Berlin Property for Sale

A web resource for overseas buyers looking to invest in Berlin property
Berlin Property for Sale
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Rents

Typical rental yields for individual apartments in Berlin are around 4%, although rents are heavily controlled and can therefore vary substantially. If tenants have been in place for a very long time then rents can be lower than this. Unlike the UK and Ireland, German residential leases are generally agreed for an indefinite period of time as Germans tend to remain in the same apartment for many years.
Thuke Klein
  
Tenants in Berlin have legal rights in relation to rent control, and it is only possible for landlords to raise rents at certain intervals, generally every 15 months. Typically it is possible to increase rents by up to 20% within three years. Some management companies have not historically taken advantage of the opportunities at their disposal to raise rents, which explains many of the instances of very low yields relative to current property values. New management companies taking on buildings can be expected to raise rents whenever permitted by the lease on a regular basis in future years.
When an apartment is purchased untenanted there is an opportunity for the landlord to achieve a 4.5% to 5% yield. Rent increases can be also be imposed if a building is modernised. There is a good chance that rental controls may be somewhat relaxed in years to come.

One unusual difference from many other countries is that it is normal for tenants to install their own kitchen in their apartment, and to take it with them when they eventually move out. Apartments are always rented unfurnished and unequipped, and most rental contracts oblige the tenants to re-decorate the apartment to a professional standard before moving out. A tenant will normally be liable for damage caused to the property, and the deposit paid secures the landlord in such a case (up to the level of the deposit). For damages beyond this level the landlord must initiate court proceedings in order to recover the losses.

Looking to the future, strong demands for rental property are envisaged as Berlin’s population is growing due to immigration from both inside and outside of Germany.