GRABAG - FAQ

Are there any restrictions on non residents buying property in Germany?
There are no restrictions on foreign nationals buying property in Germany.
What fees do buyers have to pay?
The total amount of legal fees will be around 9% depending on the purchase price. This consists of Buyers face up to 4.5% stamp duty, 1.5-2% notary fees, a flat fee of €2000 for the lawyers, around €500 to €900 finance fees. There are no agent fees
What running costs am I liable for?
The landlord pays maintenance, property management, mortgage interest payments and consultation fees (legal, accounting, tax). Everything else is paid by the tenants as part of the service charge.
A property manager charges from €24-40 per unit per month (excl. VAT).
What do the tenants pay through service charges?
The service charge includes building insurance, ground tax, cleaning of the common parts, gardening, housekeeping, electricity for the common parts, regular inspection of the heating system, water, chimney sweeping, cable TV, snow and waste removal.
What are the fees for selling a Berlin property?
There are no fees for selling a property in Berlin; all fees are paid by the purchaser.
What are the main laws relating to tenants?
German law is pro-tenant, but this does ensure stable, long-term tenancies, unlike the disruption of short-term contracts in the UK. Tenancy law is enforced in the ordinary courts, which are fair and effective.
The notice period is between three to nine months (if the tenant has lived long in the premises). The tenant must generally give three months notice.
The security deposit must not exceed three monthly rental payments.
How can I increase rents?
Rents and rent increases can be freely negotiated and agreed upon, but the landlord cannot charge rent in excess of 20% above the rent charged for comparable premises.
The contract may contain graduated rent increase clauses, but the rent must remain unchanged for at least a year.
For a vacant flat, the landlord can set the rent at market level. If the landlord modernises a flat he can increase the rent by 11% of the modernisation costs. As an alternative to the annual rent review the landlord can agree a step-up rent with the tenant.