Magazine

John von Freyend Real Estate
Categoriesreal estate financing Renovation

Buy an older house: What will I have to pay for the renovation? (Renovation calculator)?

Anyone who wants to buy a house, where some work still needs to be done to get it back to an acceptable level, faces two questions:

  1. What do they cost Remedial measures?
  2. How much energy does the house need?. What energy efficiency class will the house have after the renovation??
  3. Which KfW funds (Promotional loan) I can use it?

As far as energy efficiency is concerned, is it important, Know the energy needs of the house, in order to minimize both the environmental impact and the running costs for heating and electricity. After the renovation, an energy assessment can be carried out, to realize, which energy efficiency class the house has achieved. This can be done by improving the insulation, replacing windows and doors, the installation of energy-efficient heating- and cooling systems as well as the use of renewable energies.

These questions are important when deciding whether you want to purchase the house. The total investment costs, consisting of the purchase price of the house, the additional costs and the renovation costs, are crucial for the Financing planning. It is important, to carefully consider all these costs, to ensure, that the financing is sustainable and the budget is not exceeded. A thorough calculation before purchasing the existing property is therefore essential, to avoid and ensure financial surprises, that the house meets your own requirements and ideas.

Renovation calculator

The costs for renovation measures can vary greatly and depend on various factors, like the condition of the house, the extent of the necessary renovations and the materials and craftsmen chosen. Because it is usually difficult, Baufi Partners offers an estimate of these costs Real estate renovation calculator which supports an initial cost estimate. We would like to point this out at this point, that the cost calculator provides an estimate and cannot replace an exact determination by a specialist such as an architect or civil engineer.

➔ Click here for the renovation calculator

Real estate renovation calculator

➔ Click here for the renovation calculator

invoice for additional costs
CategoriesLaw & regulations

Additional costs when renting living space: Allocable and non-allocable costs

The question of additional costs when renting living space is of great importance for both landlords and tenants and is subject to legal regulations, those in Germany especially in the second book of the Civil Code (§ 556 BGB) are anchored. Only additional costs are eligible for apportionment, which occur regularly. repair- and administration costs, however, are always the responsibility of the landlord. The exact additional costs, which the landlord can impose on his tenants, are not in the Civil Code, but in the Operating Costs Ordinance (BetrKV) set.

Die Operating Costs Ordinance (BetrKV) sets, which expenses landlords can charge tenants via the utility bill. It is divided into two sections: The first section Are defined, which costs are apportionable and which not. In the second section will be 17 Cost items listed, which correspond to the definitions in the first section and can be billed by the landlord:

  1. Property tax
  2. Water supply costs
  3. Drainage costs
  4. heating costs
  5. Hot water costs
  6. Costs of associated heating- and hot water supply systems
  7. Cost of operating the person- or freight elevator
  8. Costs of street cleaning and garbage disposal
  9. Costs of building cleaning and vermin control
  10. Garden maintenance costs
  11. Cost of lighting
  12. Chimney cleaning costs
  13. Cost of the item- and liability insurance
  14. Costs for the caretaker
  15. Costs of operating the community antenna system or broadband distributor
  16. Costs of operating laundry facilities
  17. Other Charges

How are the heating costs divided among the tenants??

Die Distribution of heating costs basically depends on the type of heating. Renter, who heat their homes with electricity, normally do not receive a separate billing, but bear the costs via their personal electricity bill.

For gas, Oil-, Pellets- and district heating, the situation is different. In these cases, the landlord usually issues a statement, either separately for heating costs or as part of the utility bill. If the heating costs are billed as additional costs, The rental agreement must contain the same billing period for additional- and heating costs must be fixed. If different billing periods have been agreed, Tenants receive separate additional costs- and heating cost bills. In both cases, the same formal requirements apply.

Heating costs have a special status compared to the “cold” Additional costs such as garden maintenance, Property tax or building cleaning, as they must be billed individually based on consumption – at least partially. The landlord must 50 until 70 Calculate the percentage of heating costs depending on consumption, while 30 until 50 Percent can generally be allocated using a distribution key. Typically the costs are for the heating system, like maintenance, cleaning, Monitoring and operation, distributed in this way.

