Hi

What are the forecasts for the property market in Germany?

What will happen in 2009?

Should I avoid buying property in Germany right now?

Will property prices decline?

I will be buying an apartment in Bonn as rent to let investment.

Hi

I am not sure I can answer this . I find it difficult dealing the property management company in Berlin for my apartments , they also appear to be overcharging me on the comission and do not communicate in Engish , one of my German tenants is delaying rent payments and german tenant laws give rather more protection I understand than we have in the UK or eastern europe to evict and get payment . So my experience is negative not to say other people are doing well and if you have control over the management it may be worthwhile but I find managing at a distance is not that easy.

Does anyone know what the typical management charges are for properties in Germany I appear to being ripped off at about 18%

I had the same problem with one particular tenant.

If a tenant does not pay or delays payments then German law does not defend the tenant.

If a tenant delays payments for two successive months then landlord has the right to evict the tenant.

You need a lawyer (and a legal insurance too!).

Lawyer has to notify tenant and there are particular procedures to follow.

Of course tenant can be taken to court to be evicted and for money he owes.

Many Thanks for the advice Claude

Hello

Management costs in germany should cost you around more than € 16 per flat per month. So that is around € 240 plus VAT per year per flat. At 18% you are certainly being ripped off big time. if you want some advice call me I have a company called ibs real estate in Germany and have been dealing with residential property here for a few years - tel 0049 171 788 5667 www.ibs-realestate.com

Tenants in Germany are allowed to make deductions on their rent if something is wrong with the flat and really you need someone to give you the reason they are not paying. Owners certainly have rights if a tennat is just being difficult and it is possible to have them removed via the right procedure.

Management companies normally charge an amount based on the number of units in the block. It the number of units is small (e.g. < 10) then you can expect to pay about 30 EUR per unit per month. If there are a large number of units > 30 you can expecvt to pay less (about 20 per month). If you have just bought a block and it is a new company managing the block then you can also expect to pay a little more in the 1st year as there is always more work to do in the 1st year of management.

Seamus