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Renting a flat is one of the many points on the long to-do list when moving to Germany, but how do you do it? We asked a real estate broker in Düsseldorf for some more information about “renting lingo” which is important to know before renting a flat in Germany.
If you don’t have a bank account set up yet, you’re going to need one in order to start making rent payments. Check out our post on the 6 best expat banks in Germany. You also may require to provide your Schufa, in which case you might also want to read up on “What is Schufa and how can I get it for free?“
One of the first “missions”, when I moved to Düsseldorf, was to find a place to live. I remember back then that I started my search on main online real estate platforms and realized one thing: most of them are all in German.
And I thought:
“How am I supposed to understand all these terms? What is important?”
It’s not an easy task to venture through, I will be honest, but in order to find a flat that you love, you’re going to have to put some elbow grease into it. However, in order to help English speakers, like myself, understand some German real estate concepts, here is a small recap of the most important things to be aware of before renting a flat in Germany:
When renting a flat, what do “Kaltmiete”,” Warmmiete” and “Nebenkosten” mean?
German listing portals mention two different types of rent:
The difference between “Kaltmiete” and “Warmmiete” is referred to as “Nebenkosten” (or “Betriebskosten”) i.e. ancillary costs.
The “Nebenkosten” concerns all costs related to the use of the property by the tenant. However, costs associated with administrative or management costs should not be part of the “Nebenkosten”.
“Nebenkosten” could include any of the following items:
- Lift costs
- Common area electricity
- Garden tending
- Building cleaning
- Antenna and cable fees
- Real estate tax
- Caretaker cost
- Heating and hot water provision
- Waste disposal
- Property insurance and liability insurance
- Chimney cleaning
- Street cleaning
- Water supply and drainage
- Laundry fee (maintenance of the machine)
These costs are not listed on online listing portals. Nevertheless, if you are about to sign a rental contract you should definitely ask the lessor which charges are part of the “Nebenkosten”. He should give you a complete overview and breakdown of such “Nebenkosten”. Also, do not forget to ask if the heating costs are already included in the “Nebenkosten”!
For those of you who have already signed their contract, but are wondering what are in those mysterious “Nebenkosten”, you have the right to ask your landlord. Moreover, if you think that the “Nebenkostenabrechnung” (overview of the annual ancillary costs) is too high, you have 12 months to ask your landlord for a written justification of these costs. On the other hand, he also has 12 months to correct the invoice.
PS: In order to avoid any problems, make sure you have a good liability insurance! Popsure offers private liability insurance for 4,99/month, otherwise you can use a price comparison website like TarifCheck to compare your options.
Last but not least, is there a way to avoid high “Nebenkosten”? One trick is to look at the heating system. In Germany, there are several types of heating systems. As mentioned above, this can considerably affect ancillary costs. When you choose a flat, avoid renting one with an electricity system (Strom) as it is very expensive.
Looking for a list of awesome websites to find the perfect apartment for your needs in Düsseldorf? Check out our list of apartment search engines with over 15 recommendations!
Here are a few other posts that might spark your curiosity:
- 10 Affordable & Awesome Shops to Decorate Your Apartment
- The 5-Step Process to Moving into your Apartment in Germany
- 10 Things to Consider When Renting a Furnished Flat in Düsseldorf
- The Guide to Düsseldorf’s Districts | Which One is Right for You?
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Is that all? Why not explaining more about the different types of heating system? I heard that the oil one is also very expensive but don’t know exactly why.
I’m certain that isn’t all, then again we’d probably need to write a 5,000-word post to fit all the tips to renting flats if we wanted to include it all haha. However, that is what I am hoping the comment section will help with. If you have additional questions after reading the post – ask in the comments section and the community can help answer the questions too (I’ll post it on our Facebook page to see if we can get a few answers).
While I’m not 100% certain either, I do know that oil heating is quite expensive in comparison to natural gas. Germany puts a lot of their focus on creating renewable energy, but the costs of oil and natural gas heating are constantly on the rise. Oil takes up a lot more energy to heat and circulate the hot water through the radiators which could be why the cost is significantly higher.
Karen, here’s a really good answer from Facebook user Ann-Katrin B:
“Oil is expensive, requires transportation as well and is terrible for the environment, hence there is extra cost due to that as well (thankfully!). The gas heaters are getting more and more efficient, the oil heaters are generally old. Several countries are working hard to get rid of the remaining oil heating systems, and it is also not allowed to use it everywhere – because of fumes etc.”
Thanks for the reply Jenna!
I would have gone a bit more in detail how the ‘Nebenkosten’ are just an advance. It doesn’t really flow to where the ‘Nebenkostenabrechnung’ is mentioned.
Once a year the final invoice is calculated and the monthly advances subtracted from it to get a remaining amount due or to receive back. This can also influence the monthly advance.
Good point Mirjam! Thanks for adding this tip! 🙂
She could come back to say a bit more as in a part two! ☺️
Probably the most important aspect that is missing here is your credit rating. In most cases, you will have to have documents, and I mean real documents, to prove that you are able to pay your rent. German landlords commonly want to see a “Schufa” rating, which is impossible to have if you don’t have a bank account, any type of loan and/or a mobile phone account. Having said that, there are many “WGs” – short for “Wohngemeinschaften”, i.e. shred accommodation. These are more informal and don’t go via estate agents, your future flatmate(s) will assess you and decide whether you’re good to go.
Great note Heike! Thank you so much for your input, this definitely helps expats make the right decision when looking to rent a place out in Düsseldorf. ????
All the best,
Jenna
Finding an apartment in Berlin is not an easy task. The city is notorious for being difficult to rent an apartment in. There is high demand, prices seem to be rising all the time, and as in in any big city this demand creates a shortage of quality apartments. Plus in Berlin, there is a lot of paperwork and bureaucracy involved in renting, especially if you are an expat or foreigner. It can be incredibly stressful to navigate if you don’t know the city. You must do a lot of research but even that sometimes doesn’t make it stress free. I think there is an increased demand for coliving berlin options. This means great apartments, in great locations- and companies you can trust to help you find a good place to live without the hassle. Worth looking into for sure.