For oil heating, the landlord must indicate the oil inventory at the beginning and end of the billing period, while natural gas and district heating must be specified, how much energy was used by the respective tenant and what costs were incurred as a result.

Operating costs regulations and additional costs billing

Although in common usage, additional costs are often equated with operating costs, On closer inspection, this is not entirely correct. Under operating cost you understand all current expenses, which occur regularly and ensure proper use of the rental properties. In contrast, include extra costs all costs, which the landlord incurs in connection with the rental property. In this context, operating costs are only part of the additional costs.

The following applies when allocating additional costs: The landlord can only demand back the additional costs from the tenant, which were expressly agreed in the rental agreement. Many tenants find the term “Operating Costs Ordinance” hence in their rental agreement. There are often agreements like this “In addition to the rent, the tenant bears the additional costs in accordance with Section 2 of the Operating Costs Ordinance” to find. This clause means, that the tenant must pay all cost items, those in the second part of the Operating Costs Ordinance (BetrKV) are listed.

However, there is an exception “other operating costs“. They are not a catch-all item for all possible costs, which the landlord does not want to bear himself. The tenant only needs those “other operating costs” take over, which are expressly stipulated in the rental agreement. Possible “other operating costs” could, for example, the operating- and maintenance costs for a communal swimming pool or the maintenance of smoke detectors and fire extinguishers.

If the landlord wants to allocate the additional costs in accordance with the Operating Costs Ordinance, He does not necessarily have to attach this regulation to the rental agreement. In many rental agreements, the regulation is still included in the appendix. If the rental agreement does not refer to the operating costs agreement, The landlord must list all operating costs in the contract, which he would like to pass on to the tenant. It is not enough, if only stated in the rental agreement: “The tenant pays the additional costs.”

Operating costs regulation for rental contracts before and after 2004

The current operating costs regulations apply to all rental agreements, since the regulation came into force 1. January 2004 have been concluded and involve apportioning the operating costs to the tenant. The provisions already explained apply to these rental agreements.

But what about the contracts?, the ones before 2004 were completed? There is disagreement about old rental agreements, whether the previous regulation continues to apply or whether the new regulation automatically applies. Applicability depends on the contractual clauses. If you have such an older contract, we strongly recommend, Get advice from an experienced tenancy lawyer.

Court rulings on deadlines and § 556 BGB

Despite the accessibility of the regulations and deadlines in § 556 BGB on utility billing/operating cost billing for landlords and tenants, delay numerous landlords or. Property managers still process the bills. It even happened in many cases, that a subsequent correction was necessary.

Here are some judgments regarding the billing period for additional costs according to § 556 BGB. These judgments were in favor of the tenants.

Fall I: Missed billing deadline, Repayment of additional costs per year 2004 the tenant received an additional claim for operating costs in the amount of 185,89 € for the period from 1. November 2001 until 31. December 2002. Although the tenant was no longer living in the rental property at that time, he paid the additional demand immediately. After he learned his rights under the German Civil Code (BGB)., the tenant demanded of his former landlord, to refund the additional payment, since the one-year billing period according to § 556 Abs. 3 Sentence 2 BGB was neglected by the landlord, which was not yet known to the tenant at the time of the additional payment.

Verdict (BGH Az.: VIII ZR 94/05): The lawsuit was decided in favor of the tenant. According to § 556 Abs. 3 Sentence 2 and 3 BGB, the landlord would have the billing for the period from 1. November 2001 until 31. December 2002 at the latest by 31. December 2003 have to submit. After this twelve-month period has expired, the tenant is no longer obliged, to make additional payments. The tenant was therefore entitled to a refund due to the expiry of the deadline.

Fall II: Correction of the allocation key after the deadline has expired. In this case, an allocation of operating costs was agreed in the rental agreement. The tenant received a year 2002 an operating cost statement 658,01 € for the year 2001. The tenant left in February 2003 Objection. During the year 2003 the landlord changed the billing based on the co-ownership shares, which leads to a higher additional demand 694,14 € led.

