Interview: This is what it’s all about

As a traveler, it is important to think about how to expand your accommodation options and create a unique travel experience from the very beginning. Airbnb can be an interesting option here, as it not only allows travelers to discover exceptional accommodations, but can also be an attractive source of income for hosts. By renting out accommodation via Airbnb, you as a host can improve your financial situation and promote tourism in your region at the same time. But how does Airbnb work exactly and what opportunities does it offer for travelers and hosts? In an exclusive interview with an Airbnb expert, you’ll learn everything you need to know to get started with Airbnb.

We conduct the interview with Immobilien-Erfahrung.de (in conversation “IE”). We talk in the interview about:

1. What is Airbnb and is it legal in Germany?
2. How to become a host on Airbnb?
3. What advantages does Airbnb offer property owners?

What is Airbnb?

FIV: Let’s start with an overview first. What do you need to know about Airbnb?

IE: Of course! Airbnb is an online platform where private individuals can offer their apartments, houses or individual rooms for short-term rentals. The platform connects hosts and travelers around the world and offers a wide range of accommodation options for different needs and budgets.

So in a nutshell:

• Online platform for private individuals
• Short-term renting of houses, apartments, rooms, etc.
• Wide reach for members of the platform
• For different needs and budgets

Can anyone legally become a host on Airbnb?

FIV: What about if I want to offer my apartment or house myself? Is Airbnb legal in Germany?

IE: Good question! Basically, anyone in Germany can legally act as a host on Airbnb. However, there are certain requirements that must be met.

The most important aspects to consider are:

• Legal provisions
• Consent of the landlord

It is important to note that failure to comply with the legal rules and regulations can lead to legal consequences. Therefore, before you start renting on Airbnb, it is advisable to learn about the applicable rules and make sure that you comply with them to avoid any problems.

How to become a host?

FIV: An important question that I’m sure many of our readers have now is: How do you get started as a host on Airbnb?

IE: Of course, with pleasure! The process to become an Airbnb host is relatively simple and straightforward. Basically, you just need to follow these steps:

1. Registration on the platform
2. Creation of an advertisement
3. Setting the rules and prices
4. Set availabilities
5. Accept booking requests

As soon as your ad is online, you will receive booking requests from potential guests. You can accept or decline these requests or ask questions to get more information. Once a booking is confirmed, you prepare your accommodation and welcome your guests.

When does Airbnb make sense for owners?

FIV: When does it make sense for owners or renters to become hosts on Airbnb?

IE: Airbnb is useful for hosts in different situations. For example, if you have an extra room in your house or apartment or own a vacation home that you don’t use all year round. It’s also ideal for people who like to meet new people and offer a unique experience.

Advantages for owners with Airbnb

FIV: That sounds simple. What do you think are the advantages that Airbnb offers hosts?

IE: Airbnb is a great way to increase income and return on investment for hosts. The platform allows you to generate additional income by renting out your apartment to travelers. Instead of leaving the apartment empty, you can actively use it to generate income. The additional income can help cover the costs of your apartment and even generate additional profits.

Advantage 1: Avoid vacancy, generate revenue.

IE: Besides that, Airbnb is flexible. You can decide when you want to rent out your apartment. For example, if you are traveling or temporarily not using your apartment, you can simply offer it on Airbnb and profit from the rental income.

Advantage 2: Flexibility and additional revenue for hosts.

IE: Another important advantage is that Airbnb allows you to keep control over your listings. You can set the price, availability and booking conditions yourself. You have the freedom to market and rent your apartment the way you want.

Advantage 3: Self-determination – in terms of prices and availability.

This is what Airbnb host costs

FIV: Are there costs for hosts on Airbnb, such as taxes and fees?

IE: Yes, there are – the platform has to finance itself, after all. First of all, there are Airbnb fees, which are usually a percentage of the rental price. These fees vary depending on the type of rental and the services Airbnb offers.

Hosts pay 3% of the booking cost as a service fee.

In addition, it is important to consider local tax regulations. In some countries and cities, hosts may have to pay sales tax or other taxes on their rental income.

Tips for young hosts

FIV: What tips do you have for young people who want to become hosts on Airbnb?

IE: First of all, you should familiarize yourself well with Airbnb’s policies and regulations so that you can comply with all the rules. It is also important to make your listing attractive by uploading clear and appealing photos and including a detailed description.

• Read and comply with guidelines
• Advertisement with meaningful pictures and descriptions

In addition, you should emphasize communication with your guests to answer their questions and offer them support when needed. This way, you will receive positive reviews, which are crucial for gaining the trust of potential new guests.

• Good accessibility and communication with guests
• Good ratings encourage new bookings

If you want to learn more about it, please visit our blog. Among others, I can recommend the articles Becoming an Airbnb Landlord and Getting Started with Airbnb by our foundation expert.

FIV: Thank you for the insight into Airbnb!

Summary: 10 Learnings about Airbnb

Let’s briefly summarize the most important facts for you.

	Learning Airbnb
1	Airbnb is an online platform where private individuals can offer their apartments, houses or rooms for short-term rentals.
2	Anyone can legally host on Airbnb, but must follow certain legal requirements and landlord consent.
3	The process to become an Airbnb host includes registering on the platform, creating a listing, setting rules and prices, and accepting booking requests.
4	Airbnb makes sense for owners or renters who have extra rooms or vacation rentals and want to generate income.
5	The platform also offers the opportunity to meet new people and provide a unique experience.
6	Benefits for Airbnb hosts include vacancy avoidance and the ability to earn additional income.
7	Hosts must pay Airbnb fees, which are typically a percentage (3 percent) of the rental price.
8	There may also be local taxes that need to be considered.
9	Hosts retain control over their offerings, including pricing, availability and booking conditions.
10	Positive reviews are important in gaining the trust of potential new guests and encouraging bookings.

