Furnished Housing

Furnished living refers to temporary accommodation that is fully or partially furnished, typically for periods ranging from a few weeks to several years. As a housing option, it has expanded significantly in recent years: in addition to traditional furnished rooms in shared apartments, the segment now includes serviced apartments, boarding houses, and corporate housing for business travelers. For landlords, furnished living offers higher rental yields but requires more intensive management and a clear legal definition of the tenancy agreements.

Target Groups and Demand Trends

Demand for furnished living arrangements is driven by a wide variety of groups: Commuters and expatriates need centrally located, fully equipped units for the duration of their assignments. Students and apprentices value furnished shared rooms as an affordable entry-level option. Companies rent furnished apartments as corporate housing for employees on project assignments. Seniors use furnished apartments as a temporary solution after selling their home or during a care situation. This diversity makes furnished living a robust market segment.

The trend toward remote work has further boosted demand for furnished long-term rentals: employees who flexibly change their work locations seek furnished apartments without the commitment of a permanent lease. Platforms such as Wunderflats, Spotahome, or the classic “roommate wanted” listings in the furnished sector have evolved into significant sales channels.

Landlord Perspective: Management and Contract Drafting

Landlords of furnished apartments face different requirements than those of traditional long-term rentals: more frequent tenant turnover, more intensive communication, ongoing maintenance of the furnishings, and more aggressive marketing. The contract must clearly specify the grounds for a fixed-term lease, furnishing surcharges, and liability provisions. For short-term leases of less than six months, a fixed-term lease is recommended; for longer-term rentals, the reasons for the fixed term should be documented in a legally sound manner.

A professional move-in inspection report with photographic documentation of every item of inventory is indispensable for furnished apartments-it protects both the landlord from damage upon move-out and the tenant from unjustified claims. A digital management solution or hiring a specialized property manager pays for itself quickly, especially when managing multiple furnished units.

Distinction: Furnished Rentals vs. Commercial Accommodation

From a legal and tax perspective, it is important to distinguish furnished housing from commercial accommodation (hotels, vacation rentals). Above a certain rental frequency and intensity, the tax authorities may determine that commercial income is being generated and that VAT liability applies. As a rule of thumb: Regular short-term rentals of less than 14 days to different tenants are generally classified as lodging; longer-term leases, even for furnished units, typically remain within the private rental sector.

Special attention must be paid to the regulations on misuse of property: Anyone who uses an apartment permanently as a vacation rental or operates it as an apartment hotel requires official approval in many cities. In Nuremberg, the Misuse of Property Ordinance must be observed; the competent authority can impose fines of tens of thousands of euros. In case of doubt, tax and legal advice is essential.

Returns and Profitability for Landlords

Furnished rentals typically generate 20-40 percent higher rental income than comparable unfurnished properties. However, this additional income is offset by extra costs: depreciation of furnishings, more frequent cleaning, increased administrative expenses, and, where applicable, vacancy risks between tenants. Landlords should prepare a realistic net calculation that takes all these cost items into account before deciding whether furnished rentals are economically superior to traditional long-term leases.

Practical Tip for Property Owners in Nuremberg and Franconia

As a trade fair and technology hub, Nuremberg continuously attracts professionals and executives who stay in the city for several months for projects or training and continuing education. Corporate housing concepts-furnished apartments rented to companies for their employees-achieve above-average rental rates among these target groups, backed by reliable creditworthiness. Units of at least 40 square meters, featuring high-speed internet, a washing machine, and a well-equipped kitchen in central locations or near major employers, are in particularly high demand.

We help owners enter this segment and find suitable corporate clients. Our network includes companies in the metropolitan area that regularly require furnished accommodations for project staff.

Frequently Asked Questions

How does furnished living differ from a serviced apartment?

Serviced apartments go beyond furnished living: they offer additional services such as cleaning, laundry, and reception services and are typically professionally managed. Privately rented furnished living is limited to the apartment’s furnishings without additional services. Serviced apartments also more frequently fall under the lodging category, with corresponding tax implications.

Do I have to report furnished housing separately to the tax office?

Rental income from furnished apartments must be reported on the income tax return (Annex V), just like all other rental income. There are no special reporting requirements, but there are issues regarding the distinction between commercial short-term rentals, which result in different tax consequences.

What insurance do I need as a landlord of furnished apartments?

At a minimum, building insurance and landlord liability insurance. For the contents, separate household insurance for rental properties is recommended. If tenants change frequently, you should also check whether the building insurance covers vacancies and increased tenant turnover.

How do I handle vacancy periods between tenants?

Vacancies occur more frequently with furnished housing than with long-term rentals. We recommend including a vacancy buffer of 5-10 percent of the annual base rent in your return calculation. Professional platforms and a quick response time to inquiries significantly reduce vacancy periods.

Which amenities are particularly in demand for furnished apartments in Nuremberg?

The demand for furnished apartments in Nuremberg is concentrated among skilled workers from Germany and abroad who are on site for projects at companies such as Siemens, Datev, MAN, or the university hospitals. This target group expects functional, modern amenities: high-speed internet (min. 100 Mbit/s symmetrical), a separate workspace (desk, second monitor, or sufficient space), a fully equipped kitchen (dishwasher, microwave, coffee maker), a washing machine in the unit (not in the communal basement), as well as parking or good public transportation access. Apartments that meet these criteria currently command monthly rents of 1,400 to 2,200 euros for 40-65 m² in downtown Nuremberg and the Westend-equivalent to rents of 30 to 45 euros per square meter (net, excluding utilities). Landlords who invest in these amenities position themselves well above the standard of traditional furnished room rentals and thereby attract a more affluent group of tenants.

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