Accommodation Germany

Long-term Rental

 

Finding accommodation

Online Platforms: The most popular sites for finding rental housing in Germany include ImmobilienScout24, Immonet, Immowelt, ebaykleinanzeigen. These platforms offer a variety of apartments and houses in different regions of Germany. WG-Gesucht: Ideal for finding rooms in shared rentals.

Local Newspapers and Bulletin Boards: Some property owners prefer traditional advertising methods, such as local newspapers and bulletin boards in supermarkets and community centers.

 

Application Process

When viewing properties, be prepared to provide all necessary documents. Prepare a letter to the landlord with a brief description of yourself, your income, and reasons for renting. This will help you stand out among other applicants.

Pay a deposit, which usually amounts to two to three months' rent, excluding utilities. This deposit is refunded at the end of the rental period if the property is not damaged.

 

Short-term Rental

 

Online Platforms: Booking, Airbnb, Homelike, Housing Anywhere, Wunderflats, Spotahome; these platforms specialize in short-term rentals and provide the possibility of local registration, which is important for meeting legal obligations in Germany.

 

Features of short-term rental

Renting furnished apartments can be more expensive, but it includes basic amenities and internet. This is convenient for temporary housing until you find a permanent residence.

Make sure you can register at the address of the temporary housing, as this is necessary for obtaining other important documents, such as a tax identification number and opening a bank account.

 

Moving and registration

After receiving the keys, conduct an inspection of the property with the landlord and draft a condition report. This will protect you from any claims regarding damages that existed before your move-in.

A rental or purchase agreement for housing provides legal protection for both parties and details the rights and obligations related to the use and ownership of the property.

 

In Germany, a rental or purchase agreement for housing is also an important document necessary for carrying out various administrative procedures.

Registration of residence: All residents in Germany are required to register at the local registration office (Bürgeramt) within 14 days of moving.

Opening a bank account: Proof of residence is often required to open an account in a German bank.

Insurance registration: When registering with the German health insurance system, insurers may require proof of residence.

Obtaining a residence permit or visa: To apply for a visa or residence permit in Germany (e.g., student, work, family visa), you need to prove you have housing.

Vehicle registration: When purchasing or registering a car, you must indicate your residence.

Getting a tax identification number (Steuer-ID): The tax number is automatically issued after you register your residence. It is necessary for employment, opening a bank account, or filing tax returns.

Enrolling children in kindergarten or school: To enroll a child in an educational institution, you need to provide the address of residence to choose the nearest facility.

Applying for social benefits: Applying for social assistance requires proof of rental or ownership.

Concluding contracts with utility companies: To connect to the internet, electricity, gas, and water, a contract confirming the right to use the housing may be required.

Employment or educational contracts: When getting a job or enrolling in an educational institution, proof of residence in Germany may sometimes be required.

Receiving tax benefits or subsidies: Some tax benefits, such as those related to housing expenses, require proof of rent amount.

A rental or purchase agreement for housing is a key document for integration into the administrative system of Germany. It is recommended to always keep the original agreement and copies, as it may be needed in various situations.

Renting housing in Germany requires careful study of conditions and compliance with all legal formalities. This will help you avoid unpleasant surprises and ensure comfortable living in a new country.

 

Types of rent

Kaltmiete (cold rent): This is the base rent that does not include utility costs. It only covers the cost of renting the property.

Warmmiete (warm rent): Includes Kaltmiete plus additional costs such as heating, water, garbage collection, and building maintenance.

 

Rental agreement

Rental agreement: The rental agreement is a legally binding document that governs all rental conditions. It includes:

Term of rental: It can be either fixed-term or indefinite.

Deposit: Typically amounts to up to three months of cold rent and serves to cover potential damages or unpaid rent.

Maintenance and repairs: The agreement may contain terms about minor repairs, which may be the tenant's responsibility. Major repairs and maintenance of common utilities are usually the landlord's responsibility.

Pets: The agreement specifies pet regulations. Some landlords may prohibit pets, while others require additional agreements.

Sublease: If you plan to sublet part of the accommodation, this should be specified in the contract and agreed upon with the landlord.

