Destination Services — Challenges and considerations navigating the German rental market
Germany’s rental market has numerous obstacles, making it difficult for tenants and landlords alike. These impediments include a shortage of housing, increasing rent prices, landlord inclinations and complex procedures for applications. This report examines the pressing issues concerning the rental market in Germany, such as a synopsis of the nation’s tenancy laws, the average duration of lease contracts, the necessity of having a guarantor and more.
Limited housing supply
Cities such as Berlin, Hamburg, Stuttgart and Munich face an ongoing shortage of affordable rental housing, resulting in intense competition among renters and increased rental rates.
High rental costs
If desirable areas or urban centres are sought after, rental prices increase significantly and thus make housing less affordable, specifically for low-income individuals/families.
Lengthy rental application
The renting process in Germany is a time-consuming and complex application. Landlords require extensive documentation, credit checks and proof of financial stability, all of which can be challenging for both foreigners and residents.
Landlord preference
Furthermore, landlords in Germany may often demonstrate preferences based on nationality, profession, age, family status, or gender, limiting access to suitable rental accommodation.
Shortage of social housing
Germany’s social or subsidised housing options are also limited, leading to long waiting lists and few affordable housing options.
Additional considerations
Prospective tenants need to consider critical points, such as the likelihood of online listed properties being rented. Another issue is that viewings for the property are typically fixed, which requires punctuality due to the heavy demand. Also, landlords are typically not disposed to negotiate rental prices and there is often a preference for in-person property visits. It is also essential to plan for the likelihood that obtaining permanent accommodation may take months, necessitating temporary housing and, thus, an increased rental expense. Moreover, properties are typically unfurnished without kitchen units and landlords may require separate bedrooms for each child. Finally, tenants are responsible for regularly maintaining the premises and obtaining liability insurance. Moreover, contracts for leases are usually in German without modification options and security deposits, often withheld until all utility bills are received and paid and all damages are addressed.
Germany’s rental market presents a number of challenges that require insight, patience and an understanding of its idiosyncrasies. Those seeking rental accommodation must be willing to accommodate such difficulties and be open to making appropriate compromises. We advise connecting with experienced relocation specialists to ensure a smooth move. If you have any inquiries related to the German rental market, please do not hesitate to contact us.
Fruzsina Hodson
fruzsina.hodson@staging.santaferelo.com
DSP Group Support Manager
Polina Sinitsyna
polina.sinitsyna@staging.santaferelo.com
Destination Services Team Lead