Verdict (BGH Az.: VIII ZR 115/04): The landlord did not issue the corrected bill with the higher amount until that year 2003 out of, what after the billing deadline for the year 2001 happened. According to § 556 Abs. 3 Sentence 3 BGB, the assertion of additional claims by the landlord after the deadline has expired is excluded. The tenant is therefore only responsible for paying the lower amount 658,01 € obligated, the one for the year 2002 was billed. All corrections and additional requests after the deadline are invalid.

Fall III: Correction of the additional costs after the deadline at the expense of the tenant. In this case, the landlord made it on time in December 2004 the utility bill for the year 2003 and gave a credit of 208,73 € for the tenant. In February 2005 However, the landlady subsequently corrected items in the billing and made an additional payment of 115,06 € fest. The tenant refused to pay, whereupon the landlady sued.

Verdict (BGH Az. VIII ZR 190/06): In this judgment, the exclusion period and the billing period according to § 556 Abs. 3 Sentence 2 and 3 BGB is crucial. The landlady was not authorized, to make additional demands after the deadlines have expired. The tenant was not obliged, to make the payment.

Important to note: In principle, court rulings apply to tenants regarding the deadlines for billing operating costs:

  • If the landlord makes a correction to the billing and notices this, that the tenant has credit, This credit must be paid to the tenant.
  • However, if a correction leads to this, that the tenant has to pay more, The landlord is still bound to the original billing and may not demand increased additional payments after the deadline has expired, even if the correction was made after the deadline (BGH Az. VIII ZR 190/06).
  • A tenant can request a refund of utility bills that have already been paid, if the deadline for delivery had already expired, when he received the bill (BGH VIII ZR 94/05).
building renovation
CategoriesLaw & regulations

New EU law: Obligation to renovate and its consequences for homeowners

The EU Parliament has approved the directive on the energy-efficient renovation of residential buildings. This marks an important step towards the EU's climate goals. The plan provides, the energy consumption up to 2030 around average 16 percent and to 2035 a 20 until 22 percent to reduce. In addition, until 2030 16 Percent of the least energy efficient buildings and up 2033 26 percent to be renovated.

What the renovation obligation means for homeowners

The initiative is based on a proposal from the EU Commission, who pointed it out, that building for around 40 percent of energy consumption and a third of greenhouse gas emissions in the EU. Better insulation and modern heating systems could reduce energy requirements and reduce environmental impact.

Implementation in Germany

The implementation of the directive in Germany will be crucial. There are no enforcement measures for individual buildings, emphasized EU chief negotiator Ciarán Cuffe and Federal Construction Minister Klara Geywitz. A one-size-fits-all solution would lead to social upheaval. The exact clarification, which buildings need to be renovated and when, is a major challenge for the federal government, said the main association of the German construction industry. A balance must be found between efficiency and feasibility. Originally, a specific obligation to renovate was planned. However, critics complain, that the compromise neutralizes the climate policy benefits of the directive. The ambitious plan could be financially overwhelming for homeowners.

Objectives of the directive

The new directive aims to do this, the energy consumption of residential buildings 2030 around average 16 percent and to 2035 a 20 until 22 percent to reduce. Renovation of non-residential buildings is also required, to reduce energy consumption. The initiative for this directive goes back to a proposal from the EU Commission, which was submitted about two years ago. According to the Commission, buildings are responsible for a significant share of energy consumption and greenhouse gas emissions in the EU. A stricter obligation to renovate was originally planned, but this was weakened. Critics complain, that this undermines the climate policy benefits of the directive. The debate remains intense.

Possible impact on the real estate market

The implementation of the directive in Germany could lead to a loss in the value of numerous properties, especially when minimum standards are introduced. The exact effects remain to be seen. There are subsidies for gas replacement- or oil heating as well as funding for further efficiency measures. The details of the funding are explained, whereby is emphasized, that the investment costs are capped.