 

Documents for rental

- Passport or ID card.

- Proof of income: Last three months of payslips or work contract.

- Credit report (SCHUFA): This is a document confirming your financial reliability. It can be requested online at (https://www.meineschufa.de). (Providing this document is desirable and an advantage, but it can only be obtained by those who already have a certain financial history in Germany; newcomers can manage without SCHUFA if the landlord agrees to it).

- Reference from the previous landlord (if available): Confirmation of no rent arrears.

 

In addition to rent, there may be other mandatory expenses

Utilities: Electricity, gas, internet, which are paid separately.

Garbage collection and property maintenance fees.

Television license fee: Mandatory fee for the use of public television and radio, amounting to about 18.36 euros per month. It must be paid even if there is no television in the apartment.

 

Availability of furniture and appliances

Most rental offers in Germany pertain to unfurnished apartments. This means that the accommodation is provided without furniture and often even without a kitchen. Tenants typically purchase kitchen units, furniture, and appliances themselves, and are responsible for their installation and maintenance. Important: All furniture and equipment installed by you must be removed, right down to the light fixtures, before moving out of the apartment (it may be possible to agree with the landlord and next tenant that they purchase the furniture from you and leave it in the apartment). Also, when leaving the apartment, it must be returned to the same condition as when you moved in (paint the walls, do a deep clean).

 

Furnished apartments

Furnished apartments, although less common, are also available on the rental market. Such offers are often geared towards short-term rentals, which can be convenient for students, expats, and people on business trips.

 

General aspects of renting housing

Kitchens: In some cases, even in unfurnished apartments, a kitchen may be installed by the landlord. However, this is not always guaranteed, and tenants may need to install their own kitchen.

Appliances: In most cases, tenants need to purchase their own appliances (fridge, washing machine, etc.).

The process of purchasing real estate in Germany can be quite complex, especially for foreign citizens.

 

Assessment of financial capabilities: Start by assessing your financial capabilities. Include in the calculation all additional costs, such as property acquisition tax, notarial and registration fees, and agency commissions. Total additional costs can range from 5% to 16% of the property's cost.

 

Searching for real estate

Online platforms and real estate agents: Use online platforms such as ImmobilienScout24, Immonet, and Immowelt to find real estate. Realtors can greatly simplify the search and negotiation process, but their services can cost up to 7% of the property's value plus VAT.

 

Additional tips

Investments in repairs and evaluation of the property's condition: When buying an older property, it is recommended to evaluate its condition and consider possible repair costs. These costs can be deducted from the taxable base when renting out the property.

Choice of region: Different regions of Germany offer various investment opportunities. In major cities like Berlin, Munich, and Frankfurt, property prices are stable and high, whereas in emerging cities like Leipzig and Nuremberg, more affordable options with high growth potential can be found.

In Germany, property insurance is not legally mandatory but is highly recommended.

Who needs insurance

All property owners are highly recommended to have at least basic building insurance: covers damage to the structural parts of the building, such as walls, roof, floors, and external elements, such as garages or garden structures; the policy protects against risks such as fire, flooding, storms, and other natural disasters.

For tenants, it's important to have home property insurance: it covers losses or damages to personal property inside the home, including furniture, electronics, clothing, and other valuables; the policy protects against risks such as theft, fire, water, and vandalism.

Where to obtain: Insurance policies can be purchased from various insurance companies, such as AXA, Allianz, and others. Online platforms may also be used to compare and choose the best offer.

Electricity

Choosing a provider: The electricity market in Germany is liberalized, allowing you to choose a provider at your discretion. Popular providers include E Wie Einfach, Yello, and Ostrom. Websites such as PREISVERGLEICH.de are convenient for comparing rates.

Bill payment: Electricity bills usually arrive monthly or every two months. In the first year, estimated bills are often issued based on expected consumption, with adjustments made later based on actual meter readings. Payment can be made automatically via bank transfer or through mobile banking applications.

 

Gas and Heating

Choosing a provider: Consumers can choose from many suppliers, including environmentally friendly gas options.

