Why student apartments are worth it

In almost all German university cities, there is a structural housing shortage — according to the Moses-Mendelssohn Institute, thousands of student housing units are permanently missing in the top 30 university cities. This is exactly where your investment comes into play. Small apartments or shared flat rooms near the university (map with universities) are constantly in demand, allow an entry even without significant start-up capital, and can be managed stress-free through a property management.

Constant tenant turnover is an advantage

Students often move more frequently, start a new semester, or switch cities. As an investor, this means you can adjust the rent to the market anew with every tenant change — unlike in long-term tenancies, where index or step rent limit the adjustment scope. This way, there’s no fear of vacancies, but dynamic rent development.

Compact size = High efficiency per square meter

An apartment with 20 to 30 m² costs less to buy and maintain — and often generates 18–25 €/m² through furnishing and built-in kitchen, while existing apartments with 70 m² in the same location only bring in 11–14 €/m². The square meter lever is strongest in micro locations.

Low effort with external management

Instead of handling rental agreements, additional costs settlements, and minor repairs yourself, you hire a property management company — typically 25–40 € per month (special management) for a single apartment. Ideal for beginners or working investors.

• High demand throughout the year — especially at the start of the semester
• Compact properties with above-average square meter return
• Rent adjustment possible with every change
• Management fully delegable

Top Locations: Where student housing really pays off

Not every university city is a good investment. In Munich or Heidelberg, purchase prices are so high that the net return, despite high rents, barely exceeds 3%. Things get interesting in B- and C-cities with a large student population and moderate square meter prices.

A-cities: High security, weak return

Munich, Hamburg, Frankfurt, Cologne: stable value development, but a purchase price factor of 30+ makes cash flow almost impossible. Here you primarily buy for value appreciation, not for return.

B-cities: The Sweet Spot

Leipzig, Dresden, Münster, Bochum, Aachen, Kiel — good mix of purchase price, rental demand, and value stability. Here, net returns of 4–6 % are realistic, and in favorable microlocations even higher.

C-Cities: High returns, higher concentration risk

Magdeburg, Chemnitz, Cottbus, Siegen, Paderborn — returns over 7 % are possible, but: If the university shrinks or a study program is moved, demand can drop. Pay attention to the concentration risk of the university.

Example calculation: 25-m² apartment in a B-city

To make sure you don’t end up in a dry spot, here’s a complete calculation for a typical student apartment in a B-city like Leipzig or Bochum.

Purchase price and acquisition costs

Rental income and ongoing costs

Return calculation

Gross return: 5,880 € / 105,000 € = 5.6 %
Net return: 4,260 € / 121,100 € = 3.5 %
With reduced purchase-related expenses (direct purchase without real estate agent) and higher furniture rent, 4.5–5.5 % net in B-locations are achievable — in C-cities even up to over 7 %.

Rule of thumb: Price factor under 20 = return-eligible. Over 25 = primarily value appreciation investment.

What you should consider when buying

Location counts when it comes to the student apartment. Whoever buys centrally gets more rent and finds new tenants more easily. It’s also important that you have control over the purchase ancillary costs — and know your net yield, not just the gross figure from the Exposé.

Micro-location determines reletability

The classic: a small apartment within a maximum of 15 minutes walking distance to the university or with direct tram/subway access. Check additionally: supermarket, bakery, cafeteria, library within the vicinity. Students rent emotionally — not analytically.

Purchase price: existing buildings outperform new construction apartments

Many “student apartment buildings” are sold by the developer with a 30–40 % markup, because they are marketed as an investment product. The art is to find a solid existing property below market value — for example, with a simple condition that can be upgraded with paint, a new kitchen and furniture.

Funding: Not every bank is willing to participate

An important point that is often underestimated: Apartments under 30 m² are often harder to finance for many banks — some do not finance them at all, others only with 20–30 % equity instead of the usual 10–15 %. Get concrete financing commitments before purchasing, not just a rough estimate.