Conclusion and outlook

The directive on the energy-efficient renovation of residential buildings represents an important measure to achieve the EU's climate goals. However, the exact implementation and its effects in Germany continue to be intensively discussed and monitored.

bgh living space
CategoriesLaw & regulations

BGH ruling: The time at which the rental agreement is concluded determines the calculation of the living space

The calculation of the living space for rental contracts depends on the time the contract is concluded, regardless of the type of living space. In a case from Bonn, a tenant sued for repayment of overpaid rent after a living space measurement, which has a deviation of over 10 percent resulted.

The landlady argued, that the balcony area after II. Calculation regulation (II. BV) should be taken into account in half. However, the Federal Court of Justice confirmed, that the living space regulation only allows a quarter to be taken into account.

The decisive factor is the time at which the contract is concluded. The Living Space Ordinance applies to rental agreements for free living space, if they come into force in the year 2004 were closed, regardless of previous calculation methods.

Landlord:within, which so far after the II. BV calculated, must be taken into account for new rentals 2004 bear the costs for a recalculation according to the Living Space Ordinance or stipulate this contractually.

Those: BGH, Decision v. 17.10.2023, VIII ZR 61/23

Munich market house purchase
CategoriesReal estate markets in the Munich metropolitan region Munich Research

The right time to sell your house in Munich is now

The current developments on the real estate market show a clear picture: The time to buy a home is now. According to a new analysis by the German Economic Institute (IW) The purchase prices for real estate are rising again. In the fourth quarter 2023 The prices for apartments rose on average 0,8 percent and for houses around 0,6 percent compared to the previous quarter. Although the prices are still a little cheaper than last year, the trend clearly points to a recovery in the market. The price decline phase appears to be over, said IW economists Pekka Sagner and Michael Voigtländer.

The reason for this upward trend is this, that this time there is no oversupply of apartments, as has been the case at the end of past real estate cycles. Nationwide there is still a shortage of around 700.000 Apartments, especially in big cities. Despite the real estate boom, too little was built, and new construction has fallen by around half due to rising construction costs and interest rates.

The lack of living space leads to rising rents, the last one by just under 9 percent in new contracts have increased. At the same time, demand from property buyers is slowly returning, as many have gotten used to the higher building interest rates or their income has increased. This makes higher rates affordable again. This means one thing above all for prospective buyers: You have to act quickly.

The situation on the Munich real estate market is particularly surprising, where the prices for the most traded property are, the condominium in stock, since 18 steadily decrease for months. Despite increasing rental demand in a city, which annually up to 20.000 new residents recorded, the prices for this property category fall on average 13 percent. One reason for this is that current loan interest rates, the up to 4,5 percent and deter many potential buyers, to decide to purchase.

Despite these developments, the question remains, whether now is the right time, to buy a property. The average square meter prices for existing condominiums have been up since mid 2022 at about 13 percent decreased. This could be an attractive opportunity for potential buyers, especially in Munich, where the price per square meter is up to mid 2022 at average 9.475 Euro was and now up 8.290 Euro has fallen.

Given these developments, the question arises: To buy or not to buy? For those, who have the financial means, now could be the right time, to make a decision. The South Real Estate Association (IVD) assumes that, that the interest per year 2024 are expected to remain stable, What potential buyers should consider. In comparison, the square meter cost per year 1992 approximately 3.000 Euro, However, the effective annual interest rate for construction loans at that time was 9,71 percent.


