How can I determine the local rent for my property?
September 25, 2023 | 40,00 EUR | answered by Petra Höfer
Dear tax consultant,
I have inherited a property that I would like to rent out. Unfortunately, I have no idea how to determine the local rent for my property. I naturally do not want to ask for too much or too little and also do not want to break any laws.
The property is located in a smaller town in Northern Germany and consists of a two-bedroom apartment with a living area of approximately 60 square meters. The location is relatively central, with shopping facilities, schools, and public transportation nearby.
I am worried that I might make a mistake when setting the rent and therefore discourage potential tenants or encounter legal problems. At the same time, I do not want to ask for too little and end up giving away money.
Could you please explain to me how I can determine the local rent for my property and what factors play a role in this determination? Are there specific criteria that I can use as a guide? And how can I ensure that the rent is fair and that I do not have to fear legal consequences?
Thank you in advance for your help.
Best regards,
Uwe Hentschel
Dear Mr. Hentschel,
Thank you for your question regarding the determination of the local rent for your inherited property. It is understandable that you are unsure and worried about making mistakes. But do not worry, I will gladly explain to you how you can proceed to set the rent appropriately.
To determine the local rent for your apartment in Northern Germany, there are various options. One of them is the comparative rent, which is composed of the rents of comparable apartments in the area. You can refer to rent price surveys or databases that provide information on rental prices in your region. Also, a look at local newspaper ads or real estate portals can be helpful to get an idea of the current rents.
Another important factor in setting the rent is the condition and amenities of the apartment. Is it a renovated, modernized apartment with new facilities? Or is the apartment in a rather older condition? Depending on that, you can adjust the rent accordingly.
The location of the property also plays a crucial role in determining the rent. As you have already mentioned, your apartment is in a central location with good infrastructure. Apartments in such desirable locations can usually achieve higher rents than apartments in outlying areas.
To ensure that the rent is appropriate and you do not have to fear any legal consequences, I recommend that you seek help from a professional who is knowledgeable about the subject. A tax advisor or real estate expert can assist you in determining the local rent and ensure that you comply with all legal requirements.
I hope that my tips will help you and that you can successfully set the rent for your property. If you have any further questions, I am at your disposal.
Sincerely,
Petra Höfer
