Most landlords take a rent deposit from the tenants. This is intended to cover the costs of damage to the apartment caused by the tenants. The amount of the rent deposit is usually twice or three times the monthly net rent.
Not everyone can turn this money around on the table. Although the tenant gets back the deposit he has paid from the old apartment, it usually takes time or there are disputes about it. In any case, it is certain that the new tenant will ask for the rent deposit upon moving in.
How can this be financed?
There are several ways for the new tenant to pay the deposit. The landlords are obliged to accept payment in installments for the deposit. But more than two to three months are not planned for this. The tenant can also get a loan for the rent deposit from his bank. That would be, for example, the overdraft facility on the checking account, which can be used if it has not yet been used up to the limit.
It is worth using the overdraft facility if the deposit from the old apartment is expected shortly. A disposition is expensive, which is why it should only be used for a short time. A loan can also be taken out for the rental deposit. This has the advantage that the borrower can choose a term of twelve months. This keeps the monthly installments within limits and such a loan doesn’t cost much interest due to the short term.
What other options are there?
If you want to pay the rental deposit to the new landlord in a completely unbureaucratic manner, you can of course also ask your friends or relatives whether they provide a loan for the rental deposit. Friends or relatives shouldn’t take interest, so this would be the cheapest option. This idea should be taken up if there are negative entries in the Credit bureau and a loan for the rent deposit through a bank would not be considered anyway.