CategoriesReal estate markets in the Munich metropolitan region

Tapping into real estate trends: Analyze market data using relevant graphics

The real estate market is constantly evolving, which is why it is essential for professionals in the industry, Stay up to date with the latest trends and insights. In a rapidly changing market, access to accurate and relevant data is critical to making informed decisions. But how can you effectively analyze and understand market data given the vast amount of information available? This is where graphics come into play. In this blog post, we will dive into and explore the world of real estate market data research graphics, how they can help you, to take advantage of the latest trends and gain valuable insights. the times are over, where you had to sift through endless spreadsheets and try, decipher complex statistics. With the power of visual representation, you can now analyze market data more intuitively and efficiently.Graphics have long been recognized as a powerful tool for conveying information. From eye-catching charts and graphs to interactive maps and infographics, these visual representations provide a clear and concise overview of complex data sets. By harnessing the power of graphics, real estate professionals can easily uncover patterns, Identify outliers and recognize emerging trends.Introduce yourself, You could quickly identify the neighborhoods with the highest rates of appreciation or pinpoint the areas, in which demand is increasing sharply. With the right graphics, you can visualize market data like this, that you can more easily identify opportunities and make data-driven decisions. No matter, whether you are a real estate agent, who wants to identify target markets, or an investor, who is looking for the next hot market, analyzing market data using relevant graphs is a crucial factor. In the coming sections, we will explore different types of graphs, which can be used for analyzing real estate market data. We will discuss the benefits of each type and provide examples, how they can be applied to real-world scenarios. So buckle up and get ready, Using the power of graphics for real estate market data research – your key, to stay ahead in the ever-evolving world of real estate.

The power of graphics when analyzing real estate market data

To stay ahead of the competition in today's fast-paced real estate market, requires access to accurate and relevant data. However, with the vast amount of information available, analyzing and understanding market data can be a daunting task. This is where graphics come into play. By using visual representations such as diagrams, Graphics and infographics allow real estate professionals to effectively analyze market data and gain valuable insights. Graphics have long been considered a powerful tool for conveying information. They provide a clear and concise overview of complex data sets and make it easier to identify patterns, Outliers and emerging trends. Instead of searching through endless spreadsheets and trying, decipher complex statistics, Professionals can now rely on visually appealing graphics, to quickly understand the market landscape.A type of graph, which is commonly used when analyzing real estate market data, is the line chart. Line charts are ideal, to track trends over time. For example, if you graph average home prices in a particular area over several years, you can easily recognize, whether prices rise or fall. This information is invaluable to both buyers and sellers, because they help them, to make informed decisions about it, when they enter or exit the market. Another useful graphic is the bar chart. Bar charts are great for comparing different categories or variables within a data set. For example, if you want to compare average rental prices in different parts of a city, A bar chart can visually represent this information in an easy-to-understand format. By analyzing the heights of each bar you can quickly identify, which neighborhoods experience higher or lower rental prices. In addition to line charts and bar charts, pie charts are also often used when analyzing real estate market data. Pie charts are ideal for showing proportions or percentages within a data set. For example, if you are distributing property types (with. B. Single-family homes, Condominiums, Apartments) want to understand in a particular area, A pie chart can provide a visual representation of the breakdown. This information can be valuable to investors, who want to identify market trends and target specific property types. Infographics are another powerful tool for presenting real estate market data. Infographics combine different graphics, Texts and images, to provide a comprehensive overview of complex information. They are visually appealing and can effectively convey key insights in a concise and engaging way. For example, an infographic could present the top neighborhoods with the highest appreciation rates, along with additional data such as average property prices and rental yields. To summarize, that analyzing real estate market data using relevant graphics is essential, to stay ahead in today's competitive market. Graphics provide a visual representation of complex data sets, making it easier to identify trends, patterns and opportunities. No matter, whether you are a real estate agent, who wants to identify target markets, or an investor, who is looking for the next hot market, Harnessing the power of graphics in market data analysis is a critical factor. By using line graphs, Bar charts, You can gain valuable insights from pie charts and infographics, that will help you, to make informed decisions and benefit from the latest trends in the ever-evolving world of real estate.

