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RENTING

How a German ‘Mieterverein’ can help you reduce your rent

If you're renting in Germany, you may have heard about a tenants' association - or Mieterverein. But you may not be aware that joining one could help save you money in the long run.

Flats in Munich Altstadt
Flats in Munich's historic city centre. Photo: picture alliance / Matthias Balk/dpa | Matthias Balk

There’s a truism that applies to many areas of life in Germany: there are plenty of rules and legal protections, but the vast majority of people don’t know them.

This feels particularly real when it comes to the world of renters’ rights. As a nation that generally prefers to rent than to buy, Germany has a huge range of in-built protections for tenants – but that doesn’t always stop landlords from bending the rules. 

The best way to make sure you’re getting a fair deal is to try and get familiar with your rights, or enlist the help of somebody who knows them inside-out.

That’s where the concept of the Mieterverein, or tenants’ association, comes in. These member-only organisations are there to advocate for the rights of tenants, keeping illegally high rents and other dodgy practices in check for renters in Germany. 

These types of associations can be a life-saver for foreigners who may struggle with the German language and German law, and could even help you save money in the long run. 

What is a Mieterverein?

A Mieterverein, or tenants’ association, is exactly what it sounds like: an organisation that stands up for the rights of tenants. It works by offering affordable memberships for renters – usually costing somewhere between €50 and €100 per year – which is then used to provide legal advice and representation, as well as advocacy and lobbying work. 

Ultimately, the idea is about strength in numbers. Instead of a single tenant taking on a big landlord like Vonovia or Deutsche Wohnen, a collective approach gives renters both more bargaining power and more resources.

Following this principle, many of the regional Mietervereine have clubbed together to create tenants’ associations in their state, which ultimately belong to the Germany-wide umbrella association, the Deutscher Mieterbund (DMB).

There are 320 associations currently active in the DMB, with the largest being the Berliner Mieterverein with more than 190,000 members. This is followed by Hamburg, with 78,000 members, and Munich, with 63,000. 

READ ALSO: How foreign residents in Germany are winning rent reductions

Members rely on tenants’ associations to assist with anything to do with Germany’s tenancy law. That means poring over rental contracts, ironing out difficulties with landlords, challenging rent increases or overly high rents, and fighting unfair or illegal evictions.

Of course, one of the most compelling reasons to join is to keep high rents in check – and find out if you could be eligible for a reduction. 

How can a Mieterverein help lower my rent?

Though it may not always feel like it, the vast majority of areas with a tight housing situation in Germany are subject to fairly stringent rental controls, known as the Mietpreisbremse.

These controls were mandated in a 2015 law that has recently been extended to 2029. Though there are some loopholes, the rules generally dictate that cold rents should be no more than 10 percent above the average rent for comparable properties in the same neighbourhood.

READ ALSO: German rent brake to be extended until 2029: What you need to know

The ways for calculating this are complicated but all you really need to know is that they are based on something called the Mietspiegel: a huge table charting the average rent prices based on factors like a property’s size, location, age and facilities. 

Berlin prenzlauer Berg

Flats in the Berlin district of Prenzlauer Berg. Photo: picture alliance/dpa | Monika Skolimowska

One service tenants’ associations can offer is to compare your rent against the Mietspiegel to see if you’re being charged too much. 

To do this, they’ll look at your contract and ask you a series of questions about your rental property. If it turns out the rent is illegally high, Mieterverein lawyers can help you draft a letter to officially challenge your rent and ask for it to be reduced.

Some tenants’ associations also offer legal protection insurance (Rechtsschutzversicherung) as part of their memberships, which can help you deal with any issues that may arise with the landlord later on. 

What about annual rent increases?

In most cases, these can be disputed as well. Under the Mietpreisbremse rules, rents can be raised by a maximum of 20 percent in the space of three years. This can be good grounds to challenge a big annual increase in rent – but it isn’t the only way. 

The legal representatives at your local Mieterverein will be able to help you dispute increases in rent, as long as you don’t agree to these increases straight away.

Once again, the increases may be based on a shaky foundation of illegally high rents to start with, so it’s always worth getting everything checked over in full by a qualified lawyer.

It’s also worth keeping an eye on any issues with your apartment, such as broken fixtures and fittings, because these can be grounds for a rent reduction until the problem is fixed.

READ ALSO: How to get a rent reduction for problems in your German flat

Advisors at the Mietervereine will not only be able to tell you what are grounds for a Mietminderung (temporary rent reduction), but also how much you could be entitled to. 

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For members

FRANKFURT

What’s considered a good salary for foreigners in Frankfurt?

Many international residents consider settling in Germany's financial capital. We look at what's considered a good salary in Frankfurt.

What's considered a good salary for foreigners in Frankfurt?

Frankfurt am Main is one of the most diverse cities in the country.

Of the some 800,000 people who live in Frankfurt, almost a third (just under 31 percent) had a migration background in 2022, according to the latest figures from Statista.

