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Germany to subsidise landlords who offer affordable homes

Landlords who rent out properties for less than the market rate are set to get lucrative tax breaks in future, according to new plans to boost social housing in Germany.

Published: 5 June 2024 11:34 CEST
Berlin prenzlauer Berg
Flats in the Berlin district of Prenzlauer Berg. Photo: picture alliance/dpa | Monika Skolimowska

As the government battles to keep rents affordable in Germany’s ongoing housing crisis, a scheme to boost social housing is set to be reintroduced. 

Echoing a previous initiative that was scrapped in the early 1990s, the non-profit housing law aims to subsidise companies that provide affordable living space on a long-term basis. 

“The non-profit housing scheme is back!,” Housing Minister Klara Geywitz (SPD) told the Stuttgarter Zeitung on Wednesday.

“I am delighted that this important project from the coalition agreement has been successfully implemented.”

According to the regional newspaper, the new instrument is part of the annual tax bill that is set to be voted on in cabinet in Wednesday.

READ ALSO: Can converting offices create housing in Germany?

If the law passes unamended, social enterprises, associations and charitable foundations would be able to provide subsidised housing and benefit from extensive tax breaks. 

To qualify for financial support, landlords must offer their properties permanently below the market rent and make these affordable properties available for people on lower incomes. 

The income limits have been set so that around 60 percent of households in Germany will be able to benefit from the new non-profit housing scheme, said Geywitz. The government expects at least 100 companies to take advantage of the subsidies and provide affordable living space for 105,000 tenants.

“In addition to social housing construction, we are creating another strong pillar for more affordable housing in our country with the public housing benefit,” Geywitz. “This is a good day for all tenants.”

Housing shortages

Tackling Germany’s housing crisis was one of the key manifesto pledges of the centre-left Social Democrats (SPD) when they became the largest party in government in 2021.

In the coalition pact of the SPD, Greens and Free Democrats (FDP), the parties promised to build 400,000 new homes a year, with 100,000 affordable homes among them. 

So far, however, the government has repeatedly failed to meet its targets, blaming sluggish construction rates on high building costs and a lack of skilled labour. 

READ ALSO: Why are Berlin rents soaring by 20 percent when there’s a rent brake?

In 2022, around 271,000 of the planned 400,000 new homes were built, with only 20,000 of these earmarked for social housing. 

According to research carried out by the Pestel Institute in Hannover, Germany currently needs around 800,000 additions homes to keep up with demand. 

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PROPERTY

Is renting a flat ‘without Anmeldung’ illegal in Germany?

In today's tough housing environment, it's growing more and more common to see flats rented out without the right to register - or 'Anmelden'. The Local looks at whether this is legal under German tenancy law.

Published: 27 June 2024 15:34 CEST
Is renting a flat 'without Anmeldung' illegal in Germany?

In Germany, Anmeldung – or registration – is an essential part of the bureaucratic process, and often the first step you need to take after moving to the country.

Whether you’re opening a bank account, obtaining a residence permit, or even just getting a library card, the Meldebescheinigung, or certificate of registration, is an absolutely crucial document.

But increasingly, there seems to be a trend of rooms and flats being advertised online with the words ‘ohne Anmeldung’ – that is, without the ability to register. If you, like many renters in Germany, are seeing these words far too often, here’s what you need to know about your rights.

What does the law say about it?

According to Germany’s Bundesmeldegesetz, or Federal Registration Act, every resident in the country is required to register their primary address with their local Bürgeramt, or citizens’ office, within two weeks of moving in.

In order to do this, you’ll need what’s known as a Wohnungsgeberbestätigung, or confirmation of residence, which verifies that you’ve moved into the property either as a main tenant or subletter. 

READ ALSO: How to understand the German ‘Anmeldung’

Is my landlord required to allow me to register?

According to Wibke Werner, head of the Berlin Tenants’ Association, landlords are required to provide a certificate of registration to all of their tenants. 

“In order for tenants to fulfil their registration obligation and register their place of residence with the relevant registration authority, they require a so-called landlord’s certificate of residence,” Werner says.

“The landlord is therefore obliged to confirm that a tenant has moved in with the relevant registration authority.” 

The Federal Registration Act, which came into effect in November 2015, mandates that landlords furnish their tenants with the Wohnungsgeberbestätigung within two weeks of the move-in date.

Failure to comply can result in fines for the landlord, which can be as high as €1,000.

The confirmation must include:

  • The name and address of the landlord
  • The move-in date of the tenant
  • The address of the rented property
  • The names of all persons moving in

On the flip side, landlords also have the right to check who is currently registered at their property to make sure nobody is living there who shouldn’t be.

READ ALSO: What you need to know about the German rent brake 

What if I’m a subletter? 

Though this is an area that confuses many people, the rules are actually pretty simple: as a subletter, the main tenant or Hauptmieter(-in) becomes your landlord and should supply you with the certificate of residence instead. 

However, this can become tricky if the main tenant is subletting a room in the flat – or indeed the entire flat – without the landlord’s authorisation. 

A new tenant signs their rental agreement.

A new tenant signs their rental agreement. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

“If tenants sublet the flat, they need the landlord’s authorisation,” Anja Franz of the Munich Tenant’s Association told The Local.

“If the tenant sublets without this authorisation and the landlord becomes aware of this, he can give the main tenant notice to quit after issuing a warning. I assume that the tenants are afraid that their landlord will find out that they are subletting the flat.”

READ ALSO: How to sublet your apartment in Germany

According to Franz, it doesn’t matter if the tenancy is a long-term sublet or for a restricted period: you are obliged to register in both cases, and you are also entitled to receive confirmation of that tenancy. 

Tenants’ information portal ProMietrecht have a handy template for a confirmation of residence certifcate on their website that you can offer to the main tenant. 

What can I do if the main tenant or landlord refuses to let me register?

If you’re in the tough situation of dealing with an incooperative landlord or main tenant, it’s important to first know that German tenancy law is on your side.

Though it can be intimating to approach the person renting a property to you, there are some steps you can take to try and secure your Meldebescheinung:

  • Communicate openly: Before taking any other steps, try having an open conversation with the landlord or main tenant. Let them know that they are obliged to support you in registering your tenancy and that they could face a fine or other ramifications if they refuse to help. Remind them that having the Anmeldung is crucial to your life here in Germany.
  • Offer assistance: It can move things along faster if you supply any relevant documents the landlord may need, such as a template of the certificate of residence. If the main tenant is subletting without the knowledge of the landlord, you could also make them aware that having a subletter is also generally permissable in Germany – provided they have a good reason to do so. That may convince them to take the right step and request permission from their landlord. 
  • Get legal advice: Germany has an excellent system in place to support tenants’ rights, meaning you don’t have to find a lawyer immediately. Instead, becoming a member of a tenants’ association and seeking their advice can give you a good overview of both your rights and any steps you can take to secure proof of residence. 
  • Approach local authorities: Another option is to be transparent with your local Bürgeramt and inform them of your situation. While they won’t be able to help with enforcing the law directly, they may be able to advise you on what steps to take in the meantime. 

Have you struggled to find an apartment with the right to register? Should there be tougher rules to clamp down on landlords who don’t let tenants register? We’d love to know your thoughts. 

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