What we provide – and what we do not
We broker properties as tangible assets on the basis of our licence under § 34c GewO (Gewerbeordnung, German Trade Regulation Act). We do not offer investment advice or investment brokerage within the meaning of the KWG (Kreditwesengesetz, German Banking Act), nor the brokerage of funds or other financial investments. Whether a property fits into your personal wealth and tax planning is a matter to discuss with your tax adviser and your bank.
Basic yield concepts
The gross rental yield relates the annual net cold rent to the purchase price. It is quickly calculated but says little about the actual return. The net rental yield is more meaningful: here, the incidental purchase costs are added to the purchase price, and non-recoverable costs such as management and maintenance are deducted from the rent.
The purchase price multiplier is also frequently cited, i.e. the multiple of the annual net cold rent paid for the property. All these figures are snapshots. Loss of rent, vacancy and interest rate developments can change the result considerably.
Location and tenancy agreement
Location determines lettability in the long term. Pay attention to transport links, employment, local amenities and the development of the surrounding area. In the Rhine-Main area, the sub-markets differ, in some cases considerably.
When buying a let property, the purchaser enters into the existing tenancy (§ 566 BGB – Bürgerliches Gesetzbuch, German Civil Code – "Kauf bricht nicht Miete", i.e. 'sale does not break a lease'). You should therefore carefully examine the rent level, service charge arrangements, deposit, rent arrears and any agreements on rent increases.
Budgeting realistically for maintenance
Roof, windows, heating and pipework have a limited service life. Plan reserves for them from the outset. For condominiums, the owners' association's maintenance reserve and the resolutions of the owners' meeting provide information on upcoming measures.
Ongoing effort as a landlord
A let property requires time: communication with tenants, repair orders, the rent account and the annual operating cost statement. You should honestly assess this effort before buying or budget for the cost of a rental management service. For the service charge statement, we offer VEASY (Vermieter-Abrechnung easy – landlord billing made easy), a solution accurate to the day and supported by receipts, with a tenant portal.
Frequently asked questions
Will you tell me whether a property is worthwhile as an investment?
We present the property data and key figures transparently. We do not give personal investment recommendations; these belong in the hands of your tax adviser and your bank.
What is the difference between gross and net rental yield?
The gross yield compares only the cold rent and the purchase price. The net yield additionally takes into account incidental purchase costs and non-recoverable running costs and is therefore more realistic.
Can I terminate an existing tenant's lease after the purchase?
Only within the framework of statutory tenant protection. A change of ownership alone is not a ground for termination. You should clarify the details with a lawyer.