Use of infographics for concise data presentation

In today's fast-paced world, attention spans are shorter than ever. It is crucial when presenting real estate market data, Capture your audience's attention quickly and succinctly. This is where infographics shine. Infographics combine visual elements like diagrams, Graphics, Icons and images with minimal text, to present complex information in an easy-to-understand format. They are visually appealing and captivate the viewer, by breaking down information into bite-sized pieces.One of the main benefits of using infographics to present data is their ability, simplify complex concepts. By condensing large amounts of information into visually appealing graphics, infographics make things easier for the viewer, Understand important findings at a glance. This is particularly important in the real estate industry, where market data can be overwhelming and difficult to interpret. Another advantage of infographics is their versatility. They can be used in different formats, for example for printing materials, Websites, Social media posts and presentations. This flexibility allows real estate professionals, reach a wider audience and communicate their message effectively across different platforms. Additionally, infographics are highly shareable. In today's digital age, social media platforms play a significant role in disseminating information. Infographics are more likely to be shared and go viral than long text-based articles or reports. By creating visually appealing infographics, that highlight important market trends or insights, Real estate professionals can increase their online visibility and attract potential customers or investors. When designing an infographic for data presentation, it is important, to keep the design clean and uncluttered. Use colors strategically, to highlight and ensure important information, that the text is concise and easy to read. The visual hierarchy should direct the viewer's attention through the infographic and lead him from one important point to another. In summary, it can be said, that infographics are a powerful tool for presenting real estate market data in a concise and engaging way. By condensing complex information into visually appealing graphics, infographics make it easier for viewers, quickly understand important findings. Their versatility and shareability further increase their effectiveness in reaching a wider audience. Real estate professionals, that leverage the power of infographics in data presentation, will stand out from the competition and communicate their message effectively in today's fast-paced digital world.

Conclusion: Harness the power of graphics for data research in the real estate market

To stay ahead in today's competitive real estate market, is access to accurate data and ability, to analyze them effectively, necessary. Graphics play a crucial role in this process, by providing visual representations, that simplify complex information.By using line graphs, Bar charts, Pie charts and infographics can provide real estate professionals with valuable insight into market trends, -patterns and opportunities to win. These graphs enable intuitive and efficient analysis of market data and enable professionals, to make informed decisions.The power of graphics lies in their ability, Present data clearly and concisely. Instead of searching through spreadsheets and trying, decipher complex statistics, Professionals can rely on visually appealing graphics, to quickly understand the market landscape. Whether it's tracking trends over time with line charts or comparing variables with bar charts, graphs provide a visual overview, which simplifies the analysis process. Infographics go one step further, by condensing large amounts of information into visually appealing designs. By combining diagrams, Graphics, Using icons and images with minimal text, infographics present complex concepts in an easy-to-understand format. They captivate viewers and provide important insights at a glance.Real estate professionals, that utilize the power of graphics in market data research, gain a competitive advantage. You can spot emerging trends, Identify opportunities and make data-driven decisions with confidence. No matter, whether you are a real estate agent, who wants to identify target markets, or an investor, who is looking for the next hot market, Analyzing market data using relevant graphics is essential. In summary:, that you should not underestimate the power of graphics when analyzing real estate market data. Make use of line charts, Bar charts, Pie charts and infographics, to gain valuable insights, that will help you, to confidently navigate the ever-evolving world of real estate. Stay up to date, by leveraging real estate trends by analyzing market data using relevant graphics
CategoriesReal estate markets in the Munich metropolitan region Munich

New opportunities on the Munich real estate market: Falling prices present attractive opportunities for buyers

The real estate market in Munich, which was once known for its rising prices, experiences a pleasant change. Current data from the real estate umbrella association IVD Süd shows a significant decline in property prices in the Bavarian capital. This development opens up new opportunities for potential buyers and creates a dynamic environment on the Munich real estate market.

A paradigm shift in the market

For decades, prices for Munich real estate have doubled every seven years, driven by the low key interest rate. But with the challenges of the pandemic and interest rate increases by central banks, market events began to change. since autumn 2022 we are experiencing a paradigm shift: The prices for apartments and houses in Munich are falling, and in all positions and qualities. This creates a new reality in the city's real estate market.

Opportunities for buyers and investors

Falling prices present an excellent opportunity for buyers, to acquire attractive properties. The current price reductions of 5 until 5,4 percent for existing properties and even 6,9 percent of new apartments make purchasing real estate in Munich more affordable than ever. Potential investors can now invest in high-quality real estate at a lower price and at the same time benefit from Munich's attractive location and infrastructure.

