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Local Germany
28-05-2025
- Business
- Local Germany
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. Advertisement 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." Advertisement 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. Advertisement 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
Local Germany
03-04-2025
- Business
- Local Germany
'Always be vigilant': Expert tips for finding an apartment in Berlin
To describe the Berlin housing market as 'tight' feels like a massive understatement. Asking friends, or even strangers, if they have heard of any available apartments has become an unfortunate cliché, as have social media posts broadly seeking leads. Securing housing in Germany's capital city is a Sisyphean task, in which applicants compete against hundreds of others for the same rentals, and the use of online tools – like bots that alert you immediately about new online listings – has become commonplace. Even the best qualified applicants can expect to search for months before securing a suitable offer, and for those who face additional barriers (such as having little to no German skills, or having employment that is seen as less secure) the task looks next to impossible. All of that said, those who have either just landed in Berlin or need to move for any reason, can't afford to give up. The Local spoke with two experts about some best practices to apply to your housing search, be it in Berlin or another German city. Kevin Hiller, is a Berlin native and founder of Get the Flat, a service designed to help customers cut out the busy work of house hunting by applying to apartment listings on their behalf. Graham Pugh has lived in Berlin for seven years and helped clients relocate in Berlin for the last four. He founded BerlinRelo which helps a limited number of customers to complete the entire apartment finding process. Here are their top tips for maximizing your chances of success with your house hunt: Advertisement Set a realistic target They say beggars can't be choosers, and in Berlin's housing market, everyone's a beggar. That's not to say that you shouldn't hold out for an apartment that meets your needs and expectations. But if you wont settle for anything less than a beautifully renovated Alt-bau in Prenzlauer Berg at an affordable price… Well maybe that apartment is waiting for you in the afterlife. 'We try to educate our clients that there's more to Berlin than Kreuzeberg, Prenzlauer Berg, Friedrichschain and Mitte,' Hiller told The Local. 'There are also good options which are very well connected to the central regions, but the competition is far less.' Advertisement If you want to live near Prenzlauer Berg, you may find many more options not too far away in Pankow, for example. Next to Mitte there is also Wedding or Moabit. READ ALSO: 'Tense housing situation' - Why a Berlin renter can't be evicted for two years It may be helpful to think about the kinds of apartments that are more or less in demand. View of apartments in the Schöneberg district of Berlin, where you might annoy your neighbours by accident. Photo: picture alliance/dpa | Monika Skolimowska Pugh says that 3-room flats are 'a nightmare to try to find', adding that while they make up about 23 percent of the listings on offer virtually everybody wants one. Since working from home has become common, virtually every couple wants three rooms, he adds, including couples with a kid or couples with a dog, and also just high-income single people who want an office and a living room in addition to their bedroom. On the other end of the spectrum, one room apartments and studios make up the majority of the market, Hiller suggests, largely because they tend to be rented by students or young professionals that tend to move around more often. Advertisement Be the applicant that 'makes sense' for the apartment No matter what kind of apartment you're seeking, ultimately you'll be compared with several (if not dozens) of viable applicants. So you need to find a way to present yourself as the applicant that a landlord thinks is the best fit for the apartment. Pugh says as an applicant you should ask yourself, 'Do I make sense as the person most likely to rent this place long term?' To that end, he recommends avoiding applying to apartments that aren't aligned with your income level. German landlords generally won't consider anyone earning less than three times the rent monthly. 'Don't even go to the viewing [if your income isn't three times more],' Pugh told The Local. 'You're not getting the apartment and you're wasting time.' But he says you may also be ruled out for earning too much. If your income is significantly more than three times the monthly rent, landlords might assume you are more likely to move out soon for an upgrade. Put simply, your chances are best for apartments priced right around 30 percent of your income. READ ALSO: Munich vs Berlin - What's considered a good salary for foreign workers? Present yourself well Of course you'll want to be mindful of how you are presenting yourself, from your initial message to landlords through to the viewing and any follow up communications as well. Advertisement 'Around half of the apartments in Germany are rented out by private landlords,' notes Hiller, 'So it means they are actually interested in who this person is that's going to be renting their property.' He says it helps to include a personal note in your introduction message: 'It doesn't have to be an essay, but having a sentence or two about what you're doing outside of work can help.' He also suggests personalizing the message just enough to make clear that you actually read the listing, and are not just sending a generic copy/pasted message. When you are invited to a viewing, dressing up a bit is a good best practice. Hiller says you should try to ask meaningful questions: 'You can ask, for example, 'What kind of other renters are living in this property?'...Don't just ask, 'Where can I send the documents?'' Put your weaknesses up front Advertisement It may seem a bit counter intuitive, but leading with any potential weaknesses in your application may ultimately be to your benefit. Pugh shared the story of a woman who had done everything right in her interaction with a landlord at the viewing, but then asked at the last moment if it would be fine for her to bring her cat. She didn't get the offer. 'My advice would be to put the cat in your profile picture,' Pugh says. Of course, this may prevent you from landing as many initial viewings, but in the end it's saving you time that you can put toward flats where you have a fighting chance. Modern apartments in Hamburg. Photo: picture alliance/dpa | Daniel Bockwoldt Be mindful of scams Especially on the Berlin housing market, renters do need to be aware that scams are rampant and you're bound to come across a few during your search. The most obvious one to look out for is anyone asking you to send any amount of money before you have seen the place and signed a contract. The keys are NOT coming in the mail! But some scams involve simply collecting peoples' personal documents. 'We recommend very strongly never to send your personal documents before you've seen a place and are relatively confident it's a real offer,' says Hiller. READ ALSO: 10 essential tips for avoiding rental scams in Germany He adds that it is common to be asked for some personal information before a viewing, such as needing to fill out application forms, but copies of your passport, ID, or payslips aren't usually required before you've been to a viewing. (You may also want to watermark the digital copies that you share.) 'Always be vigilant because there are people trying to take advantage of the desperate housing situation in Berlin,' Hiller adds. Advertisement 'It's a full-time job' Finally, be prepared for the long haul – house hunting in Berlin tends to be a marathon, not a sprint. 'It's a full time job,' says Hiller. He added that it's important to set a pace for yourself that can be maintained rather than going all-in for a couple weeks and then burning out. READ ALSO: How the price of student housing compares across Germany Pugh compares the Berlin house hunt to a pie chart with portions representing time, money and luck – if you have more of one of them then you need proportionally less of the other two. 'So if you have all the time in the world, then you can have a really low budget and you don't even need as much luck,' he says. Alternatively, people with a lot of luck may find a flat through a friend or otherwise without spending much time or money at all. 'Strategy shrinks the whole pie chart,' Pugh says, adding that he effectively sells strategy. The advice contained above will hopefully give readers at least a little bit of a head start in terms of strategy. But you may also consider services like those offered by Get the Flat, BerlinRelo or others to make your flat hunt more strategic and therefore, hopefully, a bit less painful.
