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5 tips for successfully renting out real estate

Anyone who wants to rent out a property faces numerous tasks. It is not without reason that professional property management companies exist. Successful letting takes time and requires extensive know-how, which is often underestimated by many newcomers.

1.market, prices, and rules

Before you start renting out your property, you should find out about the local rental market. After all, the rental price is not set in stone. You can find out more about this in the local rent index or by consulting a local estate agent.

What is the local comparative rent? How much higher than this can the rent be for a new tenant? Is there a rent cap in your region? How do location, condition, amenities, and size affect the rent? The lease is just as important. If important points are missing or there are errors, this will be interpreted to the tenant's advantage.

2.renting out property with an agent

Important information in advance: The costs for the real estate agent can be deducted from your taxes. Even if there are currently many prospective tenants in some places, how do you find a suitable and solvent one? How can you filter out fake prospects or rent dodgers during viewings? A local, high-quality real estate agent knows from years of experience what to look for and what questions to ask to find a suitable tenant. They are also familiar with the current market situation and can help you set the right rent.

3.viewings and handover

Whether you opt for individual viewings or a mass viewing depends on your personal situation, your time, the condition of your property, and the number of interested parties. If you don't have much time but still don't want to hold a mass viewing, a professional real estate agent can take care of this for you.

When handing over the property, you should draw up a detailed report to avoid any disputes later on. An experienced real estate professional can also tell you what to look out for in particular.

4.if it's not a good fit

Due to strong tenant protection in Germany, it is not easy to part ways with a tenant or terminate the lease. If the tenant does not pay their rent, they must be given a warning before they can be evicted. This often ends in an eviction lawsuit. This process can be lengthy. Even for personal use, you can only terminate the lease if you or a close family member can prove that you are moving in. When selling the property, it may be cheaper to pay the tenant a certain amount to move out. This can be more financially advantageous than selling the property while it is still rented.

5. Taxes on rental income

Rent is included in your tax return as income, which is of course taxable. However, if they are below the threshold for taxable income when combined with your other income, the rental income is not taxable. This basic allowance is set by law and is revised annually. Please consult a tax expert for more information.

Are you looking for a property to rent or for your own use? Contact us! We will be happy to advise you.

 

Note

For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.

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

photo: © terroa/Depositphotos.com

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