Adaptation and optimism

Sellers and market participants are adapting to these new market conditions. Adjusting the price expectations is crucial, to meet current requirements. This opens up new opportunities for the real estate market: innovative concepts, Energy-saving new buildings and future-oriented renovations are becoming more important and create a dynamic offer for buyers.

Outlook for a promising future

The coming months promise a positive outlook for the Munich real estate market. The falling prices and the adaptability of market participants create a dynamic and opportunity-rich atmosphere. Buyers can look forward to attractive offers, while sellers have the opportunity, convince through innovative approaches and creative solutions.

The Munich real estate market is flexible and future-oriented. Current developments not only offer room for optimism, but also for new opportunities and exciting investments in the future of this vibrant city.

CategoriesLaw & regulations

Current conversion ban in Munich protects tenants

Munich has a new measure for 01.06.2023 seized, to strengthen the protection of tenants. A conversion ban for apartments has come into force with immediate effect. This rule aims to do that, to restrict the conversion of rental apartments into condominiums and to protect the existing rental market.

The conversion ban comes at the right time in view of the tense housing situation in Munich. Rising rents and the scarce availability of housing have led to this, that many tenants have difficulties, find decent and affordable housing. The conversion ban is intended to protect tenants from displacement, by maintaining the stock of rental apartments.

According to the conversion ban, it is no longer possible for owners of rental apartments in Munich, easily convert them into condominiums. This will prevent, that landlords are taking apartments out of the rental market and selling them as condominiums instead. This offers tenants a certain security and stability, as their homes will be preserved for the long term and they will not face the challenge unexpectedly, to find new accommodation.

The conversion ban in Munich is an important step, to improve tenant protection and stabilize the housing situation in the city. It is part of a comprehensive package of measures, that aims to, to obtain affordable housing and protect the interests of tenants.

Tenants in Munich can now breathe a sigh of relief, since the conversion ban offers them a certain security and protection. The city is sending a strong signal against rent increases and displacement and is committed to a livable living situation for all residents.

residential building munich
CategoriesLaw & regulations Munich

Ban on conversion into condominiums in Munich & region decided

The Free State of Bavaria leads to 01.06.2023 a conversion ban for rental apartments. It applies to 50 Municipalities whose housing market is classified as tight. In addition to the state capital Munich, the following cities fall: Dachau, Fürstenfeldbruck, Germering, Puchheim and Grafing, as well as the municipalities like Eching, Unterfoehring, Her, Höhenkirchen-Siegertsbrunn, Unterhaching, Kirchseeon, Markt Schwaben and Münsing.

Houses with up to 10 residential units.

The prohibition on conversion is initially limited to 31.12.2025.

termination for personal use
CategoriesLaw & regulations

The most important thing about termination for personal use

Termination for personal use is one of the ordinary termination rights according to § 573 Abs. 2 Nr. 2 BGB, here it says i.w.S. “The landlord can only cancel, if he has a legitimate interest in the termination of the tenancy. […] In particular, the landlord has a legitimate interest in the termination of the tenancy, if the landlord uses the rooms as an apartment for himself, requires his family members or members of his household […].

family members or. relatives are in a straight line. in sidelines up to 3. Degree relatives as well as in-laws up to the second degree, z.B. the parents, the children, that single, the siblings, the biological nieces and nephews as well as the brother-in-law of the landlord, as well as the spouse, fiancee, life partner, stepchildren and in-laws. For all other family members, social contact and moral ties are important, e.g. which justify maintenance payments.

letter of resignation

  • The personal requirement must be specified in the letter of termination. This means it has to be the person, who uses the property are named.
  • The landlord must explain comprehensibly and reasonably, why he needs the property. If the landlord has several alternatives, the justification must be based on the property to be terminated. The justification is often a point of contention.
  • Depending on the existing term of the rental agreement to be terminated, the notice period can be up to 9 months (ab 8 years rental period) be. At 5 years is the notice period 3 Sweet, at 5 years rental period to six months.

Any notice of termination for personal use must be justified. If it turns out in a legal dispute, that the dismissal was unlawful, claims for damages in favor of the tenant can be derived from this.