Why Your Rental Deposit Should Be Better Invested

Kautionsheld Team

The Problem with Traditional Rental Deposits

In Austria, rental deposits are often kept in savings accounts – frequently without interest. This practice means the deposit loses value over the years, not only remaining interest-free but actually losing purchasing power due to inflation.

Why Your Rental Deposit Should Be Better Invested

A rental deposit can – properly invested – not only meet the legal requirements but also create value. Opportunities for better utilization include:

  • Generating interest income: The legally required "fruitful" investment offers the chance for interest income.
  • Preserving liquidity: Tenants can use alternatives like bank guarantees or insurance instead of depositing cash.
  • Avoiding value loss: By investing the deposit in interest-bearing or inflation-protected investments, its purchasing power is preserved.

Alternatives to Traditional Rental Deposits

Traditional savings accounts are not the only option for investing a rental deposit. Here are some alternatives:

  • Bank guarantees: Providers like Rentpaca allow tenants to secure the deposit through a guarantee without large amounts.
  • Deposit insurance: This option offers tenants a cost-effective way to deposit the deposit without cash.
  • Risk-free funds: For landlords, risk-free funds could serve as an alternative, offering higher interest rates.

How Kautionsheld Can Help

With Kautionsheld, tenants and landlords can ensure that rental deposits are invested correctly and optimally. Our platform offers:

  • Legally sound requests to landlords for information about deposit investments.
  • Advice on alternatives like bank guarantees and deposit insurance.
  • Tools to efficiently and transparently handle deposit repayment.

Conclusion

Rental deposits do not have to remain unused and inefficient. With modern alternatives like bank guarantees and the support of platforms like Kautionsheld, both tenants and landlords can benefit. Don't let your money lie idle – discover better solutions now!

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