Renting an Apartment in Berlin

The housing market is very tight in most German cities. Landlords will want to meet the potential renter and have a feeling of security; so essential to show that one has a dependable income and can communicate with them.

Its correct that most apartments are unfurnished and the ones that are, usually charge a ridiculous premium. Unless one is only staying a short time like maybe a year or less should one consider searching for a furnished one. What usually helps is personal contacts to someone who knows of a place. Tough for a new arrival but this could be co-workers or some employers will even hire a realtor to assist their new employees to find a place.

TominStuttgart wrote:

The housing market is very tight in most German cities. Landlords will want to meet the potential renter and have a feeling of security; so essential to show that one has a dependable income and can communicate with them.

Its correct that most apartments are unfurnished and the ones that are, usually charge a ridiculous premium. Unless one is only staying a short time like maybe a year or less should one consider searching for a furnished one. What usually helps is personal contacts to someone who knows of a place. Tough for a new arrival but this could be co-workers or some employers will even hire a realtor to assist their new employees to find a place.

Thank you for the feedback! May I ask you a few things:

1. Would it be a reasonable expectation to find an apartment within 2-3 weeks?

2. I'm CEO of a software company and earning a decent amount of money by European standards (€132,000+ annually), but: (a) by the time of signing the contract I won't have an account in a German bank and all my income would be from abroad (the company's headquarters are outside of the EU) ; (b) I don't speak German, although I can ask my sister who has been living in Berlin for many years to come with me and translate. Can it become a deal breaker?

3. What is a typical commission that realtors take?

Many thanks.

It is correct that the rental market is tight - and Berlin doubly so. You are lucky if you compete only with tens of candidates!
You, as a foreigner with limited German skills (by all means bring a German friend along for viewings and negotiations!) and no credit-worthiness history in Germany, are at a huge disadvantage against most other candidates. You must compensate for that by convincing the landlord that you will, in fact, be a model tenant.
Since landlords are usually very conservative in choosing and want to know their tenants, there is probably no point in searching before the family is here. But if you do, it should be at least three months before you want to move, because that is the minimum (by law) notice period for rental contract termination and most places are advertised (and better ones quickly taken) right after that.
It is also not a good idea to have a tight schedule - most people here search for far longer than just two/three weeks.
Good luck - you need lots of that, too!

My post crossed with yours, so I will add:
1. I think not. But it depends on your expectations (and how you sell yourself).
2. Anything can become a deal breaker (and you're never told a reason why you aren't chosen). But you definitely need a bank account with money for the deposit (3 months rent) and the first month rent before you move in.
3. Realtors here are paid by whoever engages them. So if a landlord asks one to help in finding a tenant, you don't have to pay (but he/she will also act in the landlord's interest, not yours).  In your situation, it might be a good idea to engage one yourself, who could even search in your absence and line up some viewings right after you arrive. The standard fee is approx. 3.5 months rent.

In some cases you would SCHUFA to rent an apartment. I doubt that you can find an apartment in 2-3 weeks. I think your best bet would be to contac to a real estate agent (or multiple one) they might be able to offer an apartment. There are other options as well, such as local newspapers or housing associations where you can try. But again this is a long process, be prepared for that.

beppi wrote:

My post crossed with yours, so I will add:
1. I think not. But it depends on your expectations (and how you sell yourself).
2. Anything can become a deal breaker (and you're never told a reason why you aren't chosen). But you definitely need a bank account with money for the deposit (3 months rent) and the first month rent before you move in.
3. Realtors here are paid by whoever engages them. So if a landlord asks one to help in finding a tenant, you don't have to pay (but he/she will also act in the landlord's interest, not yours).  In your situation, it might be a good idea to engage one yourself, who could even search in your absence and line up some viewings right after you arrive. The standard fee is approx. 3.5 months rent.

Thank you very much!

Dear Alex,

first of all - welcome to the wonderful city of Berlin! You are dealing with the same problems and questions as all the other expats moving to Germany. And believe me, at the end they all found an apartment.

Yes, it's harder to find an apartment in big cities like Berlin, Frankfurt, Munich. But you have a reasonable income and a good job. For the house hunting process you will need a couple of documents like prove of incoming, credit history, Schufa information (the basic one, free of charge is enough)... If you are not a EU citizen, you also would have to apply for a working visa before arriving in Germany.

Very helpful would be a relocation company to help you with all details regarding housing, registration office, new bank account ... Will your company pay for this service? Or will you get a lump sum? Depending on the company you will pay around 1700,-/2000,-€ in average for a house hunting service. It is always good to look for a package price instead of paying the relocation agent per hour. If you would hire a real estate agent for the search, a maximum of two cold rents plus tax are allowed. A relocation company is usually cheaper and includes more help than hiring a real estate agent only for finding an apartment.

Regarding the fees for real estate agents in Germany there are the following rules:

When arranging residential rental contracts in Germany, the ordering principle applies. If the landlord hires an agent to rent out his apartment, he pays the commission. If you hire a real estate agent to look for an apartment for you, you have to pay. When buying real estate as a private person, a law regulates that the seller and buyer should usually share the brokerage commission. In Berlin, sellers and buyers are currently paying an average of 3.57% each.

