The rental of fitter’s apartments is a shop that at first glance seems simple. In fact, however, there are numerous cost factors behind every offer that landlords have to calculate. From the purchase of the furniture to ongoing operating costs to administrative expenses, there are various expenses that are included in the pricing. It is helpful for tenants to understand these cost factors, as they explain why prices are different and where the actual value of accommodation is. This text sheds light on the most important cost points from the landlord’s point of view and shows which expenses are incurred when providing fitter accommodation.
Purchase and setup costs
Before a fitter’s apartment can be rented, it must be fully furnished and equipped. This initial investment is significant and must be refinanced through rental income. Complete equipment for an apartment with four sleeping places costs between 5,000 and 12,000 euros, depending on the quality of the furniture and appliances.
The necessary purchases include robust beds with good mattresses, as they are heavily used. A high-quality single bed with a mattress costs between 300 and 600 euros. There are also cupboards, tables, chairs and shelves for each room. The kitchen must be fully equipped with stove, refrigerator, microwave, dishes, pots and cutlery. Washing machine, TV and WiFi router are also standard.
Unlike normal furniture, these items must be particularly durable. Fitters change frequently, and not all of them treat the facility with care. Landlords therefore often rely on cheaper but robust furniture instead of high-quality designer pieces. Nevertheless, the initial equipment is a significant cost point, which will only pay for itself over several years.
Running Costs
The biggest regular expenses are the utilities. Electricity, water, heating and the Internet incur monthly costs, which are often higher for fitter apartments than normal apartments. The reason lies in the more intensive use by several people and the constant change of the residents.
With an average apartment for four people, the monthly additional costs are between 150 and 250 euros. In winter, the heating costs increase significantly, in summer the electricity consumption due to more frequent showering and laundry. Many landlords calculate these costs as a flat rate in the rental price in order to simplify the billing.
Insurance is another important cost. Building insurance is mandatory, and there is often special landlord liability insurance. Household contents insurance for furniture is also useful. These insurances together cost several hundred euros per year.
Important running costs at a glance
- Additional costs: 150-250 euros per month
- Insurance: 300-600 euros per year
- GEZ fees: around 220 euros per year
- Internet connection: 30-50 euros per month
- Property tax and municipal taxes
cleaning and maintenance costs
A frequently underestimated cost is cleaning. In the case of fitter apartments, the cleaning effort is considerably higher than with normal rentals. After each departure, the apartment must be thoroughly cleaned, which is quickly expensive if there is a frequent change of tenants.
Professional cleaning staff charge between 40 and 80 euros per cleaning, depending on the size of the apartment. With 20 tenant changes a year, this adds up to 800 to 1,600 euros. Some landlords clean themselves, but have to take their working hours into account. The final cleaning fee, which tenants often pay, usually only covers part of these costs.
Maintenance and repairs are also regularly required. Furniture breaks, electrical appliances have to be replaced, walls need a new coat of paint. On average, landlords should cover around 10 to 15 percent of the rental income for maintenance. For an apartment that brings in 1,500 euros per month, that’s 150 to 225 euros per month.
Typical repairs and their costs
- Replace defective washing machine: 300-500 euros
- Replace mattresses: 200-400 euros per piece
- Renovation after heavy wear: 1,000-3,000 euros
- Small repairs (lamps, door handles, etc.): 50-200 euros per month
Administrative and time expenditure
The administration of fitter apartments requires considerable time. Booking requests must be answered, check-ins are organized, invoices are written and problems solved. Professional landlords with multiple accommodations often employ their own staff for these tasks.
Booking management includes answering inquiries, creating booking confirmations, organizing keys and communicating with tenants during the stay. Accounting with invoicing and dunning costs also takes time. Many landlords use special software, which also costs money.
Marketing and advertising are other cost factors. In order to rent out the fitter accommodation directly, you need a website, entries in booking portals and possibly advertising in specialist journals. Professional photos of the accommodation cost several hundred euros, but are important for a successful rental.
Taxes and Taxes
Landlords have to pay tax on the income from fitter apartments. The tax burden depends on the personal tax rate and can be significant. Trade tax can also apply if the rental is commercially operated, for example through additional services such as breakfast or cleaning service.
Sales tax is usually due for furnished accommodations with short rental periods. Landlords therefore have to pay 7 percent sales tax to the tax office, which reduces the actual income. In the case of longer rentals over six months, the rental can be considered normal living space rental, which is exempt from sales tax.
Risk factors and downtime costs
Last but not least, landlords have to reckon with vacancies and payment defaults. The apartment is not rented every week, especially in regions with seasonal fluctuations. The average annual utilization of good fitter apartments is 70 to 85 percent. The rest of the time causes the apartment to cost without generating any income.
These diverse cost factors explain why fitter apartments cannot be offered at will. Landlords must work economically and include all costs in their price calculation in order to be able to survive in the long term.