From Rent to Utilities: Navigating Living Expenses in Germany
Are you wondering how much it would cost you to live in Germany? Of course, the cost of housing represents a significant portion of your expenses. We’re happy to provide you with a brief overview of what an apartment might cost you in Germany.
Housing Costs in Germany
How much does housing cost in Germany?
We can only provide you with average values for guidance, but the information will serve as a preliminary orientation.
Renting an Apartment in Germany
Let’s start with rental costs. In Germany, rent is usually indicated based on the price per square meter and ranges between €8.00/m² and €20.00/m².
A room in a shared apartment can cost you between €200.00 and €800.00 per month.
In this infographic, you can see an overview of the most affordable areas for renting in Germany.
In major cities like Hamburg, Berlin, Munich, Stuttgart, and Düsseldorf, rents tend to be higher. And, in general, it can be said that rents are more expensive on average in southern Germany than in the central and northern regions.
For example, in Leipzig, you can expect to pay around €8.00 per square meter in rent, while in Munich, it can easily reach €20.00 per square meter.
An example: You can find shared apartments in Leipzig for an average of €350, while in Munich, you can expect to pay €700.
However, Munich doesn’t just encompass Munich. Within the same city, rents can vary from one neighborhood to another. Rents are usually particularly high in the city center or trendy neighborhoods. These are the most popular and modern neighborhoods of the moment, with cafes and trendy shops.
The further you move away from the city center, the cheaper the rents tend to be.
Whether in the city or countryside, one can’t avoid a rather tedious topic:
Additional Expenses - What You Need to Take Into Account:
On average, around €2.50/m² of additional costs are paid directly to the landlord. Additional costs are based on water, heating, and caretaker expenses, for example.
Additional costs are paid monthly in advance along with the rent amount.
- Did you know? Rent payment is due by the third business day monthly, as per law.
Your landlord must provide you with a written statement of additional costs once a year. This statement must be issued within 12 months from the end of the billing period.
What? Can you repeat that, please?
At first, we were a bit lost too. That’s why we read it again carefully. Let’s take an example:
- Let's say your additional costs billing period runs from January to December 2024. In this case, your landlord must send you the statement for 2024 no later than December 2025. This also applies if you move in August 2024.
The amount you pay each month in advance for additional costs is specified in the lease agreement. However, it doesn’t make sense to agree on an amount less than €2.50/m². Because, in the worst case scenario, you may have to pay a significant amount at once when you receive the statement of additional costs to adjust the corresponding amount.
Electricity
Electricity expenses amount to about €30.00 per month. It is not included in the additional costs; you pay it separately.
You can choose your own electricity provider, but you also have to do so on your own and formalize a contract.
There is a wide range of electricity providers to choose from, so take your time or seek advice from a counseling office, such as the Verbraucherzentrale (Consumer Information Center) or Caritas.
Internet and telephone
On average, you pay about €25.00 per month for your internet and telephone at home.
It’s like electricity: you choose your own provider. However, you must first check which companies supply the wiring in your building.
You can get both electricity and internet prices on the respective companies’ websites or compare them on portals like Check24 or Verivox. You can also enter your address on search portals to see which providers are available for your building.
Do you live in the countryside?
Internet connection can be challenging in some parts of Germany.
But there is hope: since December 1, 2021, you have the right to a telephone connection and sufficiently fast internet access. If you have issues with this, you can also directly contact the Bundesnetzagentur (Federal Network Agency).
The Rundfunkbeitrag or GEZ fees
In Germany, each household must pay a fee of 18.36 euros per month for the broadcasting fee.
This is a mandatory contribution to the state radio and television program. As a rule, around € 55.08 are paid quarterly. The fee is not automatically charged to your account; you have to register for it.
For example:
- You live in a shared flat with three other people. For your apartment, you would have to pay € 55.08 every 3 months for the broadcasting fee. In this case, the number of people registered in the household is irrelevant. The fee is applied per household, not per person.
In some situations, you can be exempt from paying the broadcasting fee. For example:
- Students receiving BAFöG (Federal Training Assistance Act),
- Individuals receiving Arbeitslosengeld II (unemployment benefit II) or Bürgergeld (citizen’s benefit).
The exemption is not automatic; you must first apply for it.
You can find more information about the broadcasting fee and exemption requests here.
By the way, it is sufficient for one resident per household to be exempt. That means if one of your flatmates receives Bürgergeld or if you receive BAfÖG, all members of your shared flat will be exempt from paying the fee.
One-time Costs: The Security Deposit
Apartment Confirmation: Check!
Signed Contract: Check!
What else is missing?
Generally, this is the moment when we’ll need to pay the security deposit.
The security deposit is an amount of money that the tenant gives to the landlord before moving into the property. It’s sort of like a security guarantee for the landlord in case something is broken in the apartment during the rental period or if the rent is not paid.
The amount of the security deposit is based on the rent amount without considering additional expenses. Typically, the security deposit corresponds to 2 or 3 months of rent (according to the law, it cannot exceed 3 months). You can transfer the security deposit to an account created specifically for this purpose or directly to your landlord’s account. The company or the landlord must keep the security deposit separate from their own capital and provide you with proof of this. The security deposit will accrue interest.
When you leave the apartment, you will get back the security deposit (with interest) if you have left the apartment tidy and without damage.
However, your landlord is not obligated to return it to you immediately. In general, you will receive the security deposit back between 6 and 12 months after leaving the apartment.
After this summary, you now have a general idea of the expenses involved in searching for an apartment in Germany.
Most Important Points in Summary:
Naturally, the price of an apartment depends on many factors.
However, broadly speaking, one could expect to pay between € 400 and 1,000 per month for a 50-square-meter apartment in Germany.
In Germany, service charges are added to the basic rent.
These are the ‘utility costs.’ In other words, expenses for water, heating, electricity, and internet.
The service charges paid along with the rent are approximately 2.50 €/m² of living space.
Ancillary costs depend, naturally, on your consumption. But they also depend on other factors: Does the building have an elevator? What services does the concierge provide? Does the community of neighbors separate waste effectively?
The rental deposit is a guarantee for the landlord that you will return the apartment in proper condition and always pay the rent.
Your experiences and more information
How much do you pay for your apartment in Germany? Do you live in the city or in the countryside? Share your experience in the comments and share this article with your contacts.
In this article, we explain how to find an apartment in Germany.
To help you get off to a good start in Germany, we provide high-quality sworn translations from English to German.
