What rental price can I set when letting a furnished apartment in Berlin?
A realistic assessment of the potential rental price for a furnished flat is always based on the individual apartment, and depends on many different factors. Even with a description of your apartment over the phone, there is an initial process to determine the rental value. Watch out for agencies that often quote very high prices on the phone, in the hope that the landlord will choose their agency over others who have given more reasonable estimations.
What rental price should I charge to get more tenants and less vacancies in my furnished apartment?
In order to avoid vacancies, we advise landlords to charge rent in line with the current market, and not to push the rent up. Discover more about calculating the right rent for a furnished apartment.
What are the advantages of setting a more reasonable rental price?
- You will have far less vacancies and a higher consistent income than if you let your apartment occasionally at a very high price.
- You will have the choice of several prospective tenants, and the freedom to decide which ones match your search profile.
- You will have fewer tenant changes. Experience has shown that tenants live longer in apartments for which the rent is in line with the market.
- Tenants feel fairly treated and are more motivated to take care of and respect the apartment.
What are the risks for landlords if the rental price of your furnished apartment in Berlin is too high?
- Longer vacancies between tenants
- You won't necessarily get the best tenants. It may even be that you end up letting to those who were rejected for all other flats and have no other option.
- If the tenant has rented the apartment without viewing and finds out on arrival that the standards of furnishing do not meet expectation from the high rental price, they can feel cheated. This may lead to less consideration from them when treating your apartment with care, allowing visits and presenting the apartment well for them.
Please bear in mind that not all furnished apartments found on the internet can be rented out continuously. As a landlord, there are no real advantages to renting out your apartment once at a high price, but having it stay vacant for another two months.
As a landlord the goal is naturally to make a profit with your furnished apartment. Many landlords, however, have unrealistic ideas about the earning potential. With the upcoming rent freeze in Berlin landlords should particularly make sure that the apartment's price – performance ratio is correct.
Who are the target groups for temporary letting?
Target groups for temporary housing are mainly people who come to Berlin to work, as well as those who pursue an educational goal here, e.g. studying, completing an internship, etc. According to the misapropriation of housing law passed in Berlin it is no longer possible to rent temporarily as a tourist.
Most tenants relocating for work come from abroad. They work for large, medium-sized, or small companies, with many of them at start-ups in the IT sector.
Where do the tenants come from?
There are not enough qualified workers on the Berlin labour market. IT companies in particular have a hard time filling jobs.This is why many companies depend on recruiting employees from all over the world. These tenants are well trained, and all speak English very well but are rarely German.
How long do tenants on average rent furnished apartments in Berlin?
Tenants who come to Berlin because of a new job need to rent a furnished apartment until they have found their own apartment. The average rental period is about 6 months. Many tenants aren't aware at first that it takes some time to find their own longer-term apartment in Berlin. Therefore, they will often start by renting for 2-3 months, and then extend one month before the expiry of the lease for a further three months - or even up to half a year.
What insurance do you need if you let a furnished apartment in Berlin?
Landlords can take out household insurance. With this insurance the entire equipment in the apartment is insured. Home contents insurance covers damage caused by fire, tap water, storm, hail, burglary, robbery, and vandalism.
Not every apartment needs such extensive insurance. As a landlord, you should check whether which insurance premiums are worthwhile for you. Don't forget to read the small print before taking out the coverage. The apartment is not always insured if a tenant lives in the apartment instead of you.
Which insurance protects against damage caused by the tenant?
A liability insurance. Agencies recommend each tenant to get liability insurance coverage. This insurance provides compensation if immovable furniture, e.g. parts of the installation area, or flooring is damaged. Some insurances also cover damage to movable objects, e.g. red wine stains on the sofa, etc.
Liability insurance is taken out to preempt any potential large damages that are clearly caused by the tenant. Whether the tenant is actually to blame for the water damage caused by the washing machine would be checked by the insurance company.
How should you furnish an apartment for a certain period of time
Good tenants have high expectations. They are looking for a temporary home, not just a furnished apartment. You should take this into account when planning the apartment. If you want to get a good rental price, it's best the apartment so that tenants feel comfortable. You can find more suggestions on this in the section furnishing tips for landlords.