Information on Housing Costs in Germany

INFORMATION ON HOUSING COSTS IN GERMANY

3. The tenant pays an estimated pre-payment every month with the rent to the landlord. These costs are mentioned in the rental contract. The total payment will be adjusted at the end of the year according to the actual costs and the tenant’s usage, unless otherwise agreed. The tenant will either have to pay the difference or will be reimbursed for overpayment. 4. For some costs, the tenant often has to sign their own contract directly with utility providers. This often applies for direct energy costs. In most cases the tenant pays monthly, bi-monthly or quarterly instalments and receives a balance according to actual usage once a year. The tenant will either have to pay the difference or he will be reimbursed for overpayment. General costs by property type: + Unfurnished properties: generally, a mixture of option 3 and 4 applies + Unfurnished apartments: generally, option number 3 applies plus number 4 (direct energy costs) + Unfurnished houses: generally, option 4 (tenant has to sign their own contracts for direct energy costs and further costs, e.g. garbage removal, street cleaning). Only a few costs are covered with option 3 (e.g. tax, insurance) For both options 3 and 4, please note: these are not the actual monthly costs but only estimates. Thus, it is not possible to calculate the actual usage costs at the beginning of the tenancy. At the start of a lease its typical to only know which procedure applies (option 3, 4 or a mixture of both) and an estimate of utility costs provided in the draft of the lease contract. We recommend calculating approximately €2.50 – €4.50 per square meter of living area for additional costs to the net rent, depending on family size, kind of property, location in Germany, and individual living habits. Please note this is only general information which may vary. Please keep in mind that these costs are in addition to the monthly rental payments. We kindly ask you to be aware that in Germany energy prices may be considerably higher than in your home country. Further services and costs (not part of the rental agreement): + Rundfunkbeitrag: This is a mandatory license fee for broadcasting services which must be paid by every household in Germany. The fee serves the principle “one flat, one fee”. This license fee must be paid for every flat/property. This is regardless of how many people live there or how many broadcasting capable devices (e.g., TV, radio, computer, tablets, mobile phones) they have or use or if the broadcast service is used at all. This is also valid for foreigners who do not make use of these services. + Individuals sign contracts for, and pay the cost of, personal telephone, internet, and mobile phone services + Individual sign contracts for, and pay the cost of, private liability and household content insurance (if applicable)

*Please note that by German law Dwellworks GmbH is not authorized to give legal advice. Therefore, the above information is based on our previous experience in this regard.

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v. 2018