Why student apartments are worthwhile

There is a housing shortage in almost all German university cities – and this is exactly where your investment comes in. Small apartments or shared apartments near the university(map with universities) are always in demand, and you can buy, upgrade and rent them out directly without a lot of start-up capital – stress-free via a property management company.

Constant tenant turnover is an advantage

Students are moving more frequently, starting a new semester or changing cities. For you as an investor, this means: no fear of vacancies, but constant demand – especially in central locations or close to the university.

Compact size = high efficiency

An apartment with 20 to 30 m² will cost you less to buy and less to maintain. At the same time, you can achieve more rent per square meter than with larger apartments by equipping it with a kitchen and possibly furnishing it.

Little effort, clear processes

Instead of taking care of rental contracts, utility bills and minor repairs yourself, you can commission a property management company – ideal for beginners or if you have a busy work schedule.

• High demand all year round
• Compact properties with strong returns
• Hand over administration completely

What you should consider when buying

When it comes to student apartments, location counts. If you buy centrally, you will get more rent and find new tenants more easily. It is also important that you have the incidental purchase costs under control – and know your net yield, not just the gross figure from the exposé.

Only proximity to the university brings real returns

The classic: a small apartment within walking distance of the university or with a direct subway connection. Without this, it will be difficult to reach the target group – especially for smaller units.

Keep purchase price low

The trick is to find a solid property below market value – e.g. in a basic condition that can easily be upgraded with a little paint, a new kitchen and furniture. This will increase the value without you having to dig deep into your pockets.

Buying cheap real estate? Here are my tips from Los Angeles: Buying real estate cheaply (acquisition)

Plan property management from the outset

The monthly costs for property management (usually €25-40) are manageable – in return, you get peace of mind, professionalism and legal protection. This is worth its weight in gold, especially if you have several tenants per year.

• Affordable shopping with potential
• Location = daily demand factor
• Property management saves time and nerves

More rent through simple fittings

Do you want more than the standard price? Then invest specifically in equipment – and target students who don’t want to organize their own furniture or kitchen.

Fitted kitchen as a rental booster

For €399, you can get a modern, small fitted kitchen with a fridge, hob and storage space. This will immediately set you apart – and you can easily charge €50 more rent. Many students specifically look for apartments with their own kitchen.

Fitted kitchen = 399 €

Surcharge per month = 37.50 (at 1.50 € / m² for 25 m²)

Amortized in 11 months

To do this, make a handwritten note in the rental agreement that your tenants are responsible for any damage or repairs to the fitted kitchen.

Furnished = more rent, less vacancy

A simple bed, desk and wardrobe – that’s all you need. You can include the furnishings in the rent; many tenants are happy to pay for this as they don’t have to buy or transport any furniture.

Paint once = better effect

A light coat of paint makes a big difference. Clean walls and a well-maintained floor look immediately more modern – even if the substance is simple. The effort is minimal, the effect is great.

• Kitchen: +50-100 € rent possible
• Furnished = reach target group directly
• Looks count – even for students

Micro-apartments as an alternative or extension

If you want to scale up the concept, take a look at micro-apartments – they work in a similar way to student apartments, but are often more modern and also appeal to young professionals or commuters. Advantage: often slightly higher rent, same basic logic.

More target groups, similar strategy

You can reach more tenant groups through better facilities, services (e.g. Wi-Fi, cleaning) or location in business districts. The principle remains: small space, high rent, low vacancy rate.

Investing through society

Especially if you are buying several units, it is worth taking a look at GmbH structures in order to work efficiently from a tax perspective. We will be happy to advise you on this – or you can learn more in our further videos.

• Scalable due to many locations
• Broader target group than students
• GmbH models for larger investments

10 % return is achievable – if you buy smart

Student apartments offer you a solid, calculable entry into the world of real estate. If you buy cheaply, modernize a little and adapt to the target group, you can achieve realistic net yields of 8 to 10 percent. Even better: you hand over the management directly – and have created your first real investment property with a small apartment. Now it’s up to you to take the next step.

