Four scams to be aware of while navigating Germany's rental market
According to a report by the Federal Criminal Police Office (BKA), Germany saw a 25 percent increase in rental fraud between 2020 and 2023.
Many of the victims are recent arrivals in the country, often at a severe disadvantage because they are unfamiliar with German law, unsure of where they can turn for good advice, and may have a poor command of the language.
Putting aside the classic rental scam, in which people are
tricked into paying deposits for an apartment that doesn't exist
, or isn't actually available for rent, there are several other forms of rental fraud that have been seen more and more often in the German rental market.
These scams all have one thing in common – bad actors in the market selling themselves to desperate renters as knights in shining armour.
Here are four recent trends which anyone looking for an apartment in Germany should be aware of.
Illegal brokerage commissions
A growing number of rental agents are charging brokerage fees – effectively bribes – to eager renters.
According to data analysis by
SWR
, hundreds of apartments are being advertised on the messaging service Telegram for an average brokerage fee of about €1,700.
Germany's Housing Agency Act only permits a rental agent or broker (
Makler
) to charge a commission or brokerage fee (
Provision
) from the person who hired them.
If you have paid an inappropriate brokerage fee, the law generally allows you to try and claim the money back within a three-year period. However, this is only possible when the payments were documented.
Graham Pugh, a relocation expert and founder of BerlinRelo, told The Local that he would never advise one of his clients to pay a brokerage fee, or a bribe, to get a flat.
He stressed that there are still clean, offers to be found. Given the incredibly tight housing market in places like Berlin, however, he can understand why some apartment hunters ask themselves if just paying an illegal brokerage fee might be worth it.
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But buyers beware – you'll never be asked to do this for a legitimate apartment offer.
If you do decide to hire an agent to help you find a place to live, your broker is permitted to charge a finder's fee of no more than twice the flat's cold rent (
Kaltmiete)
plus VAT.
READ ALSO:
10 things landlords in Germany can never ask of tenants
A colourful apartment building in Berlin's Wedding district. Photo by Paul Krantz.
Corrupt rental markets on social media platforms
It's no coincidence that brokers soliciting illegal fees use messaging apps like Telegram and WhatsApp, which have become increasingly popular with scammers who can use the encrypted messaging services to cover their tracks and avoid oversight.
A case which came to light in Hamburg earlier this year, first reported by
Der Spiegel
, highlighted the way in which a WhatsApp group was used as a forum for selling rental agreements illegally.
A man who called himself Chris was in cahoots with a woman who went by Jenny, who worked for one of Germany's largest landlords in Germany.
According to the report, Chris and Jenny claimed they wanted to help people would who otherwise struggle to find an apartment – in return for a 'down payment' of €1,000 (to be paid in cash during the viewing).
They were effectively taking bribes in return for placing applicants in apartments.
'This practice is illegal,' said Rolf Bosse of the Hamburg Tenants' Association, commenting on the case. 'It violates tenancy law."
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Platforms like Telegram and WhatsApp, as well as Kleinanzeigen and Facebook, are also popular with scammers who sometimes ask for advance payments for non-existent flats, or collect peoples' documents and commit identity theft.
The Hamburg police are aware of one case in which employment data offered by a flat seeker was used by a fraudster to divert their salary into a different account.
Graham Pugh confirms that he tells his clients to avoid Kleinanzeigen and social media sites.
Sticking to offers from verified renters (
verified anmieter)
on Immoscout, rather than using other platforms or going for private (
Von Privat
) listings is the best way to ensure that you avoid potential scams, Pugh says.
"I always say to my clients – not all
Von Privat
offers are scams, but all scams are
Von Privat
."
READ ALSO:
'Always be vigilant' - Expert tips for finding an apartment in Berlin
Landlords pushing 'commercial' leases on apartments
Traditionally, landlords don't love self-employed tenants.
When they do, it could be because they hope to get around rent control laws by letting some or all of an apartment under a commercial rather than a residential lease.
Under German law, commercial leases are subject to fewer legal protections than residential leases. The distinction between the two is based on the intended use of the premises.
Despite what some landlords claim, it is illegal to disguise a residential lease as a commercial lease. If the space is mainly used for living,
in previous court cases
charging commercial rents for residential units has been ruled unlawful.
READ ALSO:
How much are rents going up in German cities?
Finding an apartment in Germany's big cities like Berlin or Hamburg can be exceptionally difficult. Photo by
Alicia Christin Gerald
on
Unsplash
Fraudulent tenants' associations
Numerous tenants' associations (
Mietervereine
) exist in Germany to help tenants settle disputes with landlords, challenge exploitative contracts, and put pressure on landlords to fulfil their commitments (by carrying out repairs, for example).
Not all
Mietervereine
are the same, however.
Most are worth their weight in gold, but – even here – Germany's rental market madness has attracted its share of bad actors.
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A recent
ARD
report uncovered evidence of commercial enterprises presenting themselves as local tenants' associations and pretending to offer the same services.
Before deciding to become a member of a particular tenants' association – and paying the sign-up fee – make sure to look at what people have been saying on review platforms.
READ ALSO:
10 essential tips for avoiding rental scams in Germany
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