1. Start
2. Guide Overview
3. Rental
4. Furnished Apartment Rentals: What Landlords Should Know

Furnished Apartment Rentals: What Landlords Should Know

More and more property owners are choosing to rent out their apartments furnished – whether for a limited time, to commuters, expats, or students. The short-term rental market is booming, especially in large cities. But what do landlords need to consider when offering a fully equipped apartment?

What Does “Furnished Rental” Mean?

A furnished apartment includes everything necessary for daily life – from bed and wardrobe to a fully equipped kitchen, dishes, lamps, and sometimes even decorative items. The key is that the tenant can move in immediately without needing to bring their own furniture.

In practice, we distinguish:

• Partially furnished apartments (e.g., only a kitchen)
• Fully furnished apartments (apartment with complete inventory)

This classification can also affect the rental agreement and tenancy law.

Advantages for Landlords

• Higher rental income possible, as furnished apartments often command higher rents.
• Wider target audience: Ideal for business travelers, students, or temporary housing.
• More flexible rental arrangements due to fixed-term contracts.
• Property value increase due to high-quality furnishings.

However, this also involves higher investments and a certain amount of maintenance – especially upkeep and wear.

Legal Basis for Furnished Rentals

In Germany, the regulations of the BGB also apply to furnished rentals. Tenant protection remains in place, except in the case of a private room in the landlord’s own household (§ 549 para. 2 BGB).

Important points:

• Termination protection: Legal termination protection generally applies to furnished rentals.
• Fixed-term rental contracts are only allowed under certain conditions, e.g., owner’s personal use after the rental period.
• Rent control applies to furnished apartments as well, but a furnishing surcharge can be added – it must be transparent and justifiable.
• Inventory list in the rental contract is recommended. This helps avoid misunderstandings.

An example: The surcharge should be based on the quality and number of the furnishings – a rule of thumb is 2% of the current value per month as a surcharge.

When Is This Model Worthwhile?

Furnished rentals are especially worthwhile in urban areas, near universities, large companies, or airports. But even in rural areas, there may be demand from project workers or hospital staff. The following target groups are particularly relevant:

• Commuters
• Expats & business travelers
• Students and interns
• People in transition or between homes

Important: The target group determines the furnishings and price level.

Tax Aspects

Income from furnished rentals counts as rental income and must be taxed accordingly. Depreciation (AfA) for furniture can also be claimed. A consultation with a tax advisor is advisable, especially if tenants change frequently.

FAQ – Frequently Asked Questions About Furnished Rentals

Do I have to ask for a deposit?

It’s not mandatory, but highly recommended. Up to three months’ net cold rent is common.

How do I document the condition of the furniture?

Ideally with a detailed inventory list and photos – both part of the rental agreement.

Can I insure the furniture against damage?

Yes, home contents insurance for landlords or inventory insurance may be a good idea.

How high can the furnishing surcharge be?

There’s no fixed legal rule, but it should be reasonable. A guideline is 1–2% of the current value of the furniture per month.

What happens in case of damage by the tenant?

In the case of gross negligence, the tenant is liable. Minor damage should be expected (wear and tear).

How long can I rent out on a temporary basis?

There is no exact legal limit, but the contract must state a valid reason (e.g., personal use).

Useful Information from Official Sources & Portals:

• German Tenants' Association (DMB)
• Federal Ministry of Justice – Tenancy Law
• Haus & Grund Germany