"Renting is no longer profitable" – Why are private landlords withdrawing from the German housing market
More small property owners in Germany are turning to sell their assets, frustrated by rising costs, strict regulations, and the polarized public discourse that often portrays them as enemies in the housing crisis. Many say that renting is no longer financially viable.
Jan Lohmann, 60 years old, sold his apartment near Mannheim and moved abroad. He says, "Renting is no longer viable," referring to the economic uncertainty in Germany, politically driven policies such as the energy transition, and demographic changes. The country is facing a shortage of about one million units, while rents continue to rise.
Andrea Schiffer, a 60-year-old apartment owner in Stuttgart, still rents out her properties but highlights the misunderstanding of the challenges faced by landlords. The increase in maintenance, energy, and tax costs is often placed on landlords, creating tension with tenants. She explains: "The relationship between tenants and landlords is at risk of long-term damage."
The housing market is fragmented, with private owners providing about 64 percent of rental apartments, or approximately 16.1 million units. Many see these properties as an investment for their retirement, but bureaucratic obstacles, energy requirements, and public oversight have slowed the entry of new owners into the market.
Some landlords, like chef Jürgen Mosthaf from Abstatt, learned the lesson the hard way. After renting an apartment to social welfare recipients who did not pay rent, he incurred significant losses in repair costs. Despite careful management and fair rental practices, private landlords feel defamed and financially pressured, leading many to consider selling instead of continuing in a market that has turned against them.