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Eviction doesn’t scare Berlin Airbnb hosts

Airbnb users in Berlin told The Local that they wouldn't be put off the service, despite a court deciding that landlords could evict tenants who use it to sublet their apartments.

Eviction doesn't scare Berlin Airbnb hosts
A screenshot of the Airbnb website.

"I still do it. I don't think it will stop people. There are so many hosts in Berlin and worldwide“, said Emma Freeman, a freelance artist.

"Plus Berlin is so anonymous, I don't think my landlord will find out.“

In a recent decision, the state court of Berlin reinforced earlier rulings that subletting a rented apartment on Airbnb constituted such a "severe breach of contract“ that a landlord could not reasonably be expected to continue the contract until the period where it can be terminated.

While the short-term financial rewards tend to outweigh the threat of eviction for many sub-letters, some say they mitigate their risk by not subletting their apartments too often.

"In many ways it does discourage me as I'm obviously not looking to go to court.“ Mary Vincent, a hostel employee, said. "So I just keep my renting at a minimum. Just when I think, 'hey, it's busy in Berlin, maybe I can make half my rent in a few days.'“

Frenyo had similar thoughts.

"I don't do it too much. Just 1-2 weeks every 1-2 months. When I'm travelling anyway. It's a good way to pay flights, she said. "if I had a lot of money, I wouldn't do it. It's strenuous to keep having to pack away your private things.“

That a tenant advertises his apartment online after being warned by his landlord not to do so is enough grounds for eviction, even without the apartment actually being occupied by Airbnb users, according to the court press release on its decision.

This would be an "unmistakeable“ expression of the intent to carry on renting the apartment to tourists "against the will of the landlord“.

Naming someone else in an Airbnb ad as the "host" for the apartment is also unlikely to get the tenant off the hook, as the courts would view simply view the third party as an extension of the tenant.

Harsh rules or no, these are still dependent on a landlord's ability to enforce his contract. Vincent said she knows what she would say if she is ever confronted.

“I've decided my landlord isn't exactly the most responsible or responsive person either”, she said. “If he ever said anything, I would say, 'well, why didn't you answer my emails about how our front door doesn't close and people stealing mail?'”

The court ruling follows the sharpening of short-term rental regulations to deal with a housing shortage late last year, which required those wishing to rent their apartments to tourists to register with the Berlin Senate, who would then grant or deny permission to do so.

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RENTING

Reader question: Can I Airbnb my German flat during Euro 2024?

The UEFA European championship will be taking place in 10 cities across Germany this summer. If you live in one of them, are you allowed to make a bit of extra cash by renting out your space?

Reader question: Can I Airbnb my German flat during Euro 2024?

Nearly three million football fans are expected to descend on Germany for the UEFA Euro tournament this summer. A total of 10 cities across Germany will field matches for the Euros.

This map on UEFA’s website shows the German cities where games will be taking place during the tournament, which runs from Friday June 14th to Sunday July 14th, 2024.

The event has many people wondering if they could earn some extra cash by renting out their homes to tourists. Here’s how you can prepare to rent out your home and stay in line with the rules. 

READ ALSO: Euro 2024: Germany to sell cheap train tickets for fans attending games

Can I put my home on rental platforms like Airbnb in Germany?

Yes, Airbnb is not outlawed in Germany. But depending on the state there may be some additional regulations to keep track of. 

What rules do Airbnb hosts in Germany follow?

All rental hosts are required to collect and retain information about guests who stay at your property for three months or less. Hosts can either purchase reporting certificates online or create certificates themselves to meet this requirement. If you retain the guest data yourself, you will be required to comply with all data protection laws like the European General Data Protection Regulation (GDPR). 

READ ALSO: What to know about renting out your home as an Airbnb in Germany

Depending on the state and city, local authorities may have additional requirements for rental hosts. 

The tournament kicks off in Munich. The Bavarian city’s regulations allow you to rent your primary home to guests for a combined total of eight weeks per calendar year without a permit. Still, you could run into trouble if more than half of the floor space is rented out without a permit.  

Berlin has strict regulations regarding short-term rentals. There are no limits for primary residences, but you are required to receive permission from district offices. The city introduced a registration system for anyone interested in renting out part of their home for a short term period. 

If less than half of the space will be rented out, you’ll need to update the relevant district authority of your plans to receive a registration number that you must include when advertising the property. You are required to obtain a permit if you plan to rent more than half of your home. 

READ ALSO: Could a landmark court ruling help solve Berlin’s housing crisis?

Hamburg also has implemented a registration system to monitor the number of holiday rental homes listed on sites like Airbnb. It doesn’t cost money to get a registration number, and you are allowed to rent out a room for eight weeks or less per year. 

Apartments in Hamburg's Eimsbüttel area.

Apartments in Hamburg’s Eimsbüttel area. Photo: picture alliance/dpa | Marcus Brandt

Can I rent out my flat if I don’t own it?

If you’re renting a property in Germany, subletting without permission can get you in trouble with the law. Tenants interested in subletting their room or apartment are required to get written permission from their landlord before they can rent their space on platforms like Airbnb and Homeaway. 

Do different rules apply to second homes?

Yes, second homes, or places you live in for less than half of the year are governed by different guidelines. 

In Germany, secondary residences cannot be rented out for more than 90 days per year. If you live in the flat you may be allowed to rent it out during periods of absence (i.e., when you are travelling), so long as you don’t change the main function of the home to renting. 

What about taxes?

German tax law requires rental income to be taxed alongside other incomes. If you receive income in Germany from short-term lets, you are legally required to report the income amounts and file a tax return

Still, there are a few exceptions. If your rental income in a year is below €520, there are no taxes charged. But if your rental income exceeds €520 then you will be taxed on the entire amount. Of note, tax only considers income to be the profit retained after expenses are deducted. 

If you don’t intend to make renting your property a habit, you may be able to classify the income as a “hobby” by the tax office. Under this classification, if you end up bringing in an income it doesn’t have to be taxed, but you also cannot claim any expenses or losses. This policy does not apply to unlimited rentals or properties charging rent at 66 percent of other local rent prices.  

Rental property may also be subject to VAT like any other business. But good news, if your rental income does not exceed €17,500 and you don’t expect to earn more than €50,000 in a year, you are not liable for VAT. 

What happens if you break the rules?

You can face eye watering fines of up to €500,000 depending on the state you live in. Some cities like Frankfurt are cracking down by employing full time “Airbnb hunters” to look for illegal listings of homes and furnished residences online.  

Note that laws are constantly changing, so be sure to check your state’s website for up to date information on short term rental regulations.

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