What happens if I catch a rental nomad?

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

Here is the transcript of episode 7 to read:

What happens when you catch a rental nomad? First of all, you should know: We have over 40 million tenants in Germany. 40 million people reliably pay their rent every month. This is because it gets cold in Germany in the winter and there are many rainy days. Before a tenant ever can't pay, he will think about how he can keep his rented apartment so that he doesn't end up on the street.

So the tenant will be the very last to stop paying the rent. So already in 40 million cases every month you have a good probability that the tenant really pays his rent. And still you can have the worry: What if it does get me? What if a rent nomad moves into my property?

The fact is that we have around 3,000 to 4,000 potential rent nomads in Germany. But it is also a fact that with 40 million tenants and 3,000 to 4,000 potential rent nomads, the probability that you will catch one is rather low. Concentrate on the 40 million paying tenants and less on the very unlikely cases where it could be different.

We always hand over the rental to a professional management. This checks the Schufa, it checks the tenant's pay slips, it checks that there is proof from the old landlord that he has always paid his rent on time. The administration makes sure that a security deposit is paid. It asks for a reasonable self-disclosure. And if all that has been checked, you have a high probability that the tenant will pay his rent on time.

If you then pay attention to quality real estate and buy the best of the best and make no compromises, then you also have tenants who want to rent the best of the best. If you buy quality, you will also get very good tenants. And that gives you one more reason why you can be sure that your tenant will pay the rent on time.

But what if all this is of no use? Imagine you catch one of these few rent nomads and he littered your property and did not pay the rent. Then the notice is immediately given and he has to move out immediately. But we have not had such a case yet. Now a disposal company would be hired, which with 2 to 3 employees disposes of all the garbage, tears off the old wallpaper and takes the flooring. There costs in the worst case 4,000 - 5,000 €. And that would be the worst case to make everything spiffy again. However, you could then deduct these approx. 4,500 € from your taxes and they would cost you approx. 2,500 or 2,700 € net.

So when you ask about the worst case scenario "rental nomads", remember: if you do it professionally, if you buy the right property and have good management, it is very unlikely that you will catch a rental nomad as a tenant!

Keywords:
Rent nomads, professional management, Schufa, tenant's salary statement, certificate of no objection from previous landlord, self-disclosure, renting, tax savings, inflation protection, capital investment, real estate market, location