As Germany’s bustling financial hub – and as the home to the country’s largest airport – there are plenty of job opportunities, including for English speakers. 

Banks aside, there are roles in IT, biotechnology and life sciences, logistics and creative industries. 

Some notable employers are Deutsche Bahn, Deutsche Bank, KPMG, Lufthansa and the Goethe University Frankfurt.

All of this makes it a draw for international residents looking to settle in Germany. 

READ ALSO: Is Frankfurt a good place for foreigners to live?

But when it comes to wages, trying to decide what’s considered a good salary can be difficult. We’ve compiled some figures to help you get a picture of what you can expect in Frankfurt (and Germany in general) as well as the cost of living. 

What’s the average and median wage in Germany?

According to data published by Germany’s statistical office (Destatis), the average monthly salary across Germany in 2023 for full-time employees was €4,479. This corresponds to an annual salary of approximately €53,748 before tax.

The average is calculated by adding up all of the individual values and dividing this total by the total number of values.

Another way to look at this is through the median. It is calculated by taking the ‘middle’ value, the value for which half of the salaries – in this case – are larger and half are smaller. Is is often thought to give a more realistic picture. 

According to career portal Stepstone’s 2024 report, the median gross salary in Germany is around €3,645 monthly, which works out at around €43,740 per year before tax. 

But salaries in Germany can differ significantly depending on where you live.

What can you expect in Frankfurt?

According to Stepstone’s analysis released at the start of 2024 and based on findings from November 2023, the median salary in the state of Hesse, where Frankfurt is, stands at €47,500 (before tax). That’s the second highest amount out of all Germany’s 16 states. In case you’re wondering – at the top of the list is the city state of Hamburg, where the median salary is almost €50,000.

Frankfurt ranks highly when it comes to German cities, with the median gross salary for full-time employees reaching €54,250. It is placed third behind Stuttgart and Munich. Munich is the city with the highest salaries in Germany, with a median wage of €56,000. 

READ ALSO: Munich vs Berlin – what’s considered a good salary for foreign workers?

To give a snapshot of how different salaries in Germany can be, the median salary in Schwerin, the capital of Mecklenburg-Western Pomerania, is €39,000, according to this analysis, while in Berlin it’s €46,500. 

What’s left after tax?

Your gross salary (Bruttolohn) isn’t what you take home so it is important to think about what your net salary after taxes (Nettolohn) will be, which is what you’ll have left to spend. 

In Germany, you can typically expect a tax rate between 30 to 45 percent of your gross salary. Your exact tax rate depends on how much you earn and other factors including your marital status and whether you have children or not.

People enjoy sunny weather in Frankfurt.

People enjoy sunny weather in Frankfurt. Photo: picture alliance/dpa | Andreas Arnold

You also have to pay social security contributions. As an employee, you pay a fixed percentage of your salary for social security membership, and your employer pays a fixed percentage as well. The amount you’ll pay will be split evenly between you and your employer. 

Meanwhile, if you are a member of the church, you will pay church tax to the tax office. 

Any extra income you make on top of your wage must also be declared to the tax office and you have to pay tax on it.

READ ALSO: 10 things Frankfurt residents might take for granted

Is cost of living high in Frankfurt?

High inflation following Russia’s full-scale invasion of Ukraine in 2022 has resulted in the cost of everyday goods and services across Germany rocketing upwards.

Although inflation has calmed down somewhat in the last months, it’s still a big factor affecting people’s lives.

Frankfurt has never been known to be on the cheaper side. And a recent ranking illustrated that it is helpful to have a good salary to live there.

In this year’s Mercer Cost of Living survey, eight German cities were said to be among the 100 most expensive cities in the world.

Berlin took the top spot as the most expensive German city, mainly due to the spiralling costs of renting an apartment.

But another shocking find of the survey was that Frankfurt climbed 13 places in the past year to land in second place in Germany – even beating Munich. In the global ranking of the world’s most expensive cities Berlin landed in 31st place and Frankfurt took the 35th spot. 

READ ALSO: Which German cities are the most expensive for residents in 2024?

According to cost of living site Numbeo, which compiles information from users and reputable sources, a single person in Frankfurt faces monthly costs of around €1,000 without rent, while a family of four’s living costs amount to about €3,500. 

Rent can be high. A one-bedroom apartment in the city centre could set you back around €1,250 per month, and about €930 outside of the centre of Frankfurt, according to these figures. 

Meanwhile, a three-bedroom flat could be around €2,200 in a central location in Frankfurt, and about €1,500 in a less central zone. 

Which jobs pay the most or the least?

Stepstone’s 2024 salary report for Germany lists median salaries for a number of professions.

According to the report, medical doctors earn the most with a gross median salary of €94,750 This means they earn more than twice as much as the national average.

Employees in the banking and finance sector, with €57,000 gross per year, and engineers with €56,000, are also among the top earners.

At the other end of the scale are retail, catering and hotel employees, with a gross median salary of around €35,500 per year.

Germany’s minimum wage (€12.41 per hour in 2024) amounts to about €26,000.

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