The quirks of moving in Germany
Around 8 million Germans move into a new house or apartment every year, with most of them renting rather than owning. The moving process can be full of surprises. We break some down, from red tape to bread and salt!
Germany: Country of renters
When it comes to the housing market in Germany, renting is still the most popular way to go. According to surveys from Germany's Federal Statistical Office, in 2018 some 42% of Germans owned the home they lived in whereas some 58% rented. This is the lowest rate of home ownership in the EU. The highest is Romania, where 96% percent own their homes.
Why the love of renting?
After WWII, a mass housing shortfall and lack of private capital spurred the construction of rental social housing in West Germany, while in communist East Germany ownership was, of course, taboo. This historic trend towards renting mixes with rental protection that remains strong today. Germans wanting to buy face stringent conditions to get a mortgage — and they're skeptical of credit, anyway.
Check your 'rental mirror'!
If you rent, make sure you don't overpay. But how? Just check your "Mietspiegel," or "rental mirror." Calculated by local authorities, it shows the average rental price per square meter in an area and reflects fluctuations, such as when demand or luxury construction ups rents. At the end of 2018, the average was highest in Munich: €17.56 per square meter. It's also the most expensive place to buy.
What type of place?
If you are planning a move, you need to know what type of place you're looking for. Do you want a detached family house or a split townhouse? Your own flat or shared flat, known as a "Wohngemeinschaft" or "WG"? How many rooms? Whatever you do, allow a few months for the search. And remember: A first-floor apartment is not on the ground floor, so you'll have to lug your stuff up the stairs.
Talent show or flat viewing?
If renting, prep for a multiround process that's sort of like a talent contest. You'll need to sell yourself as the ideal tenant! You'll be asked for personal info, credit scores and about all your living habits. Questions on nationality and family plans are technically not allowed. Unlike elsewhere, you can't put down a deposit that takes the property off the market for others, so woo away!
Do you take your rent warm or cold?
A rental price can either be "warm" or "cold." And no, this doesn't have to do with how attractive it is. Cold rent ("Kaltmiete") is the price you pay for the space, while warm rent ("Warmmiete") usually includes heating, electricity and water. Whether the renter pays these costs directly or reimburses the owner depends on the arrangement. Building admin costs also get added on to all this.
Deposit required
When you rent, you are required to pay a security deposit that can equal no more than three months of "cold" rent. You get it back when your rental period ends, minus any damages or outstanding utility costs. But don't expect a quick return — landlords have the right to hold a deposit or part of it for up to 6 months, which means you could have to pay the next one before getting your old one back.
BYOK: Bring your own kitchen
What do you mean there's no kitchen? While this might shock some newbies to the German housing market, it's typical for German homes to be totally unfurnished, lacking even stoves and fridges. In some cases, you can buy the existing kitchen off the outgoing tenant. Otherwise be prepared to install your own. Happily, your neighbors might be able to help: Many Germans do their own home renovations!
Moving truck papers needed
Moving day has arrived! But do you have your permit reserving street space for the moving truck? This must be arranged ahead of time with local authorities. Self-made signs saying "Please don't park" won't cut it — though you'll see them, anyway. Also, don't forget to register your new address with local government once you've moved, so you can get an updated proof of residency documents.
It's party time!
Flat found? Check! Moved? Checked! Kitchen installed? Check! Time to party! Many Germans throw a housewarming party after a successful move. It's a way to say thanks to those who helped you move, meet the neighbors and show off the new digs. Guests often give the newly moved hosts bread and salt; the traditional food staples are a wish for good luck in a new home.