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Renting Out Apartments – Tips for Owners and Landlords
Image source: Jakub Zerdzicki | Unsplash
Whether as an investment or for short-term rental: apartments are a popular form of housing – especially in urban areas or for an international target group. Anyone looking to rent out an apartment should be well prepared. In addition to opportunities, there are also legal and organizational challenges.
What Is an Apartment?
An apartment is typically a small, compact unit with 1 to 2 rooms, often including a kitchenette and bathroom. The living area is usually under 50 m². Types include:
- Single apartments
- Business apartments
- Serviced apartments
- Holiday apartments (only with a permit!)
Important: Apartments can be rented furnished or unfurnished – depending on the target group and purpose.
Who Is a Suitable Tenant?
Apartments particularly appeal to the following groups:
- Commuters
- Students
- Business travelers
- Expats and project workers
- Singles or seniors
Depending on the furnishing and rental period, tenant expectations will vary. Furnished apartments are more suited to short-term rentals, while unfurnished units are generally rented long-term.
Advantages of Renting Out Apartments
- High demand in urban areas
- Good returns due to space efficiency
- Flexible contract options
- Lower risk of rent default with shorter leases
- Easy to manage due to small size and limited furnishings
Especially interesting: Furnished apartments can achieve higher rental prices through surcharges – but only within legal limits.
Legal Basics for Renting Apartments
The regulations of the German Civil Code (BGB) also apply to apartments. This means:
- Termination protection generally also applies to small apartments
- Rent control applies in many cities – even for furnished apartments, with exceptions
- Rental contracts should always be tailored individually, especially for fixed-term leases
- Permit required: In many cities, short-term rentals to tourists must be officially approved
Tip: If you rent commercially or via platforms, make sure to check your federal state’s rules on misuse prohibitions ("Zweckentfremdungsverbot").
Renting Furnished or Unfurnished Apartments?
| Furnished | Unfurnished |
|---|---|
| Higher rental price | Long-term tenant commitment |
| Shorter rental periods possible | Lower administrative effort |
| Target group: expats, commuters, students | Target group: singles, seniors |
| More effort for cleaning & inventory | Less wear and tear risk |
An inventory list is mandatory when renting furnished, along with clear rules on deposits and utility costs.
Tip: Calling a unit an “apartment” doesn’t automatically mean commercial use – but frequent rentals with services may lead to a commercial classification by the tax office.
Useful Information from Official Sources & Portals:
FAQ – Frequently Asked Questions About Renting Apartments
- Do I need a permit for short-term rentals?
- In many cities, yes – especially for tourist rentals. Check with your local housing or building authority.
- How much rent can I charge?
- Rent control may apply depending on the city. Surcharges for furnishings are allowed but must be realistic and justifiable.
- Does rental law apply to apartments?
- Yes, all tenant protection rules also apply to small units.
- Can I rent apartments commercially?
- Yes, but it's complex in terms of tax and building regulations – you may need a business registration and official change of use approval.
- What must be included in the rental contract?
- In addition to the standard details, it is particularly important to include information on the apartment’s size and furnishings, the duration and type of rental, whether utilities are charged at a flat rate or in advance, and an inventory list if the apartment is furnished.
The article
Renting Out Apartments – Tips for Owners and Landlords
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Real estate
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