Determine the rent: How landlords find the right rent

Optimum rental price: How to set the right rent

Many landlords are worried about getting it wrong when setting the rent in view of the rent cap. In fact, the regulations vary from region to region. However, with a system and a little know-how, it is possible to determine the optimum rent. We have summarised the most important aspects for you.

1. does the rent freeze apply to your region?

The rent freeze does not affect all municipalities in Germany - it mainly applies in around 300 cities, particularly in Urban centres and suburbs. Before you rent out your property, you should check whether your region is affected. You can:

• Research on the Internet
• Ask the city administration or competent authority
• Have it checked by a real estate agent

An experienced professional can quickly provide you with clarity and comprehensive advice.

2. local comparative rent and rent index

The rental price may not exceed Standard local comparative rent by no more than 20 per cent. This rent depends on factors such as

• Type and size of the property
• Location and facilities
• Current demand in the region

A rent index provides information on the local comparative rent, but is not always available and may be out of date. If no rent index is available, use the Market rent, which is based on supply and demand.

3. avoid excessively high rents

A high rental price may be tempting at first glance, but it harbours risks:

• The flat remains unlet for longer.
• You pay the ancillary costs yourself during this time.
• Tenants could move out again quickly if they find a cheaper flat.

A Realistic market price ensures long-term tenant loyalty and reduces vacancy costs. A professional estate agent will help you find the right balance.

4. rent optimisation despite rent control

Despite the rent freeze Rent increases possible if the standard of living is improved. These include

• Modern heating systems or underfloor heating
• High-quality flooring such as parquet
• Creation of additional parking areas or car parking spaces

If the property has been extensively modernised and at least a third of the new-build value has been invested, the rent cap does not even apply. However, please note Neighbourhood protection requirements, which can limit the scope of modernisation.

5. obtain expert advice

Finding the optimum rental price requires market knowledge, experience and expertise. A professional can:

• Interpreting the rent index correctly
• Realistically assess the market rent in your region
• Identify optimisation potential for your property

Your contact at FLEXMAKLER
Robert Schüßler
Property valuer (EIA and IHK)

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

Photo: © Stadtratte