WHO WILL MONITOR YOUR APARTMENT WHILE YOU ARE AVAILABLE AND HOW? ARE THE GERMANS THEMSELVES ALWAYS SATISFIED WITH THE MANAGEMENT COMPANY? WHAT IS A GOOD TENANT? FOR YOUR ATTENTION ANSWERS AND REASONS FROM THE EXPERTS OF WIP IMMOBILIEN GMBH.
The usual situation: you are the owner of an apartment, but you yourself do not live in it permanently. Someone must look after the empty square – obviously your assistant, an individual or a company.
Regina Borger, CEO of WiP Immobilien GmbH: “What does it mean to protect the interests of the owner? Monitor the economic component so that the owner receives income; and for the technical condition of the apartment, so that its value does not decrease, but grows.” Andrey Denisov, head of the sales department of WiP Immobilien GmbH: “Most clients buy for investment purposes, and they do not want to face a situation where they need to deal with the tenant. From experience, if a client goes to a German company, because of the difference in mentality, he does not understand what it is about.”
To keep abreast of everything that happens in your house, you assign someone to monitor the apartment.
This someone enters into a relationship with the HOA of your house, with the management company, with other neighbors. For example, he represents you at meetings, which in Germany is by no means a useless formality.
Faced with problems of housing and communal services in our homeland, we begin to idealize abroad. Perhaps there is more order here. But Germany is also not a paradise, and there are contradictions between the owner and the management company of your house.
Regina Borger: “Real estate is a lot of money that needs to be monitored. Therefore, the owners go to meetings, actively participate in all discussions. They want their property to remain in good condition both technically and economically.
I think that in Germany the owners are dissatisfied with their management company in about 20% of cases. The usual reason is the reaction to complaints. Companies are slow to resolve conflicts, which means they need to be constantly pressed.
How should disputes be dealt with? If we do not agree with the annual report that was provided to us by the management company, after agreement with the owner, we transfer the documents to our lawyer. And together we are building a plan of action.”
Of course, an empty apartment does not require constant attention. Your partner will come here only when necessary.
Regina Borger: “Of course, our work mostly takes place not on the road, but in the office. We come to a specific house for a meeting of owners or in the event of some kind of force majeure. Well, and one more option if the owner of the apartment has a special request: for example, he wants to set up television in his native language or something like that.”
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The situation when the owner of the apartment comes to her two or three times a year happens, but relatively rarely. Much more often, the vacant area is rented out for long-term rent. And your partner has additional responsibilities – for example, finding a tenant.
Regina Borger: What does a good tenant mean? This is the one who pays the rent on time, who does not complain about every little thing, who keeps the apartment in good condition.
Andrey Denisov: “Munich is a specific city. If we announce the rental of an apartment in the morning, up to 20 people can come to view in the evening. Therefore, there is a system for selecting the “right” tenant, who will pay on time and will not cause us any problems. We will find out where the candidate lived before, what is the composition of his family. We ask for an extract from the credit bureau or a letter from the previous landlord stating that the rent was always paid on time. We look at his work contract: where and for how long he works.
Renting out an apartment is passive income.
The word “passive” reflects the unwillingness of the owner to dive into the process. The task of the representative is to solve all problems without pulling the landlord. Of course, in some cases this is not possible. In addition, your partner may be faced with the most outlandish situation.
Regina Borger: “I recently received a letter from our tenant from India. There was mold in the corner of her apartment. And the reason is simple: the apartment was improperly heated and ventilated incorrectly. Well, what to do – in India they don’t know how to heat and they don’t know how to ventilate, there is no winter there. The problem seems to be completely ridiculous, but we will have to teach a woman how to do it.
In general, if a tenant has a problem, we contact the owner, identify it, and offer solutions. The owner himself determines which option to choose.
But this is not the case with the Indian tenant. Yes, the landlord wants the mold removed, but the landlord is not at fault for what happened, who should not bear the cost. Our task is to explain to the tenant what her problem is and how to solve it.”
When the owner begins to rent out an apartment, he enters into financial relations with Germany. A tax consultant helps to formally settle these relations. But he solves all technical financial problems. If your question is more creative – for example, how to increase rental income – it is also better to contact your partner for this.
Regina Borger: “It is better to choose a tax advisor based on his experience and knowledge of several languages. For example, we work with an auditor who speaks Russian, Hungarian, and English. But in general, tax reporting is carried out remotely. You do not need to go to the tax office all the time, to the tax adviser. Meetings happen, but very rarely. Only when you really need them.”
So, communication with the management company. HOA meetings. Repair work. Finding a tenant. Communication with him. After purchasing an apartment in Germany, you have not only rights, but also obligations. Upon closer inspection, they are not so few. So in most cases, finding an assistant or partner is a must. So, when buying an apartment, you better have an answer to the question: “who could it be?”.
The material was compiled jointly with prian.ru, editor-in-chief Philip Berezin, shooting by Shamkhal Eyvazov
September 26, 2016