SHARE
COPY LINK
For members

PROPERTY

Moving house in Germany: 7 things you need to know about setting up utility contracts

If you’ve just moved into a new place in Germany, the first thing you’ll want to do is get your basic utilities like energy and Internet sorted. Here's what you should know.

A gas metre in a Berlin flat
A gas metre in a Berlin flat. Photo: DPA

There are about a million studies out there that have found moving is one of the most stressful life events out there – and even more stressful than divorce. For anyone who’s experienced moving in a foreign country, these stats won’t come as much of a surprise. 

To minimise stress after moving into your new pad, it’s a good time to think about your new energy, gas and internet contracts as soon as possible. The good news is that this part is no way near as hard as sorting through years of accumulated junk or having a panicked car-boot sale hours before the move. Nevertheless, there are a few things it can be helpful to know before you .

1. Not everything is privatised 

If you’re from a country where there are countless providers for gas, water, internet, and electricity, it may come as a surprise to find out that, in Germany, the water supply is still owned by the state. This means that, if you move around in the same locality, you’ll be using the same water supplier as before – although different suppliers are responsible for different districts. 

For the most part, energy and gas are owned and run by private entities, but in recent years a few city states – most notably Hamburg and Munich – have brought their power grids back into public hands. The idea of renationalising the energy supply is currently gaining ground in Germany, but so far, this has only been done on a local level, so in most cases you’ll still be dealing with private energy providers. 

With companies competing for customers, you can expect to find numerous bonuses for switching or staying with an existing energy providers, which can include money off your bill in the second year of a contract, or free gifts such as bikes an electronics. 

READ ALSO: The things you need to watch out for when you move house in Germany

According to Check24, two people currently using an average amount of electricity per year can currently expect to pay around €50 per month for their contract, and anywhere from €20-40 for their internet and landline. Gas for a two-person household, meanwhile, could set you back around €65 per month. 

Moving can be a stressful experience, but is perhaps more fun with a dog. Photo: DPA

2. You may need to give a lot of notice to cancel old contracts 

If you’ve opted for a long-term contract at your old apartment, you’ll likely have to observe a minimum notice period (or ‘Kündigungsfrist’) when you cancel it. For 24-month contracts with internet providers such as o2, this can be anywhere between four weeks and three months, after which time the contract will automatically renew for another 12 months.

Energy companies operate much the same way as internet providers. When you sign a contract with them, they usually stipulate a minimum contract period of 12-24 months. Once again, the notice period can be incredibly punishing for the disorganised, ranging from four weeks to three months before the end of your contract period. 

When signing up with a new provider, it’s a good idea to read the small print or ask a German-speaking friend to look over the T&Cs for you. If you’re not sure whether you’re going to be in your latest flat in the long-term, it could work out cheaper to opt for a slightly pricier, but much more flexible, rolling contract instead. 

3. A lot depends on your rental contract

Before you rush to a price-comparison website, it’s worth checking whether your landlord or letting agent has already taken charge of organising an energy or gas supplier. 

In many cases, your energy provider will be chosen by your landlord for the entire building, and you’ll receive a summary of utility costs at the end of each year. This document, which is known as a ‘Nebenkostenabrechnung’ (a summary of additional costs) can tell you whether you’ve overpaid and are in line for a refund (yes!), or whether you’ve used more energy than expected and will be paying more next year (uh, oh). 

In almost all cases, you’ll be expected to organise your internet and landline provider yourself, and in some, you’ll also need to take charge of organising your own energy. 

If you’ve just bought your own property, you may have the option to transfer the old tenant or owner’s contract over to your name. Most people, however, prefer to just start from scratch and scour around for the best deal. Which brings us to our next point…

In recent years, Germany has become a mecca for sustainable electricity, with 46% of the country’s energy coming from renewable sources in 2019. With a generous dose of state subsidies poured into this sector, choosing green energy – or Ökostrom – can also be an incredibly cost-effective option, generally costing the same or less than the environmentally unfriendly options.

If you look at the websites of eco-friendly energy providers such as NaturStrom, Greenpeace Energy or Entega, you can get an estimate of your annual costs and check out any bonuses you can get for switching, such as free bicycles, tablets or money off your next bill.

5. Getting set up is insanely simple

Unlike many aspects of German life, getting started with a new electricity, gas or internet provider is surprisingly simple. Much like in the UK or USA, price comparison sites can make it easy to get a good deal and find a new provider in minutes, with many expats using sites like Check24.de or Wechselpilot.com.  