Micro-apartment as a capital investment: advantages for you

Small apartment with 25 m² instead of a large 4-room apartment. Why? More and more people are living alone in single households. Students, singles, holidaymakers, but also professional groups such as fitters, who are often in different cities. Learn more about investing in small condominiums, so-called micro-apartments, here.

• Micro-apartment as a capital investment

1. loss of rent: when the rent is not paid

One of the main reasons for insomnia among landlords is rent default. This occurs when tenants fail to pay the agreed-upon rent on time or at all. Rent defaults can cause financial shortfalls and often require legal action to collect outstanding payments. Landlords should be prepared to have reserves to weather financial setbacks.

Loss of rent: When the rent is not paid:

• Tip 1: Set clear rent payment deadlines and remind your tenants to pay on time. Automated payment reminders can be helpful here
• Tip 2: Create a financial safety cushion to cover unexpected rent losses. This can help you in financial straits

2. tenant problems: dealing with difficult tenants

Landlords often face the challenge of managing problem tenants. This can range from repeated noise nuisance and inappropriate behavior to significant damage to the property. Dealing with these conflicts requires tact and the ability to enforce the lease and applicable laws.

Tenant problems: dealing with difficult tenants:

• Tip 1: Lay down clear rules of conduct in your rental agreement and inform your tenants of rule violations at an early stage
• Tip 2: Maintain open communication with your tenants to address and resolve issues early, before they escalate

3. repairs and maintenance: maintaining the value of the property

Regular property maintenance is critical to maintaining its value and ensuring tenant satisfaction. Repairs, renovations and maintenance can incur unexpected costs and require reliable tradesmen and service provider management. In the long run, however, well-maintained properties can command higher rents and resale values.

Repairs and maintenance: maintaining the value of the property:

• Tip 1: Maintain a regular inspection routine to identify and address potential repairs early on
• Tip 2: Plan for the long term and set a repair and maintenance budget to better manage unexpected costs

4. tenant turnover: finding long-term tenants

Frequent tenant turnover can lead to vacancies and additional costs. Landlords often seek long-term, reliable tenants to overcome this challenge. This requires thorough tenant selection, adherence to fair lease terms, and proper communication with tenants to meet their needs and build long-term bonds.

Tenant turnover: finding long-term tenants:

• Tip 1: Conduct thorough background checks on your tenants to select reliable long-term tenants
• Tip 2: Offer long-term leases with attractive terms to retain tenants for the long term and minimize vacancies

5. legal requirements and regulations: legal pitfalls

Real estate leasing is subject to numerous laws and regulations, ranging from lease agreements to discrimination laws to safety regulations. Landlords must become thoroughly familiar with local, state and federal regulations to avoid legal problems. Failing to comply in this area can lead to costly legal battles.

Legal requirements and regulations: legal pitfalls:

• Tip 1: Learn about local, state and federal rental laws and regulations early to ensure you meet all requirements
• Tip 2: Stick to best practices to avoid legal problems, such as keeping careful leases and following discrimination laws

6. insurance and liability: protecting yourself from risks

Having the right insurance is critical to protect landlords from unforeseen damages or liability claims. This includes liability insurance, property insurance and possibly loss of rent insurance. Choosing the right policies should be done carefully to ensure the best possible protection.

Insurance and liability: Protect yourself from risks:

• Tip 1: Consult an insurance professional to select the right insurance policy for your property, including liability insurance and property insurance
• Tip 2: Investigate the possibility of rent loss insurance to cover financial losses in case of rent loss

7. taxes and finance: Accounting and tax planning

Financial management of real estate requires accurate recordkeeping and effective tax planning. Landlords should be aware of the tax implications of rental income and expenses to maximize profitability and avoid problems with tax authorities.

8. marketing and leasing: finding the right tenant

Finding suitable tenants requires marketing efforts and conducting viewings. It is critical to present the property attractively and thoroughly screen potential tenants to make the right choice. An effective marketing and leasing process can minimize vacancies and increase profitability.

