There has been a lot of talk lately about the fact that we may become more a nation of renters than a nation of buyers when it comes to property.
The German rental system has been bandied about as a solution to all our woes. Today I thought I would show you what is involved in the German system and open up a debate as to how this may or may not work here. Beware folks- this is a German system, so there are a LOT of rules
Facts:
Contracts are very long term- up to ten years and fixed in term. Around 58% of Germans rent property.
- Unfurnished apartments are completely unfurnished. There is no built-in cabinets, cupboards or even lighting fixtures. You buy everything, including the proverbial kitchen sink! Stoves, refrigerators, kitchen cabinets, wardrobes, bookshelves, tables, beds, chairs, curtains, curtain rods, lights and everything else are your problem.
- Leases are long documents full of legal terms. It might even contain a pitfalls like annual rent increases.
- Notice periods, renovations or actions in the event of non-payment of rent may not be in the lease but are still covered because of the law.
- Fixed term agreements can’t be terminated early except under extraordinary circumstances.
- The landlord payments are made monthly but in two parts: the rent, which cannot be changed for the duration of the lease, and the rest can include a share of the landlord’s property tax, heat, stairwell cleaning etc.
- Utilities are paid for separately, though these can include rubbish collection and water.
- Rules regarding noise are stringent; loud noises between 1 p.m. and 3 p.m. and from 10 p.m. to 7 a.m Monday through Saturday, and all day Sunday.
- You have to wash and dry laundry only in the areas or rooms provided by the landlord and you have to leave cars, bicycles, baby carriages, etc., only in areas provided by them too.
- You’ll need the landlord’s written permission if you want to keep a pet.
A Few More Things….!
It’s expensive to find a place too.The quickest is via an Immobilienhändler, -estate agent. You give two or three months’ rent as a fee is which is completely separate from the deposit, and you’ll have to pay the landlord- up to 3 months advance payment. ( ouch!)
An example of costs would be: a place that rents for €1,000 could mean they charge you up to €3,000. The landlord’s deposit is around €2,000 – €3,000, and the first month’s rent is another €1,000. That’s a total of €6,000 – €7,000, of which only €1,000 towards actual rent!
Lastly, your deposit will be returned with interest when you leave, provided your place is in good order. This generally means a renovation on your part, and it can be specified that its done by a professional.
So, is the German system better than ours? How would our housing stock cope with this type of system- is it even feasible to employ some or all of these rules? And, how would it effect our LHA system? What do you think?
