Furnished apartment

A furnished apartment is a rental unit that is rented out fully or mostly furnished-from beds and wardrobes to seating and kitchen appliances. It is intended for tenants who want to live there on a short-term, flexible, or temporary basis without having to transport or purchase their own furniture. Furnished rentals are of particular relevance under tenancy law, as they allow for exceptions to rent control and modified termination rules under certain conditions.

Legal Specifics for Furnished Apartments

If a furnished apartment is also used by the landlord themselves-such as a room in the owner’s apartment-the simplified tenancy law under Section 549 of the German Civil Code (BGB) applies: no statutory requirement for written form, shortened notice periods, and, in certain cases, no general protection against termination. For standalone furnished apartments (without the landlord living in the building), the general tenancy law provisions apply. The rent control law allows for a furnishing surcharge on the maximum permissible rent for furnished apartments, provided it is reasonable-a point of contention in practice.

Fixed-term leases are possible for furnished apartments if there is an objective reason for the fixed term under Section 575 of the German Civil Code (BGB)-such as the landlord’s personal need for the property after the lease term expires. Without such a reason, a fixed term is invalid; the lease is then deemed to have been concluded for an indefinite period. Landlords who wish to rent out a furnished apartment for a limited time should document the reason for the fixed term clearly and verifiably in the contract.

Standard of Furnishings and Handover

When handing over a furnished apartment, a detailed handover report with photographic documentation of the furnishings is particularly important. Damage to furniture can lead to disputes both upon move-in and move-out. The lease agreement should clearly specify which furniture belongs to the apartment, the condition in which it is handed over, and who is responsible for maintenance and replacement in the event of normal wear and tear.

A complete inventory list with a description of each item (manufacturer, age, condition) and supplementary photos protects both parties. For high-quality furniture, it is advisable to have the inventory value appraised, which is then factored into the rent calculation. Landlords should also check whether the inventory is covered by building or household contents insurance-often, separate landlord’s household contents insurance is required.

Furnished Apartments as an Investment

Furnished apartments generally generate significantly higher rental income per square meter than comparable unfurnished properties. For owners of a second home or a property that is temporarily unused, renting it out furnished is an attractive option. For tax purposes, the acquisition costs for furniture can be claimed as business expenses or through depreciation-typically over a useful life of 13 years (furnishings). For commercial furnished rentals (e.g., serviced apartments), VAT liability and special accounting requirements apply.

The downside is higher management costs: more frequent tenant turnover means more work involved in cleaning, move-ins, and repairs. Furniture ages and must be replaced regularly. Landlords should budget for a replacement reserve of approximately 5-10 percent of the inventory value per year. Despite higher rents, the net additional return after deducting these costs is often lower than it appears at first glance.

Short-term rentals vs. long-term furnished rentals

Furnished apartments can be rented out either on a long-term basis (> 6 months) or on a short-term basis (< 6 months, platform rentals such as Airbnb). Both options have different legal and tax implications. Short-term rentals via platforms require a permit in many German cities and may be prohibited in areas subject to restrictions on non-residential use. In Nuremberg, the Non-Residential Use Prohibition Ordinance applies, which should be checked before any short-term rental.

Practical Tip for Owners in Nuremberg and Franconia

In Nuremberg, demand for furnished apartments-particularly from commuters, young professionals, and expatriates in the tech sector (Siemens, Schaeffler, adidas-related companies)-remains consistently high. Those offering a well-equipped furnished apartment in a central location or near the trade fair grounds often command a 20 to 40 percent premium over the local standard rent (excluding utilities). Apartments with high-speed internet access, a fully equipped kitchen, and a washing machine are particularly in demand.

We advise landlords on how to optimally market their furnished properties and utilize legally sound lease agreements. We also assist in correctly assessing the appropriate furnishing surcharge within the framework of the rent control law.

Frequently Asked Questions

Does the rent control law also apply to furnished apartments?

Yes, the rent control law generally applies to furnished apartments as well. However, a reasonable furnishing surcharge that reflects the value of the furnishings is permitted. What is “reasonable” is not precisely defined by law and leads to disputes in practice. As a guideline: The monthly furnishing surcharge should not exceed 1/240 of the current market value of the furnishings.

Do I need to use different lease agreements for furnished apartments?

In principle, a standard lease agreement with additions can be used. However, a specialized lease agreement is recommended, one that clearly regulates the furniture surcharge, inventory list, liability for furnishings, and notice periods. For short-term leases (e.g., a contract for specific work), a fixed-term lease agreement with a sufficient justification for the fixed term should be used.

What happens if furniture breaks during the lease term?

Normal wear and tear is the landlord’s responsibility. The tenant must compensate for damage caused by negligence or intentional acts. A detailed inventory list with a description of the condition upon move-in is therefore essential to clearly allocate the burden of proof in the event of a dispute.

How high should the furniture surcharge be set?

A reasonable furniture surcharge is based on the current market value of the furnishings. As a rule of thumb: 1/240 of the current inventory value per month. If the furnishings have a current market value of 12,000 euros, this results in a monthly surcharge of 50 euros. Excessive surcharges can be reclaimed by the tenant-careful calculation protects against later claims for reimbursement.

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