“I find changing electricity companies very easy and do it every year to get the best offer possible,” says Paul Bitmead, who lives near Hanover. “I use Check24, but there are other places to do it. Speaking German is, of course, an advantage and if – you are going to be here a while – a must.”

The process of signing up with an energy provider online takes about five minutes, and you’ll need to supply the company with some details, including your bank details and home address. They’ll also ask you for the number on your electricity meter (normally located in the hallway), so they can measure how much energy has been used previously, and how much you’ll need to pay in the future.

READ ALSO: Seven things you should know when looking for a flat in Berlin

6. Yes, there is such a thing as “default” energy

If you don’t take any steps to sign up with a new energy or gas provider after moving into a new house or cancelling an old contract, you won’t find yourself reading by candlelight – but you may find yourself saddled with a pretty hefty bill. 

In Germany, tenants or property owners who don’t sign up for gas or electricity contracts themselves are automatically put on a Grundversorgung, or “default” contract with a local provider – often at a much higher cost than they would otherwise pay. 

That’s exactly what happened to Alisa Le, an expat in Frankfurt who got stuck with a provider she couldn’t locate. “When my landlord cancelled the old contract, it reverted to the local de facto provider,” she said. “It was impossible to find out who that de facto was as well – and our new provider, when reaching out to that old provider, was told we were not with them. It was a whole mess for about two months.”  

7. As always, it pays to shop – and ask – around

Doing some research before signing up for your internet, gas and electricity contracts can really pay off in the long run – and not just financially.

While electricity in Germany tends to be highly reliable, internet speed and connectivity can fluctuate wildly across different regions and providers. With many providers insisting on a 12- or 24-month contract, this means you could get lumped with an unreliable connection for longer than you’d like.

For Martin Bruus Hansen, an expat who recently moved from South America to Frankfurt, Germany’s network coverage has been a constant disappointment. 

“With internet and phone coverage, let me tell you that there is better and faster connection in El Salvador than there is in Germany,” he said. “We have to restart our router several times weekly and sometimes our connection drops to 20% of our contracted speed.”

By asking your neighbours which providers they’ve had luck with – and which to avoid – you’re much more likely to find yourself with an internet provider that you’re happy to stick with in the long term. You’ll also avoid awkward home office moments like getting booted out of Zoom calls time and time again.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

10 essential tips for avoiding rental scams in Germany

Rental scams are on the rise in Germany, and fraudsters are becoming more sophisticated than you may think. We spoke to a couple who were scammed in Berlin to put together tips to stay safe while house hunting.

10 essential tips for avoiding rental scams in Germany

When it comes to settling in Germany, one of the most stressful and difficult tasks you’re likely to face is finding a place to live.

With the country in the grip of an ever-worsening housing shortage, there aren’t enough rental properties to meet the high demand – especially in big cities like Berlin, Munich and Frankfurt – and the flats that are available can often stretch even the most healthy of budgets. 

With renters desperate to find affordable homes, crafty scammers have seized the chance to place fake ads on the market, often in dream locations with lower-than-average rents. 

While some of these scams may be easy to spot, others can be highly sophisticated, with fraudsters setting up professional-looking websites and even allowing hopeful tenants to view their properties in person.

Recently The Local reported on a Polish couple who lost around €7,000 through a rental scam in Berlin. The scammers had sublet a beautiful Altbau apartment in the popular district of Neukölln and created an advert for it via a fake letting agent website, then arranged for people to use a key box to view the property while the real tenants were away. 

READ ALSO: How sophisticated scammers are targeting desperate Berlin tenants

Despite checking the contract over with legal experts from their local tenants’ association, nobody saw anything out of the ordinary – that is, until they tried to access the apartment and found a family already living there.

So, how do you protect your hard-earned savings and steer clear of scammers while looking for a new home?

Here are 10 important ways to protect yourself from rental scams. 

1. Be alert to suspicious signs 

The key to avoiding scammers in Germany is to be fully clued up on the warning signs. Was the listing for the property uploaded in the middle of the night, is the advert thin on details or written in bad German or English, and does the offer feel too good to be true?

Though it would be nice to believe there are still cheap flats to be found, finding an attractive property at an overly reasonable price is usually a red flag. 

Hamburg

Modern apartments in Hamburg. Photo: picture alliance/dpa | Daniel Bockwoldt

If someone claiming to be a landlord contacts you out of the blue, that’s also your cue to run a mile. With so many people looking for housing, most letting agents and landlords will have more than people looking to rent their properties without needing to get in touch with people themselves. Anyone who does is more than likely to be a scammer.

