You have invested in an apartment in Germany and are planning to rent it. The last step that separates you from profit is the search for a tenant.
When you have purchased an apartment with an optimal location, in excellent condition, and are ready to rent it out, you need to find a suitable tenant. Obviously, someone who regularly pays the rent will suit you, abide by the rules of residence and the terms of the lease agreement.
Where and how to find a tenant? There are many platforms and resources on the Internet that facilitate the search for both rental housing and tenants. You can publish rental information yourself, for example, on real estate search portals. Many Germans are engaged in renting on their own in their spare time, or they do it with their main employment. They are looking for tenants, conduct housing reviews, select candidates, enter into contracts, serve and monitor housing.
The second most common option, which is used by both Germans and for the most part foreign investors is the management company. In every German city there are management companies or specialized departments in real estate agencies. They fully take on the process of renting housing. Using their own customer bases and advertising facilities, they find and select tenants, enter into a lease agreement and control the rental process.
The cost of management services is usually equal to two months of rental housing and paid by the owner after the successful conclusion of the lease agreement. In some cases, the services of a broker paid by the tenant.
How is a tenant chosen? Before concluding an agreement, the German landlord usually asks the tenant to fill out a special questionnaire and provide documents confirming solvency, good faith (in the form of a certificate from a previous landlord) and the so-called SCHUFA statement confirming the absence of bank debts and the tenant’s solvency.
The final decision is made on the basis of the collected documents and interviews with the tenant.
Why do foreign investors most often turn to management companies?
— First, many of them, after purchasing real estate in Germany, do not move to it, staying at home and making a profit from renting it out.
— Secondly, even living in Germany, not all foreign investors know German, the laws and rules of renting to do this on their own.
— Thirdly, working with people and constant monitoring of real estate is a rather intense activity, where much depends on the identity of the owner. There is always the likelihood of conflicts that will have to be resolved, and in itself the choice of tenants from dozens of volunteers may be a challenge for some.
Dominart Invest is one of the most active companies in Berlin, taking control of residential and commercial real estate both in the capital and throughout Germany. For over 10 years, we have been helping investors profitably rent out their properties by offering property management services for an average of 25 euros per month, depending on the terms of the lease.
Planning to purchase real estate in Germany for rent? Or are you already looking for a tenant for your property? Contact us, we are always available and happy to help. Just leave a request on the website or write to our chat, and we will respond to you within a minute, with pleasure providing any necessary information. You can also email us at kontakt@dominartinvest.com or call + 49 (30) 516 417 63