Installation and connection: In the case of new housing, it's important to ensure that the house already has a gas connection. If not, installation can be costly. Gas suppliers can also be chosen based on rate comparisons, for example, through Verivox.

 

Water

Cost of water: Water prices in Germany vary significantly depending on the region. For example, in Stuttgart, it can reach 4.70 euros per cubic meter, while in Berlin, it is about 2.80 euros per cubic meter. These costs are usually included in the additional payments in rental agreements.

Water quality: Tap water in Germany is safe to drink, and its quality is strictly monitored. This allows saving on bottled water purchases, as tap water is suitable for drinking, cooking, and other needs.

 

Additional expenses and management

Additional expenses: Utility bills also include waste disposal and sewage costs. Sewage expenses usually amount to about 2.50 euros per cubic meter.

 

Using online platforms for comparing rates and being aware of consumer habits can help save significantly on utility bill payments.

Living in apartment buildings in Germany involves adhering to a range of rules and norms aimed at maintaining order and comfort for all residents. Here are the main aspects to consider:

Noise and quiet hours

Quiet hours: Most buildings have strict rules regarding quiet hours, usually from 10:00 PM to 6:00 AM and all day on Sunday. During this time, loud music, drilling walls, and other noisy activities are prohibited.

Noise from pets: If you keep pets, ensure that they do not disturb the neighbors.

Cleaning and maintenance of common areas

Residents' responsibilities: Residents are often responsible for cleaning staircases, corridors, and other common spaces according to a schedule set by the landlord or management company.

Garbage disposal: The waste disposal system in Germany involves sorting waste into categories: paper, plastic, bio-waste, and general waste. Violating sorting rules may lead to fines.

Use of shared facilities

Parking spaces: Parking on the premises may be limited, and each resident may be allocated a specific spot. Incorrect parking can result in fines or towing.

Storage of items: Bicycles, strollers, and other large items should be stored in designated areas and must not block corridors or exits.

Tenants' rights and responsibilities

Rent payment: Tenants are required to pay rent and utilities on time. Delays may lead to fines or even eviction.

Repairs and modifications: Any significant changes to the apartment (such as installing a new kitchen or knocking down walls) require the landlord's approval. Unauthorized modifications may lead to the termination of the lease agreement.

Privacy Rights: Homeowners do not have the right to enter your apartment without prior notice, except in emergency situations. This right is protected by law, and any violations can be contested.

Pets

Permission to keep: In some homes, special permission may be required to keep pets. Make sure your lease agreement allows for pets to avoid conflicts.

Stable demand and limited supply

High demand for housing: Germany continues to experience high demand for housing, especially in large cities like Berlin, Munich, and Frankfurt. This is due to population growth, urbanization, and the inflow of migrants. The influx of refugees also affects the demand for housing.

Shortage of new construction: In recent years, the volume of new construction has significantly decreased. According to Savills, the number of building permits and completed projects has significantly declined, exacerbating the housing shortage. Further construction reduction to about 200,000 housing units per year is expected.

 

Rising prices and rental rates

Rising rental rates: Rental rates in Germany continue to rise faster than housing prices. This is due to the limited supply of new housing and high demand. Further growth in rental rates is expected in the coming years, especially in large cities.

Stabilization of property prices: After a period of significant price growth in 2021, the market began to stabilize. The Central Bank of Germany forecasts more moderate price growth in the coming years, which could give buyers more time to assess their options.

 

Investment opportunities and risks

Long-term investments: Real estate in Germany remains an attractive option for long-term investments due to stable rental income and low vacancy rates. Investors can expect steady income, especially in conditions of housing shortage and rising rental rates.

Economic and regulatory risks: The impact of global economic factors, such as rising interest rates and geopolitical uncertainties, can put pressure on the market. Regulatory changes aimed at preventing market overheating and supporting new housing construction are also possible.

 

Main players in the market

Largest companies: The German real estate market is dominated by companies such as Vonovia SE, Deutsche Wohnen SE, and LEG Immobilien SE. These companies are actively involved in buying and selling properties and developing new projects, which significantly influences the market.