Marketing and leasing: finding the right tenant:

• Tip 1: Invest time and effort in presenting your property, including appealing photos and a detailed description, to attract qualified tenants
• Tip 2: Conduct comprehensive background checks on prospective tenants to ensure they are reliable and understand the terms of the lease

9. economic fluctuations: Dealing with uncertain times

The rental of real estate may be affected by economic fluctuations. Changes in the economy can affect rental income and property value. Landlords should prepare for economic uncertainties by creating adequate financial reserves and developing a flexible strategy to adjust to the market.

My conclusion: mistakes when renting

Renting out real estate can be a rewarding investment, but it presents a variety of challenges. By thoroughly educating yourself as a landlord, seeking professional assistance (tip: real estate coaching), and adopting best practices, you can better manage these issues and increase the success of your rentals.

No more desire to rent?

Your option: Lukinski for sellers

Rent with our experts.

• Lukinski for sellers

Master Course at a Glance: “Homeowner

Still thinking about whether it’s worth booking coaching? Read here everything important about the contents of the master course “Homeowner” including course overview, conclusion, experience and final evaluation!

In advance, another tip, order now for free, the bestseller on financial freedom and real estate investment “Richer than the Geissens”!

Before we get to content, an important question:

Who is the master course for? Typical problems

You own real estate property (or want to prepare yourself in the best possible way)? Then you may know these typical problems from vacancy to administrative expenses.

• Vacancy: Difficulties in fully leasing properties
• Rent arrears: problems with tenants unwilling or unable to pay
• Maintenance costs: challenges in financing and organizing repairs and renovations
• Mold: problems with moisture and mold in rental apartments
• Tenant turnover: frequent changes of tenants that cause additional effort and costs
• Legal matters: Difficulties in complying with rental laws and contract negotiations.
• Financing: challenges in obtaining and managing loans and mortgages
• Tax aspects: Complexities related to real estate taxes and tax returns
• Administrative expenses: Time and effort required for general property management.

Topics and learning areas in coaching

Watch out! There is a lot of content! Let’s start with all the facts:

You will learn this and more in the “Homeowner” Master Course. Here are 3 important topics briefly explained, from the course of Alex Fischer, which I would like to introduce briefly:

Full leasing basic knowledge

This lesson provides the fundamental knowledge to achieve full occupancy while generating additional income. Strategies and techniques are presented to avoid vacancies and increase demand for rental properties.

Save costs when buying building materials

In this course, you will learn how to achieve significant savings on renovation projects by making smart decisions when purchasing building materials, flooring, fixtures, electronics and other materials. With this tip, you can reduce material costs by up to 50%, increasing your profitability.

Real estate gains immediately tax free

In this lesson, you’ll learn a strategy that allows you to realize real estate gains immediately, tax-free, without having to wait for the usual 10-year holding period. You’ll learn how to build wealth without having to pay taxes by skillfully applying the “live-through” strategy. This lesson will provide you with valuable insights and legal information to optimize your real estate investments for tax purposes and thus generate more profit in the long run.

Conclusion Master Course: My Experience

Alex Fischer ‘s “Career Power” Master Course offers an invaluable opportunity to take your professional career to the next level. Covering a wide range of topics from teamwork to understanding bosses’ expectations to effective time management, you will gain valuable knowledge and practical advice to increase your effectiveness and maximize your success in the work environment. This course will give you the tools and strategies to achieve your professional goals and gain the prestige and recognition you deserve.

Invest in your professional future and take on the challenge of optimizing your career path. With the Career Power Master Course, you can expand your skills, realize your potential, and take your career to the next level. Take this opportunity to accelerate your success and achieve the career of your dreams. You have the potential to achieve great things – let Alex Fischer’s Career Power Master Course be your catalyst for professional success.

My evaluation of the Masterclass

From my experience from the master course, I would conclude with:

4.7 / 5.0 stars

More coaching from Alex Fischer?

Presented, detailed, with content, chapters, learning fields, with conclusion and evaluation. Everything you need to know.

• AF Coachings & Seminars
• Alex Fischer: Who is that?

Individual Masterclass Coaching:

• Financial Intelligence Coaching
• Leadership Power Coaching
• Homeowner Coaching
• Real Estate Investor Coaching
• Tax coaching

Over 10,000 participants in the coaching sessions:

Real Estate Investor Mindset:

Risk Minimization:

Living space for investors: Small apartments in A and B locations

As an investor, it is not only important to you to achieve a high rental return and avoid vacancies, but also to rent out your property quickly and easily. Therefore, you should select an optimal living space for this purpose.

