Can I move into the property myself?

We answer these and many other questions in our video blog episodes.

Here is the transcript of episode 11 to read through:

Basically, you can say that legally speaking you can move into your rented property at any time. However, there are a few notice periods that must be observed. If you give notice, you or your property management must terminate the tenancy on the grounds of personal use, and that can take a little while.

However, your family and you are allowed to terminate the tenancy for personal use and, in principle, move into a rented property. Whether that makes sense is another question. Because then your tenant will no longer be paying off the property for you. If that income is missing, the idea of passive income is gone and there are no tax advantages for an owner-occupied property either.

Because you only get tax advantages from the tax office if you are a landlord. But what if your property is paid off by tenants and the tax office? Should you then not move into your property either?

Of course you can move in then. But then the rental income is lost. And in practice, experience has shown that after 20, 25 or 30 years your idea of living in old age might also have changed. And then you'd rather rent a nice flat in Spain, where you spend the cold winter in retirement. There you pay €1,000 rent and continue to collect the €1,000 every month from your rented property.

So your tenant in Germany pays you the rent for the property in Spain. With a rented-out property you have complete freedom: move in yourself or carry on collecting the rent and instead rent whatever takes your fancy at the time.

And if you want to spend a few months every year in Florida, you rent a property in Florida and your tenant in Germany pays the rent for this property in Florida. It remains your decision what you want to do with your rented-out property: rent it out and use the rental income to have a nice living environment somewhere else in your old age, or move into the property yourself. You have the choice!

Keywords:
personal use, rental income, passive income, tax benefits, living environment in old age, property investment, letting, tax savings, capital investment