Immobilien: Kauf einer Mietwohnung – Das verdienen Vermieter tatsächlich

Many Germans are concerned about receiving insufficient pensions in retirement and are therefore seeking alternative ways to secure their income. One lucrative option that has emerged is the rental of apartments in a multi-family building. With many wealthy individuals and family offices investing in real estate for years, it seems that a good return on investment is a hope for them.

However, a recent survey by the Property Owners Association Haus & Grund showed that many private landlords only break even or even make a loss with their properties. So how profitable is it to rent a multi-family house in the current environment of rent regulation, high property prices, and rising interest rates? Here are three example calculations and a costly mistake buyers should avoid.

Jürgen Michael Schick, Managing Director of Schick Immobilien in Berlin and honorary president of the Real Estate Agents Association IVD, warns against making the property the benchmark for valuation. "When one asks oneself whether they would like to live there, their children could live there, and whether they personally like the location, that is already a costly mistake," he says.

"A simple to medium-sized house in a medium location is enough for a good yield – for premium locations, you usually pay premium prices." Gerald Hörhan, real estate investor and self-proclaimed "Investmentpunk," adds that investors often focus on luxury and aesthetics rather than economic viability. Therefore, small, simple apartments in functional locations offer exactly what matters: predictable rental income, solid demand, and manageable risks.

Buyers should question the location, check that the building is in good condition, and consider the city's prospects for population growth, but they should not base their purchasing decision solely on personal taste. New buyers should also look for a property in a location that is not too far from their private residence. Schick advises a maximum distance of 100 kilometers, minimizing the risk of making a wrong decision.

According to Schick and Hörhan, the Handelsblatt created three model calculations for the purchase of a multi-family house and its subsequent rental. The theoretical house is located in a German major city away from the largest metropolises, with a purchase price of one million euros, and annual maintenance costs amount to 10 percent of net rental income.

The building yields annual net rental income of 44,000, 55,000, or 61,000 euros, reflecting three different cost levels. In the first case, the cost to rent the house, including all purchase-related expenses, is 25 times the annual net rental income. In the second case, this factor is 20, and in the third case, it is 18. The calculations presented here focus on the factor of 20, which is applicable to most German major cities.