Check WEG risks

In purely student apartment buildings, often 80+ owners make decisions together — this can lead to high maintenance fees, disputes over renovations and special majorities. Check the last three owners’ meeting minutes and the reserve fund for maintenance.

Buy real estate cheaply? Here are my tips from Los Angeles: Buy real estate cheaply (Acquisition)

Plan for property management from the beginning

With frequent tenant changes, the effort adds up. A special property management service takes care of listings, viewings, rental agreements, handover protocols, billing, and communication — typically 25–40 € per month plus a change fee.

The purchase checklist before signing

• Distance to the university maximum 15 minutes walk or 5 public transport stops
• Purchase price factor under 22 (rent × factor = purchase price)
• Service charge under 4 €/m² total, of which reserve fund at least 0.80 €/m²
• Last three WEG minutes read — no major renovations pending
• Financing approval specifically checked according to apartment size
• Rent index and comparison offers for furnished apartments researched
• Location risk related to the university checked (student number trend, program relocations)
• Elevator and energy standard acceptable
• Parking space/bike room situation clarified

More rent through targeted furnishings

You want more than the standard price? Then invest specifically in furnishings — and thereby appeal to students who don’t want to organize their own furniture or kitchen. An apartment “ready to move in” achieves 15–25 % higher per square meter rent.

Built-in kitchen: Rentable standard, no luxury

A reasonable, rentable built-in kitchen with refrigerator, cooktop, exhaust hood, and solid countertop realistically costs 1,500–2,500 € including installation. This sets you apart from the standard — and earns you an additional 30–50 € per month in cold rent plus furnishings surcharge.

Built-in kitchen investment: 2,000 € | Additional rent per month: 40 € | Payback: 50 months without tax effect — significantly faster with depreciation over 10 years and advertising expenses.

Important: Damages to the built-in kitchen cannot be passed on to the tenant in a flat rate. Legally secure, you work with a minor repair clause (maximum 100 € per repair, capped at 8 % of the annual cold rent) and a deposit equivalent to three months of cold rent.

Renting furnished: Calculating the furnishings surcharge correctly

Insider knowledge: The furnishings surcharge is legally calculated as the time value divided by the period of use plus interest. Example: Furnishings investment 2,500 € / period of use 10 years / 12 months = 21 €/month pure depreciation, plus calculated interest results in about 30–40 €/month. In the rental agreement, the furnishings surcharge should be listed separately — otherwise the rent cap applies to the total amount.

Lighter paint, durable floor

A lighter paint makes a big difference. Clean walls and a durable vinyl or laminate floor look modern, are easy to maintain, and can withstand frequent tenant changes. Minimal effort, big effect — and you save yourself renovations between tenancies.

Avoid summer vacancies

July to September is critical in many university cities. Three strategies:

• Rent agreements with a minimum rental period of twelve months (September to September)
• Short-term summer rental to interns, language students, or first-year students
• Market furnished apartments via platforms like Wunderflats, Mr. Lodge, or Homelike

Tax advantages: What makes student apartments particularly attractive

The tax bracket is often forgotten for smaller investments — yet it makes the difference between 3 % and 5 % effective return.

Depreciation: Linear depreciation secures cash flow

Existing properties are depreciated linearly at 2 % over 50 years (3 % for new builds from construction year 2023, check!). With a purchase price of 100,000 € (building share 80,000 €), this amounts to 1,600 € annual depreciation — which reduces or eliminates your rental surplus for tax purposes.

Furniture depreciation over 10 years

Furniture and built-in kitchen are

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

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• Lukinski for sellers

Entry into capital investment real estate: 4 basics

Real estate acquisition: how to find cheap real estate, houses and apartments?

Finding the right property is the first step on the road to a successful investment. To find affordable properties, you should rely on various resources. Real estate portals on the Internet, real estate agents, auctions and even personal contacts can help you discover suitable offers. Be sure to check different locations and types of properties to have a wide range of options.

• Use personal contacts and networks
• Neighborhood
• B2B contacts (brokers, administrators, craftsmen, …)
• Direct approach to owners

Real estate yield: what is yield and how do you calculate it?