Most important: High rental yield, no vacancy & fast leasing

Important: When buying a property as an investment, pay attention to the relation between the number of rooms and the living space. Example: A 120 m² apartment with 2 rooms is just as difficult to rent out as a 60 m² apartment with 5 rooms. Instead, apartments between 50 and 80 m² have proven themselves in the past. One-room apartments with a size of 20 to 40 m² in very good A and B locations are also profitable. These properties are particularly popular among singles, young professionals and students. The only disadvantage: a frequent change of tenants.

Here are our tips in summary:

1. Balanced relation between room and living space size
2. Apartments between 50 and 80 m²
3. One room apartments between 20 and 40 m²

Tip: Avoid vacancy with WG division

So apartments that are too large are difficult to rent out. Why? The target group for such apartments is simply smaller. If you already own such a larger apartment or are planning to buy one, then you can get around these difficulties by renting it out as a shared apartment. Although this entails a frequent change of tenants, it allows you to earn a more effective price per square meter.

You can now find more tips on the optimal property size in my guidebook on Immobilien-Erfahrung.de:

• Size of a property: living space (m²) when buying a condominium? (external)

Microapartments also make excellent investment properties:

Living space for owner-occupiers: high feel-good factor

Compared to capital investors, the subjective feel-good factor plays the biggest role for owner-occupants when choosing the right living space. Most owner-occupants tend to have more living space than necessary. However, keep in mind that a larger property also comes with a higher purchase price. Not to mention the high ancillary purchase costs!

Personal preference and goals are paramount!

Conclusion: How big should your property be?

This question depends on your investment strategy as well as on your individual goals. If you are buying a house or apartment as an investment, you should make sure that the number of rooms and the size of the living space match. In addition to 2-3 room apartments between 50 and 80 m², one-bedroom apartments in A and B locations have also proven successful. If you invest in a property as an owner-occupier, your personal well-being comes first.

If you want to learn even more on the subject of buying a property, whether owner-occupied or capital investment, numerous articles, guides on the subject of rented vs unrented, as well as checklists, all free and 24 hours online available, with us!

Apartment, house, apartment building, everything for real estate beginners!

Now new on Immobilien-Erfahrung.de:

• Buy property: learn – external

Notice of termination of own use: Definition & Explanation

So if you acquire a property that is already rented out, this does not mean that you have to continue renting it out. On the contrary: In some cases, you can even move into your new property shortly after the purchase. For this, you must then prepare a notice of own need and submit it.

Deadline for the declaration of own need: 3 to 9 months

Let us now take a step-by-step look at the details of such a termination.

Demonstrable reasons for own use: desire for children, old age & Co.

You must therefore provide reasons for the termination of the tenant. Not every reason is also a reason for own need. Instead, you must be able to show that you have to move into the house or apartment for compelling reasons and have no alternative. Illness, old age or pregnancy can be such reasons.

Here are some examples:

• Desire to have children
• Living space extension
• Professional move
• Replacement apartment
• High age
• Disease

Notice for beneficiaries: From children to grandma

In addition, you can also terminate the tenants if a person benefiting you urgently needs the living space. This includes grandchildren, life partners and also children-in-law and parents.

Beneficiaries include:

• Children
• Parents
• Grandparents
• Siblings
• Grandson
• Nieces and nephews
• Children-in-law and parents-in-law
• Spouse
• Life partner

Cousins, great-nephews and -nieces, as well as step-grandchildren also belong to the group of beneficiaries. In some cases, you will need proof of the exact background and the relationship between you and the person.

Reading tip: Everything about buying real estate

If you want to learn even more on the subject of buying a property, whether owner-occupied or capital investment, numerous articles, guides on the subject of rented vs unrented, as well as checklists, all free and 24 hours online available, with us!

Apartment, house, apartment building, everything for real estate beginners!

Now new on Immobilien-Erfahrung.de:

• Buy property: learn – external