It would be good to start searching at least 3 - 4 month before moving, as the notice period is usually three month. It would be better to start the house hunting beginning/middle of May. When arriving in Berlin for searching apartments, you would need to have a signed contract from the new company or at least a letter, which proofs your future employment status. I addition you would need a credit history from your current bank.

Another possibility for the house hunting could be to contact a company which is managing furnished apartments for expats, especially if you are moving without any furniture. There are some companies which take care of houses and apartments from expat families during their stay in another country. The objects are partially or fully furnished. The rental contract has to be at least three month (due to a law in Berlin), but usually it is much cheaper than renting a "holiday" apartment for a couple of weeks. In this case you would arrive in Berlin with your family in peace and start the search while you are there. During this time you could already register at the residents' registration office because you would need the registration certificate to open a bank account.

Please keep also in mind, that summer vacation is ending  21.08.22 in case your kids are already attending school.

It all sounds very complicate but I've never met a family that couldn't find an apartment.

Good luck, Kerstin

berlinrelocation wrote:

If you would hire a real estate agent for the search, a maximum of two cold rents plus tax are allowed.

Excellent post - and I also learned something, as I didn't know that the fee for appartment-seekers is limited (by law) to two months rent plus tax (19% MWSt, thus 2.38 months rent altogether). My post above, stating the (previously common) three months plus tax (thus 3.57 month) is thus wrong- sorry!

@beppi: Thank you for the compliment. I work as a relocation agent as well as a broker and it is important to me that people are informed properly. In a foreign country there is so much to consider at the beginning. Whether in the property search, the school selection or in the case of administrative aspects, you have to take care of so many things. Insufficient or no knowledge of the country language is often added to this. Of course, I can only recommend professional support to everyone . Unfortunately there are a few "black sheeps" in my line of work who ruin our reputation.
So I try to help as much as possible in this forum. I myself have lived in the USA and Italy for several years and have experienced for myself what has to be considered when starting over.

berlinrelocation wrote:

Dear Alex,

first of all - welcome to the wonderful city of Berlin! You are dealing with the same problems and questions as all the other expats moving to Germany. And believe me, at the end they all found an apartment.

Yes, it's harder to find an apartment in big cities like Berlin, Frankfurt, Munich. But you have a reasonable income and a good job. For the house hunting process you will need a couple of documents like prove of incoming, credit history, Schufa information (the basic one, free of charge is enough)... If you are not a EU citizen, you also would have to apply for a working visa before arriving in Germany.

Very helpful would be a relocation company to help you with all details regarding housing, registration office, new bank account ... Will your company pay for this service? Or will you get a lump sum? Depending on the company you will pay around 1700,-/2000,-€ in average for a house hunting service. It is always good to look for a package price instead of paying the relocation agent per hour. If you would hire a real estate agent for the search, a maximum of two cold rents plus tax are allowed. A relocation company is usually cheaper and includes more help than hiring a real estate agent only for finding an apartment.

Regarding the fees for real estate agents in Germany there are the following rules:

When arranging residential rental contracts in Germany, the ordering principle applies. If the landlord hires an agent to rent out his apartment, he pays the commission. If you hire a real estate agent to look for an apartment for you, you have to pay. When buying real estate as a private person, a law regulates that the seller and buyer should usually share the brokerage commission. In Berlin, sellers and buyers are currently paying an average of 3.57% each.

It would be good to start searching at least 3 - 4 month before moving, as the notice period is usually three month. It would be better to start the house hunting beginning/middle of May. When arriving in Berlin for searching apartments, you would need to have a signed contract from the new company or at least a letter, which proofs your future employment status. I addition you would need a credit history from your current bank.

Another possibility for the house hunting could be to contact a company which is managing furnished apartments for expats, especially if you are moving without any furniture. There are some companies which take care of houses and apartments from expat families during their stay in another country. The objects are partially or fully furnished. The rental contract has to be at least three month (due to a law in Berlin), but usually it is much cheaper than renting a "holiday" apartment for a couple of weeks. In this case you would arrive in Berlin with your family in peace and start the search while you are there. During this time you could already register at the residents' registration office because you would need the registration certificate to open a bank account.

Please keep also in mind, that summer vacation is ending  21.08.22 in case your kids are already attending school.

It all sounds very complicate but I've never met a family that couldn't find an apartment.

Good luck, Kerstin

Hi Kerstin

Thank you so much! That's very useful and is helping to structure my own thoughts and streamline the entire process.

One question to you, if you don't mind: from the landlord's perspective, is an employment with a non-EU company a deal breaker or would they be OK as long as my salary is high enough to cover the rent?

Thanks again,
Alex

I am renting out a few apartments myself (although not in Berlin) and can say:
Most property owners do want to have less problems (thus model tenants - quiet, clean, German non-smokers without kids and pets, who integrate well into the neighbourhood - have a clear advantage) and want to be sure the rental payments are coming (thus well-earning tenants with a clean credit history are preferred).
Anything that deviates from this is seen as a risk. Whether it is a deal-breaker depends on the individual landlord (and how many applicants there are). There is no general rule for this!
(I personally apply radically different criteria to select my tenants, but am a rare exception here.)