Guide
Berlin housing policy
Occupancy rights: Berlin pays owners up to EUR 24,400 for affordable letting
The Senate continues its program to purchase occupancy rights. Owners who let to holders of a housing entitlement certificate for ten years receive a lump-sum advance payment.
Peter Guthmann
The Investitionsbank Berlin (IBB) is again providing one million euros in 2015 for the purchase of occupancy rights. The money comes from the Berlin Contribution fund and targets private apartment owners willing to make their property available for social housing for ten years.
The principle: the city acquires the right to nominate tenants for a private apartment. In return, landlords receive a financial subsidy. Only holders of a valid Berlin housing entitlement certificate (WBS) may be accepted as tenants.
Conditions for owners
Participating owners commit for ten years to the following terms:
- The initial rent may not exceed 5.50 euros per square metre net cold rent.
- Every two years, an increase of 0.20 euros per square metre is permitted.
- The apartment may only be let to WBS holders nominated by the district office.
Subsidy amount and sample calculation
As compensation, the Senate pays a one-off advance, tiered by location:
- Inside the S-Bahn ring: 2.50 euros per square metre per month
- Outside the S-Bahn ring: 1.50 euros per square metre per month
In addition, there is an administrative flat fee of 400 euros at the start of the tenancy. The Senate calculates: for an 80 square metre apartment inside the S-Bahn ring, this amounts to a total subsidy of 24,400 euros, paid in full at the beginning.
Who this makes sense for
Owners forgo potentially higher rental income on the open market. In return, they receive a substantial lump sum and ten years of secured rental income with no vacancy risk. This can be attractive for apartment building owners seeking predictable income, or for landlords who want to fund an upcoming renovation with the advance payment.
The current market development in Berlin shows rising rents. Whether the program's terms can compete with open market rents depends on the location and condition of the apartment. Interested owners can contact the Senate Department for Urban Development or the IBB.