Law prohibiting the illegal Repurposing of Residential Housing without a permit – is temporary Letting still allowed?

The rental of holiday apartments in Berlin is now prohibited. The ban on misappropriation prohibits the conversion of living space into holiday apartments. There are only a few exceptions.
Many landlords who offer or want to offer furnished flats on a temporary basis are uncertain. Is this still permitted, and if so, with what conditions?

 

Gilt das Zweckentfremdungsverbot auch für Wohnen auf Zeit?

 

Is the temporary letting of furnished apartments also affected by the new Berlin Housing Law?

The target group for furnished temporary housing is no longer tourists, but people who come to Berlin to work.  Tens of thousands of people from Germany and abroad still move to Berlin every year to work here.
The housing market in Berlin is tense and it is not easy to find an affordable apartment. But it’s even more difficult when you’re not there to search.
These Neuberliners, who move to Berlin temporarily or for a longer period because of their job, initially rent furnished apartments for a limited period. And they do so until their employment in Berlin is over or they have found their own apartment.
The flats that are rented for a limited period of time are not withdrawn from the normal housing market. Because if they did not rent for a certain period of time, they would also be competing with the many people looking for accommodation for their already scarce living space. And it is precisely this group of people who would find it difficult to find their own apartment. Not locally and none also no Schufa history.

For temporary apartments, the new housing law does not apply if the landlord rents to tenants who come to Berlin to work there. The tenant must also rent for at least 2 months and live in Berlin during this time.
The fact that the tenant works here should also be certified in writing by the landlord.

Holiday Flats – Furnished Apartments for temporary Rentals:
The Differences

Can former holiday apartments now be offered as furnished apartments for a limited period?

Theoretically yes. However, time letting is a completely different business model and the apartments are furnished differently.
For temporary apartments, the Berlin law prohibiting the illegal repurposing of residental housing does not apply if the landlord rents to tenants who come to Berlin to work.  The fact that the tenant works here should also be certified by the landlord.

Holiday Apartment:

  • Target group Tourists who have rented for a few days or weeks
  • rather simply furnished
  • had many beds: Target group were families etc.
  • easy to clean, practical, less comfort – tourists are on the move all day long
  • Prices per night were shown, sometimes very high: calculated on the number of persons, however, cheaper than hotel, but projected on month rather expensive
  • is subject to the ban on misappropriation unless an exemption has been granted. Since August 2018, landlords have required not only a permit but also a registration number to rent a holiday home.

 

Furnished Apartment for temporary Rentals:

  • Target group: working people
  • Prices are shown per month
  • Competing with other temporary apartments, not hotels
  • higher quality furnished, more comfortable, a temporary home
    mostly for 1-2 persons, it makes little sense to rent a 60m² apartment to 4 persons for half a year
  • comfortable, easy cleaning also important, but carpets etc. are available
  • Prices are shown per month.
  • Should be affordable for normal earners. Competing with other flats on time, not with hotels.
    does not fall under the ban on misappropriation if tenant works in Berlin and rents for at least 2 months

Is there still a need for temporary apartments in Berlin?

Yes. Good apartments in good locations, not overpriced, good, stylish and furnished with attention to detail, are always available for rent.
However, there has been an oversupply since the entry into force of the law on alienation and the ban on holiday apartments. Many landlords who used to earn a lot of money with holiday rentals offer these apartments as furnished apartments on a temporary basis. Often with holiday home standard and at prices that are not in line with the market.

When should a Landlord rent out a temporary Accommodation?

Of course, it is clear that every landlord has an interest in achieving the highest possible rent. However, time-letting is not suitable for earning a lot of money. Although the rent index does not apply to temporary rentals, it is still not advisable to take advantage of this.  At least not if you want to let your apartment to good tenants on a long-term basis.  Landlords should focus on flexibility.
As already mentioned, professional careers that earn their living in Berlin are the target group of time-letting. Of course, they also rent production companies for actors who shoot in Berlin, CEOs, or people who can afford everything.  But this group of people also has demands. And not every apartment falls into the luxury segment.  With apartments in the top price segment, it is also rather unlikely that they are rented throughout.  We therefore recommend that you calculate the rental price in such a way that the apartment is rented throughout the year if possible.

It is also important that the landlord has fun with the topic of furnishing. It is no longer enough to simply place a bed, a cupboard and a desk in an apartment.  Atmosphere and the feel-good factor are also important.

Conclusion:

The ban on misappropriation applies to apartments that are rented to tourists on a daily or weekly basis. But not for temporary housing, if the furnished apartment is rented to tenants who come to Berlin to work. The minimum rental period is 2 months.
Furnished flats for a limited period of time are usually of a higher quality than holiday flats. It is no longer enough to put a bed, a wardrobe and a desk in the apartment for temporary living. Landlords have to deal with the topic of furnishing, because location, atmosphere and feel-good factor are important for good rentability.