2. Rule out landlords who say they live abroad

One of the major warning signs to look out for is a landlord who claims to be renting the property from abroad, or who says they are out of the country for other reasons, like a last-minute business trip.

That’s usually a scammer’s way of excusing the fact that they won’t be able to meet you personally or even show you the property before you rent it.

“When the country the landlord lives in appears then I would say there’s a really big chance this is a scam,” said Kuba Rudzinski, one of the victims of the Berlin-Neukölln rental fraud.

Even if the excuse seems plausible, your best bet is to ignore anyone who tries to sell you a story about living abroad and simply move on with your house hunt.

READ ALSO: Why Germany’s housing crisis is expected to drag on

3. Do your research online

Before committing to anything, take time to do some thorough research to scope out the property, landlord and letting agent. 

Running the pictures and text used in apartment listings through a search engine like Google will help you quickly identify stock photos and text stolen from other listings. For pictures, this is known as a reverse image search. 

A laptop

Photo by 2H Media on Unsplash

It’s also worth checking that any websites you’re sent to are fully functional and not copies of other letting agent sites, and that any email addresses match the website domain. 

READ ALSO: How much deposit do I have to pay when renting in Germany?

4. Visit the property and ask around 

Never agree to rent a property without seeing it in person first. Arrange a viewing and take the opportunity to ask questions about the property and the neighbourhood. 

Kuba also recommends speaking with the neighbours in the building to check if the property is genuinely being rented. 

“Go to the place before and ask the neighbours, is this flat really for rent? Because these people generally know,” he said. “You’ll need to convince yourself to do it of course, but just ask in the building, ask on the floor where the flat is.”

5. Don’t transfer the full deposit in advance

Advance payments for anything, whether it’s furniture, a deposit or getting a chance to view the property, should be considered a major red flag.

Under German law, you are usually only expected to pay the deposit by the start of the agreed rental contract – and certainly not several months in advance.

Euro notes lie next to some house keys on a table.

Euro notes lie next to some house keys on a table. Photo: picture alliance/dpa/dpa-tmn | Andrea Warnecke

You are also legally entitled to pay your three months’ deposit in three instalments on top of your first three months’ rent after moving in, so definitely be cautious of landlords that place pressure on you to transfer a large lump sum.

If you’re really concerned, look into alternatives for paying your deposit, such as Kautionversicherung (deposit insurance) or a Mietkautionssparbuch, where you open a bank account and pledge the amount to the landlord, rather than transferring the money directly. 

6. Insist on meeting the landlord or letting agent in person

If a landlord or letting agent refuses to meet you in person or insists on conducting all communication online, they’re probably not who they say they are. 

Insist on meeting face-to-face to verify their identity and ensure they have a legitimate connection to the property.

7. Avoid sending documents straight away 

Not all rental scams are about getting money from you directly: many scammers are simply after your personal details for the purposes of identity theft.

Be wary of providing personal documents or sensitive information before you’ve verified the legitimacy of the rental agreement, especially when it comes to things like passport scans or other forms of ID. 

READ ALSO: Five common rental scams in Germany and how to avoid them

8. Seek legal advice from experts

If you’re unsure about any aspect of the rental agreement or if something seems suspicious, seek advice from legal experts or tenants’ associations. 

However, be aware that this isn’t always a cast-iron guarantee that a tenancy is legitmate. Over the past few years, fraudsters have become increasingly sophisticated, even down to producing water-tight rental contracts for would-be tenants. 

An estate agent hands over keys to an apartment. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

According to civil lawyer Emilia Tintelnot, becoming a member of a tenants’ association can be a good way to get affordable legal advice, and it can also be helpful to set up legal insurance to ensure you can access help when you need it without having to pay lawyers’ fees up front.

9. Be wary of stereotypes 

Avoid making assumptions based on stereotypes or preconceived notions about someone’s gender or nationality, as this may cause you to overlook things you might otherwise see as warning signs.

In Kuba’s case, the fact that the fraudsters were German made them appear more legitimate in his eyes, as Polish people tend to see Germans as law-abiding and trustworthy. 

Be aware that scammers can come from any cultural background and may use a variety of tactics to deceive unsuspecting renters.

10. Keep an extensive paper trail 

Document all communication, agreements, and transactions related to the rental process, including phone numbers and any bank details provided.

According to the Berlin police, this type of evidence can be crucial for an investigation if you do suspect a scammer.

While evidence can differ across cases, “pictures, contact details used by the perpetrators, original documents, bank details with payment receipts” are particularly helpful for investigators, and could help the police stop the scammers for good. 

SHOW COMMENTS