How can I best rent my property?
Short-term furnished rental
A short-term rental model is practical for non-residents, since you can stay in the property when you want to, and it can be let at higher rates than long-term rentals to tourists for the remainder of the year. However, we advise you be aware that:
Legislation may change in the near future to curb short-term rentals in a number of popular Berlin districts, as a result of complaints from local renters and owners
You also need to factor in the effort of managing ever-changing short-term tenants yourself – or the cost of commissions paid to short-term rental agencies and tourism operators
Temporary furnished accommodation
Temporary rentals of furnished properties generally start at a three-month contract. As many apartments in Berlin are offered on this basis, yours could remain empty between one tenant leaving and another found.
This means that, to maximise your rental returns, you should actively list your property on the rental market, taking non-rental gaps into account in calculating your purchase financing and potential returns. However, Berlin has a healthy rental market, so it should not be a problem in the current market.
Different legal provisions apply to longer-term rental contracts. Leases are usually valid for an unlimited period of time, meaning you cannot terminate a tenancy contract without good cause.
Rent increases are only allowed within the framework of German tenancy laws. You can theoretically raise the rent by 20% every three years, or in stages every 15 months, but only based on the average value given by the Berlin rent index (‘Mietspiegel’) which is based on amenities, degree of modernisation, size, age of the property and its location. However, there are still opportunities for entering into longer, fixed-term leases or a graduated lease agreement, which GATE Berlin can advise you on.