The yield is a decisive factor for your investment. It indicates how much profit you will make from your property. To calculate the return, divide the annual net rental income by the purchase price of the property and multiply the result by 100 to express the return as a percentage. A good return depends on several factors, such as the property’s location, rental rates and operating costs. As a rule of thumb, a return of 5% or more is considered acceptable.

• Yield measures the profit of your real estate investment
• Calculation: (Annual net rental income / purchase price of the property) x 100
• Factors for good returns: location, rents, operating costs
• Target: Return of 5% or more

Financing: equity and repayment plan

Most real estate investors require financing, and equity is critical here. It is usually recommended to raise at least 20% of the purchase price as equity in order to obtain more favorable loan terms and minimize risk. The financing itself consists of interest and repayment. A repayment plan will help you organize the repayment of the loan and ensure that you remain financially sound in the long term.

• Recommended equity: at least 20% of the purchase price
• Financing consists of interest and repayment
• Create a repayment plan for structured repayment of the loan
• Look for favorable credit conditions

Property management: letting, avoiding vacancies and maintenance reserves

After the purchase of your property comes the phase of management. This is about finding tenants, avoiding vacancies and keeping the property in good condition. You can rent it out yourself or leave the management to a professional property management company. Make sure to set up a maintenance reserve to be able to finance unexpected repairs and renovations.

• Finding tenants and avoiding vacancies
• Choice between self-management and property management company
• Establishment of a maintenance reserve for repairs and renovations
• Long-term care of the property for value retention

Favorable real estate, yield, financing and renting

Investing in real estate can be a profitable and long-term stable way to increase your capital. With the above tips, you can lay the groundwork for successful real estate investment as a beginner. However, it is important to note that real estate investing comes with risks, and it is advisable to do thorough research before investing and seek professional advice if necessary. However, with the right preparation and a clear plan, you can make great progress on the road to financial independence and security.

Lukinski YouTube: Yield, Capital Investment & Co.

Discover with me the crucial factors, key figures and basics of real estate investment. Compared to other forms of investment, real estate offers a ‘safer’ way to invest capital with consistent returns and long-term appreciation. Want to invest your money wisely? My recommendation: Real estate, passive income and a good life.

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More?

10 golden investment rules

Start your real estate journey right! Time and time again, people dream of investing in real estate, but few turn that dream into reality. These 10 indispensable rules are key to turning your ideas into successful real estate ventures. No bullshit. 10 Clear Rules.

• 10 golden investment rules

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:

Selling property for parents, grandparents and loved ones

As a child, you worry about mom and dad; as a grandchild, you worry about grandma and grandpa. Retirement savings don’t last forever, and neither do the savings. At some point, the property becomes too big, and at the same time the savings become less and less. At the latest now, a solution must be found for your loved ones!

What to do when you need to sell?

Prevention is better than aftercare: options

Before it is about expressions of grief, it is about good solutions. People grow old and at some point, life has to be organized appropriately. For many, this means selling the house and moving into an age-appropriate condominium. Accordingly, close people have to make decisions. This includes living wills, in case your loved ones are no longer able to make their own decisions at some point. But it is just as much a part of thinking about your own property.

One thing is also Important: First and foremost, do not think about your own inheritance, but about the family!

Let’s take a look at the 3 options for your understanding: Sale of the property, partial sale and real estate annuity! Tip, you will find further links to all three topics, with detailed explanations. What to do when someone gets old? Here are three alternatives!

Options in the sale of real estate:

1. Real estate annuity – selling with lifelong right to live
2. Partial sale – Proportionate, with option for total sale
3. Sale – Complete sale of the property

In addition, for owners: an extra tip on the subject of bequeathing correctly.

Real estate pension: sale with extra “pension” – Option 1

Your first option is the real estate pension. The real estate annuity is especially interesting for people who have already reached a higher age, usually from 70, 75 years. Should you prefer a solution in which your relatives can stay in their own property until the end of their life (!) without any complications, then the life annuity is an option you should consider.

