Landlords Face Financial Strain and Legal Battles Amid Germany's Housing Crisis

In Germany's ongoing housing crisis, landlords like the Schütz family from Aholfing, Lower Bavaria, are experiencing significant financial losses and legal difficulties, prompting many to reconsider further property investments. The Schütz family invested 1.2 million euros to build six apartments as a form of retirement provision. However, issues with one tenant who failed to pay the deposit and the first two months’ rent led to a roughly 12,000 euro loss for the family. Despite filing multiple payment orders and ultimately terminating the lease, they had to file three eviction lawsuits to regain possession of the apartment, which was left in poor condition with abandoned furniture. Currently, a fraud investigation is underway against the tenant, who has refused to comment.

This ordeal has made the Schütz family decide against renovating further properties as the economic viability is now questionable. Their experience reflects broader sentiments among German landlords: a survey by the homeowners’ association Haus und Grund found that 65% of landlords cite lack of profitability as the main reason for avoiding renovations. Additionally, 35% struggle with the complexities of tenancy laws, and 30% face bureaucratic hurdles. These intertwined financial and legal challenges are increasing frustration among property owners, often outweighing the potential benefits of modernization.

As the crisis deepens, landlords' reluctance to invest in properties could further constrain housing availability and quality, exacerbating Germany’s housing shortage. The Schütz family's story illustrates how stringent tenant protections and difficult legal procedures, although designed to protect renters, can create significant burdens for landlords, limiting their willingness to improve the housing market through renovations or new investments.