 

Thus, the real estate market in Germany is characterized by high demand, limited supply of new housing, and stable growth in rental rates. Despite economic and regulatory risks, real estate remains an attractive option for long-term investments due to steady income and low vacancy rates. When making decisions in this market, it is important to consider current trends and forecasts, as well as carefully analyze your financial capabilities and goals.

Housing

Rent: The average cost of rent in Germany varies depending on the city. For example, renting a one-bedroom apartment in the city center may cost around 941 euros per month, while on the outskirts, it may be around 700 euros. In large cities like Munich, Berlin, and Frankfurt, rent is significantly higher than in smaller towns and rural areas.

Utilities: Utilities include expenses for electricity, heating, water, waste disposal, and internet. On average, they amount to about 296 euros per month for an 85 sq.m. apartment.

 

Food

Groceries: Food prices in Germany are relatively stable. For example, a liter of milk costs about 1.21 euros, a kilogram of apples about 2.62 euros, and a loaf of bread about 1.82 euros.

Restaurants: A meal in an inexpensive restaurant costs about 14 euros, while dinner for two in a mid-range restaurant costs about 60 euros.

 

Transport

Public transport: The cost of a single-ride ticket is about 3 euros, while a monthly pass costs 49 euros, allowing for the use of local transport across the country.

Personal transport: The cost of petrol is about 1.82 euros per liter. Car owners should also consider expenses for insurance, maintenance, and taxes.

 

Communication and Internet

Mobile communication: The cost of a mobile plan with included calls and internet ranges from 5 to 80 euros per month, depending on the amount of data and contract conditions.

Internet: The price for home internet ranges from 15 to 50 euros per month, depending on speed and provider.

 

Entertainment and Leisure

Fitness clubs: The average cost of a gym membership ranges from 20 to 50 euros per month.

Cinema and theater: A movie ticket costs about 12 euros, while a theater visit costs about 117 euros for two tickets.

 

Regional Differences

Expensive cities: The most expensive cities in Germany are Munich, Frankfurt, and Stuttgart. High housing prices and overall expenses make these cities more costly to live in.

Affordable cities: More affordable cities are located in Eastern Germany, such as Leipzig and Dresden, as well as in some regions of Western Germany. Here, rent and general expenses are significantly lower.

Availability of social housing for new immigrants: Social housing in Germany provides crucial support for low-income individuals, including new immigrants. However, access to such housing may be limited, and obtaining it requires fulfilling a number of conditions.

Housing subsidies

Social housing: The federal government and the Alliance for Affordable Housing have launched a large-scale program for the construction of new housing. It is planned to build 400,000 new apartments per year, of which 100,000 will be subsidized by government funds. This includes support for low-income individuals, making housing more accessible.

Subsidies for energy-efficient homes: The government also offers subsidies for improving the energy efficiency of existing housing, including the installation of solar panels and heat pumps. These measures are aimed at reducing energy costs and increasing the sustainability of the housing stock.

Social protection

Social benefits: Parents are entitled to various social benefits to support their children and other forms of financial assistance. Parents are required to use these funds correctly to ensure the well-being of their children.

Business support

Startup financing: Germany provides numerous grants and loans for startups, especially in the technology sector. Programs such as Pro FIT and ERP Start-Up Loan offer financial support for new enterprises, including grants and low-interest loans for development and innovation.

Regional investment grants: In regions with specific economic conditions, subsidies are available for creating new or expanding existing production facilities. These grants can cover up to 45% of costs for small enterprises and up to 25% for large ones.

Subsidies for education and research

Scholarships for students: Various scholarships and financial support are available for students, including international ones. Scholarships can cover both tuition and living expenses, making education in Germany more accessible to students from different countries.

Support for scientific research: Germany actively supports scientific and research projects through grant programs. These programs include funding for staff, equipment, and other expenses associated with conducting research and developing innovations.

Energy subsidies

Subsidies for electricity and gas: In response to rising energy prices, the German government has introduced various support measures, including subsidies for the payment of electricity and gas bills.