Private landlords: Indispensable, but underappreciated

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Why Germany should value its private landlords more.

They provide approximately 16,1 million apartments. Their motives are mostly down-to-earth: retirement planning, wealth accumulation, preserving property for children and grandchildren, and, not least, social responsibility. Statistically, the typical private landlord is 54 years old and rents out an average of 3,6 apartments. More than half provide exactly one apartment. In this way, private landlords ensure, on a small scale, what is often discussed on a larger scale: affordable housing. Without this stock, the market would be significantly tighter – at a time when there is already a shortage of around 1,4 million apartments in Germany. In public discourse, the contribution of private landlords is often undervalued. Instead, terms like "rent shark" are increasingly used, which oversimplify and thus paint a distorted picture.

Rental income in relation to total income

Growing demands, harsh tone

Increasing requirements apply to everyone who provides living space: heating cost regulations, building energy law, new requirements for photovoltaics, rising energy efficiency standards. For private landlords, this means they need to acquire knowledge, invest money and time, and have reliable partners for all aspects of property management.

Against this backdrop, the tone of the debate is often fraught. In talk shows, campaigns, and on social media, tenants are sometimes even actively encouraged to take action against landlords. The distinction between a few "bad apples" and the vast majority of responsible landlords is no longer clearly defined. This makes the role of interest groups like Haus & Grund all the more important, as they support their members and demand more objectivity in the discussion.

Structural trends are making appreciation even more important: The average age of private landlords is rising. Younger people are hesitant to get started. Those who perceive increasing regulations, high interest rates, and a negative image of landlords are less likely to invest in housing. The result: Modernizations and energy-efficient renovations become more difficult – and today's housing shortage will remain tomorrow's.

Central part of the solution

Germany needs strong landlords – both large and small. For them to invest, modernize, and take responsibility, a culture is needed in which landlords are seen as partners, not adversaries. If good, sustainable, and affordable housing is to remain available in the future, there is no way around private landlords. They – together with everyone else who provides housing – are a key part of the solution.

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Author

Patrik Sartor | Teamleiter Unternehmenskommunikation Minol-ZENNER-Gruppe

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