How high should the deposit be when lending?

As a rule of thumb: 20 to 50 percent of the replacement value – high enough that careful handling is a given, but not so high that nobody rents. On Tavaa the deposit is held digitally through the app, no cash involved.

Do I need a written contract when lending privately?

With a platform booking, the period, price and both parties are already documented – that replaces the informal note. For very valuable items, a short handover record with photos and an accessory list is worth adding.

What do I do if something comes back damaged?

First compare the handover photos: was the damage there before? If not, talk to the renter directly – most cases can be settled fairly. The held deposit covers the rest. Document the damage with photos before using the item again.

Do I have to pay tax on lending income?

Income from occasionally renting out movable items counts as other income in Germany. Up to 256 euros per year it stays tax-free (exemption threshold) – if you exceed the threshold, the full amount must be declared in your tax return. When in doubt, ask a tax adviser.

Back to the blog

Guide

Lend safely: deposit, handover and clear rules

Published on July 21, 20266 min read

Friendly handshake between two people outdoors

Almost everyone knows the hesitation: a friend asks for the camera, the neighbour for the chainsaw – and your mind plays the film of a scratched lens. Understandable. But solvable. Get three things right and lending becomes relaxed: a deposit, a clean handover, clear agreements.

The deposit: your most important safety net

A deposit changes the psychology of borrowing. Someone who has 100 euros on the line carries your jigsaw differently down the stairwell. A good benchmark is 20 to 50 percent of the replacement value. On Tavaa the deposit is held digitally through the app – no cash, no counting, automatic release after return.

The handover: two minutes that prevent arguments

Most lending conflicts don't come from bad intent but from different memories. A short handover ritual creates facts:

Take photos from all sides – right at handover, with a timestamp.
Check the function together: switch it on once, let it run once.
List the accessories: batteries, charger, case, memory card.
Agree a concrete return time – date and hour, not "next week".

If something does happen

If an item comes back damaged: compare first, then talk. The handover photos show whether the damage is new. The vast majority of cases resolve in a direct conversation – and the deposit covers the rest. Ratings do the remaining work: people who treat borrowed things with care build a reputation that makes their next rental easier.

A quick word on tax

Income from occasionally renting out movable items counts as other income. Up to 256 euros a year it stays tax-free; above that, it belongs in your tax return. This is not tax advice – for larger sums, a quick call to a professional pays off.

Trust is good. A deposit, photos and clear agreements are better – for both sides.

With Tavaa, deposit, payment and booking history are cleanly handled from the start. You list your item, set price and deposit – the app does the rest. That turns the worry of lending into relaxed side income.

Frequently asked questions

How high should the deposit be when lending?: As a rule of thumb: 20 to 50 percent of the replacement value – high enough that careful handling is a given, but not so high that nobody rents. On Tavaa the deposit is held digitally through the app, no cash involved.
Do I need a written contract when lending privately?: With a platform booking, the period, price and both parties are already documented – that replaces the informal note. For very valuable items, a short handover record with photos and an accessory list is worth adding.
What do I do if something comes back damaged?: First compare the handover photos: was the damage there before? If not, talk to the renter directly – most cases can be settled fairly. The held deposit covers the rest. Document the damage with photos before using the item again.
Do I have to pay tax on lending income?: Income from occasionally renting out movable items counts as other income in Germany. Up to 256 euros per year it stays tax-free (exemption threshold) – if you exceed the threshold, the full amount must be declared in your tax return. When in doubt, ask a tax adviser.

Ready to get started?

Find things to rent nearby – or earn money from what sits unused at your place.