the high moving costs, only a few households have enough cash for a deposit, so that borrowing is essential for rent security. According to the law, the rental deposit can be paid in three monthly installments, but in practice the rental contract is often only signed by the landlord if the new resident agrees to pay the full deposit immediately.
The deposit insurance is not an alternative
Insurance companies advertise massively with the possibility to waive a loan for the rental deposit and instead take out a so-called deposit insurance. This procedure is useful for a planned rental of an apartment for a few years. If you want to stay in an apartment for a long time, you pay an excessive amount for the deposit insurance, as the annual premium is due for the entire duration of the tenancy.
In addition, the surety insurance does not provide any security for the tenant. Should the landlord make claims to the former tenant after the later move out, the former tenant must reimburse the insurance company in addition to the insurance premiums already paid.
Short terms are useful
In the case of a loan for the rental deposit, short terms or the right to free early loan repayment are advisable. In this way, the recipient of a new apartment can repay the loan for the security deposit as soon as he has received the security back from the previous apartment.
Alternatively, longer terms can be agreed for the loan for the rental deposit, so that the borrower uses the reimbursement of the old rental security to purchase parts of the home furnishings that are not necessarily immediately required, such as chic carpets or pictures. Even if the loan for the rent deposit is not very high, it is worth comparing the loans to find an inexpensive offer.
Can the overdraft facility be used for the rental deposit?
Especially when renting a one-room apartment or a two-room apartment, the deposit is not excessively high, especially since the amount is legally limited to two net cold rents. In this case, the use of the overdraft facility for the rental deposit due to the probable account settlement after the repayment of the old rental security is reasonable in about six months, provided that the available amount does not have to be used for further moving costs.
However, applying for a call credit is cheaper. In this case, there is on the one hand the obligation to make a monthly minimum repayment, and on the other hand the lender may repay the loan amount in full at any time.