Life annuity means that the property is sold in its entirety, but the owner retains a full right of residence and use until death. These privileges are secured by the usufructuary right. In addition, the seller receives a small, monthly extra “pension”. Another advantage, they no longer have to worry about maintenance costs in the future. This is the responsibility of the new owner. All in all, a comfortable solution, especially in old age.

Real estate pension simply explained:

• Direct, complete sale
• Lifetime right of residence and use
• Small, monthly “extra pension” for former owner
• No maintenance costs

Read more about topic here:

• Real estate pension

Unconcerned and reassured into old age.

Partial sale: Proportionate, with possibility of total sale – option 2

The second option for your loved one, if you want them to be able to continue living in their property, whether it’s a condo or a house, is to partially sell a property.

A partial sale works like this, you sell the part of a property, usually between 10% and 50% pro rata, to a finance company. For this sold part, the financial company charges a so-called “usage fee”. The user fee is paid in return for the fact that sole residential rights and rights of use are still granted. This means that the finance company merely becomes the partial owner. The advantage: you get the sale price relatively uncomplicated, without a major credit check, as with loans from the bank. The disadvantage: the user fee is relatively high, e.g. compared to a mortgage loan.

Partial sale summarized:

• You sell a part of your property (usually 10-50%)
• Partial purchase house: Yes
• Partial purchase apartment: Yes
• Partial purchase of land: Yes
• Financial company becomes part owner
• You remain the sole user of the property
• You pay monthly usage fee
• Total sales in X years (optional)

Read more about the advantages and disadvantages here:

• Partial sale property

Complete real estate sale – option 3

Your third option, if you need to find a solution, is the complete sale of condominium, house, apartment building. For the regular process, the question often arises, sell privately or sell with broker? Especially the emotional situations, such as deciding on the future of their own parents or grandparents, it is recommended to work with an experienced broker. After all, it is about all the advertisements, communication with interested parties, selection according to serious, unseriös, the subsequent credit checks, arrangement of viewing appointments and many more. Of course, also a big factor, the previous real estate valuation.

Read more here:

• Sell property

Selling real estate: Procedure and steps

To give you an initial overview of how such a sales process works, explained here in 18 simple steps, categorized into 3 phases.

1. Preparation: prepare property and sale
1. Financial planning and timing of sale
2. Hire real estate agent
3. Records and documents
4. Increase real estate value
5. Determine offer price
6. Create exposé
2. Sales phase: market property and find buyers
1. Market real estate
2. Contact with prospective buyers
3. Filter and select prospective buyers
4. Credit check
5. Viewing dates
6. Sales talk & purchase price negotiation
3. Sales processing: purchase contract until handover
1. Draw up purchase contract with notary
2. Notary appointment
3. Land register entry and payment processing
4. Handover of the property
5. Notary fees & broker commission
6. Pay taxes

These 3 options are primarily available to you.

These were the most important tips for selling with and for your loved ones!

Whether a condominium in a prime A-location or a…

… Condominium in 60/70 prefabricated building:

Extra tip: Bequeath / inherit correctly

Here are a few extra tips for you.

Sale with usufruct

If you are considering a direct, outright sale of your parent’s, grandparent’s or loved one’s property, be sure to take a look at usufructuary rights. Usufructuary right simply means “lifetime, sole right of occupancy.” So, it means that your loved ones hold the sole right to use the property, even after the sale. The same applies in other cases, such as an anticipated inheritance (link above: Inheritance).

Advantage: The usufruct right brings you the advantage that your relatives are not dependent at any time, on the goodwill or the consent of the seller.

Inheritance in advance: Taxes & Co.

Tip. Before it is too late, talk to your parents and grandparents about the inheritance early on. After all, an early inheritance can save you quite a bit, especially on taxes. Learn more about early inheritance here:

• Bequeath correctly

For heirs:

• Inherit correctly

Inheriting correctly also often means preventing disputes among children.

Take care!