Is Airbnb profitable

Real estate investment & rental through Airbnb

Airbnb is now a globally known platform when it comes to booking accommodation with locals at short notice. Airbnb is a product of the “sharing economy” and helps connect locals and travelers. If you're going to Munich at the weekend, you can book your accommodation quickly and easily via Airbnb.

The accommodations are often used by local private individuals rented, which can thus significantly reduce the total costs per month. On the other hand, there are people who consider this situation lucrative business consider and buy real estate in attractive city locations and rent them out at short notice.

The strategy behind this is relatively simple. Often the owners can earn a multiple of the usual rental price. A Average earnings per week and guest is 352 EUR in Munich; for 2 guests then 536, - EUR. The monthly rent for a 60 m2 apartment in Munich is around EUR 1,000. At full capacity and with several guests, Airbnb can easily double the amount. In some cities even more.

An interesting business for many investors. Simply take out a mortgage and pay it off with Airbnb income within 6-8 years. With regular rental prices, you can expect an amortization period of over 20 years. Of course, this is individual for each investor.

situation in Germany

The fact is that Airbnb and similar portals like Wimdu and 9Flats are pushing the locals out of the city centers. It is already difficult to find affordable accommodation for students or young workers in Berlin or other large cities.

Guidelines

For this reason, the individual cities have established rules that restrict the rental of apartments for short-term purposes to tourists. You can find out about your local regulations at your district office.

This applies to Berlin and other large cities Prohibition of misappropriationwhich the Prohibits commercial rental of apartments to tourists. Apartments are not allowed to be rented out as holiday flats unless a separate permit has been obtained. If you would like to leave your apartment as a holiday home, apply for a permit from your district office. To do this, you need the completed application form, a reason and proof of ownership. Processing takes up to 8 weeks. More information can be found here.

In plain language: If you want to rent out all of your condominium, you need a permit, otherwise you are acting illegally.

frequently asked Questions

I do not have a permit, but I am renting out the entire apartment?

Depending on the city in which you are, you should observe the local regulations. Large cities such as Bonn, Cologne, Berlin, Stuttgart, Hamburg and Munich have drawn up guidelines that limit renting for short-term stays. If you do not have a valid permit, a fine of up to EUR 100,000 can be charged. If the neighbors have the feeling that you are renting out your apartment illegally, they can report it to the responsible office.

Can I sublet my apartment?

As a tenant of an apartment, you can only sublet it at local prices. However, the owner or the property manager must agree to this.

Under what circumstances do I not need a permit?

If you live at least 50% of the time in the apartment, you can rent out the remaining 50%. If you live in a two-room apartment, one room can easily be rented out. Of course, this helps the tenant or owner to reduce the monthly fixed costs without breaking the law. No separate permit is required for this.

I'm going on vacation, can I rent out my apartment?

Yes, you can rent out your apartment for as long as you are going on vacation or aiming for a semester abroad. However, not on a daily or weekly basis. The rental price must also match the local rental payments.

Taxes and Legal Matters

  • revenue By renting out via internet platforms like Airbnb and Co you have to be in your tax declaration specify. Whether taxes are due depends on your individual situation.
  • value added tax do not pay until you received EUR 17,500 from subletting in the previous year and the forecast for the next year is EUR 50,000.

Business tax you only pay if the income exceeds the tax exemption of EUR 24,500 per year.

In most cities, tourists are required to have one Local tax afford to. Find out from the district office whether this also applies to your region and how you should settle it. Airbnb already automatically settles the municipal tax in some cities and pays the amounts directly to the bodies concerned. You can find out whether this is also the case in your city in the listing administration - local laws.

Conclusion

For investors in Germany, an investment in a property with a planned rental via Airbnb, because of the necessary approval, not so attractive anymore. There are still many black sheep who rent out their apartments without a permit. The cities are resisting, however, and are pursuing such providers.

What applies in Germany does not have to apply in other European cities. In Prague or Budapest, the conditions for short-term rental of apartments are not so strict. Those who react quickly can still invest well here.

Even if you stick to the law, Airbnb is still a great way to cut down on monthly fixed costs. After all, half of the apartment can be rented out. Ultimately, the idea of ​​the sharing economy isn't just that To generate profit but also the social relationships to maintain. By renting out rooms, you often meet interesting travelers from all over the world.