Are you interested in a building savings contract? Compare immediately current conditions for your building savings contract in the Immobilien-Erfahrung.de building savings calculator.

Fees for the building savings contract

How much does building savings cost? When concluding a bauspar contract, various fees are incurred that must be taken into account in order to enable a realistic cost calculation. These can include, among other things, acquisition and management fees, costs for insurance or processing fees for loans from the bauspar loan.

An overview of possible fees:

1. Connection fee
2. Annual contributions
3. Account management fees
4. Processing fees
5. Early repayment fee

In addition to these fees, other fees may apply depending on the provider. Now you can find out what the fees are and when they apply.

Connection fee

Some building societies charge what is known as a closing fee when a building savings contract is concluded. The fee may vary depending on the provider and tariff. The closing fee is used to cover the costs incurred in setting up the contract, such as preparing contract documents, carrying out credit checks and processing applications.

The connection fee at a glance:

• Contract setup fee
• E.g. for contract documents or credit check

In some cases, these fees are not charged or are already included in the contract terms.

Annual contributions

In order to maintain a building savings contract, many building societies charge annual contributions. The annual contribution is used to cover the costs of managing and operating the contract as well as the interest on the saved capital. Some providers charge lower contributions if you pay in a larger investment amount or choose a longer term, while others charge higher contributions if you pay in a smaller investment amount or choose a shorter term.

The annual fee summarized:

• To maintain the building savings contract
• Annual payment from saver to building society
• Amount depends on various factors

Account management fees

Account maintenance fees are incurred annually or quarterly and are used to cover the costs incurred in administering the contract, such as preparing statements, making transfers, and processing inquiries. The amount of the account management fees varies depending on the provider and the contract.

Use of the account management fee:

• Preparation of accounts
• Execution of transfers
• Inquiry processing

Account management fees for home savings contracts are controversial. In a ruling from 2022, the Federal Court of Justice (BGH) issued a decision on the charging of account management fees for home savings. However, it is currently only valid for customers of BHW Bausparkasse. Some home savings banks therefore do not charge this fee.

Handling fee

Processing fees are mainly incurred in the event of changes to the contract. During the savings phase, you have the option of adapting the contract individually to your circumstances.

Processing fees may apply for:

• Changes to the contract (term, savings target, amount of installments)
• Conducting audits or reviews in connection with the contract
• Preparation of certificates or proofs

The amount of the processing fee varies depending on the provider and can range from a few euros to several hundred euros.

Early repayment fee

The early repayment penalty is also known as a disbursement fee. It is due if you terminate a home savings contract prematurely before the agreed term has expired. It serves to compensate the provider for the lost interest and repayments that he had expected if the contract had remained in force until the end of the term.

Fees apply in the event of premature termination of the contract.

Conclusion and tips for those interested in building savings

It is important to be aware of the provider’s fee structure before signing a home loan contract. You should make sure that you take into account the cost of any additional services to be sure that you choose the offer that best suits your personal needs and goals. Comparing the terms of different providers and contracts can help you make the best choice.

Here are our tips that people interested in building savings should consider before signing a contract:

• Find out about the provider’s fee structure and take this into account in your cost calculation
• Compare the offers and conditions of different providers to make sure you get the best deal for your needs

Back to the Capital Investment editorial.

Risk assessment personal loan: advantages and disadvantages

What are the advantages of a personal loan from my bank? Can I get the loan without SCHUFA? There are many questions, we have the first important answers. For all other questions, it is best to contact your bank advisor or a reputable comparison portal for loans.

Questions about the personal loan

• What are the advantages of a personal loan from my bank?
• Is a given personal loan earmarked for a specific purpose?
• Is a prior credit check obligatory in Germany?
• Can you take out a personal loan without a SCHUFA query?
• What loan amounts are possible with a personal loan?
• Is a personal loan cheaper than dealer financing?
• What are the requirements for a personal loan?
• Can a loan be tax deductible?

Risk assessment

Personal lending is available through various lending portals. The current return of Privat-Kreditvergabe is medium and the risk of Privat-Kreditvergabe is therefore not high. Private lending allows for easy participation opportunities through various lending portals. Of course, there are also disadvantages in the private lending, because when taking detailed information about the providers are necessary to avoid mistakes.

Advantage

• Easy participation via credit brokerage portals

Disadvantages

• Detailed supplier information should be obtained in advance

Application procedure

Applying for a personal loan from the bank is fairly quick if you have a good credit rating.

1. Determine credit amount and term
2. Fill out credit application online
3. Sign a credit agreement
4. Obtain credit

Comparison

Sources: Auxmoney, Giromatch (as of November 2018) via IHV: Personal Loan

Costs

depending on creditworthiness and term
Sources: Auxmoney, Giromatch (as of November 2018).

Statistics

Instalment credit agreements concluded in Germany

Number of new instalment loan contracts concluded in Germany from 2006 to 2018 (in 1,000)

Over-indebted private households

Number of over-indebted private individuals* in Germany from 2004 to 2019(in millions)