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PROPERTY

10 essential tips for avoiding rental scams in Germany

Rental scams are on the rise in Germany, and fraudsters are becoming more sophisticated than you may think. We spoke to a couple who were scammed in Berlin to put together tips to stay safe while house hunting.

Berlin skyline
The Berlin skyline. Be wary of finding affordable apartments in desirable locations, as they could be scams. Photo: picture alliance/dpa | Monika Skolimowska

When it comes to settling in Germany, one of the most stressful and difficult tasks you’re likely to face is finding a place to live.

With the country in the grip of an ever-worsening housing shortage, there aren’t enough rental properties to meet the high demand – especially in big cities like Berlin, Munich and Frankfurt – and the flats that are available can often stretch even the most healthy of budgets. 

With renters desperate to find affordable homes, crafty scammers have seized the chance to place fake ads on the market, often in dream locations with lower-than-average rents. 

While some of these scams may be easy to spot, others can be highly sophisticated, with fraudsters setting up professional-looking websites and even allowing hopeful tenants to view their properties in person.

Recently The Local reported on a Polish couple who lost around €7,000 through a rental scam in Berlin. The scammers had sublet a beautiful Altbau apartment in the popular district of Neukölln and created an advert for it via a fake letting agent website, then arranged for people to use a key box to view the property while the real tenants were away. 

READ ALSO: How sophisticated scammers are targeting desperate Berlin tenants

Despite checking the contract over with legal experts from their local tenants’ association, nobody saw anything out of the ordinary – that is, until they tried to access the apartment and found a family already living there.

So, how do you protect your hard-earned savings and steer clear of scammers while looking for a new home?

Here are 10 important ways to protect yourself from rental scams. 

1. Be alert to suspicious signs 

The key to avoiding scammers in Germany is to be fully clued up on the warning signs. Was the listing for the property uploaded in the middle of the night, is the advert thin on details or written in bad German or English, and does the offer feel too good to be true?

Though it would be nice to believe there are still cheap flats to be found, finding an attractive property at an overly reasonable price is usually a red flag. 

Hamburg

Modern apartments in Hamburg. Photo: picture alliance/dpa | Daniel Bockwoldt

If someone claiming to be a landlord contacts you out of the blue, that’s also your cue to run a mile. With so many people looking for housing, most letting agents and landlords will have more than people looking to rent their properties without needing to get in touch with people themselves. Anyone who does is more than likely to be a scammer.

2. Rule out landlords who say they live abroad

One of the major warning signs to look out for is a landlord who claims to be renting the property from abroad, or who says they are out of the country for other reasons, like a last-minute business trip.

That’s usually a scammer’s way of excusing the fact that they won’t be able to meet you personally or even show you the property before you rent it.

“When the country the landlord lives in appears then I would say there’s a really big chance this is a scam,” said Kuba Rudzinski, one of the victims of the Berlin-Neukölln rental fraud.

Even if the excuse seems plausible, your best bet is to ignore anyone who tries to sell you a story about living abroad and simply move on with your house hunt.

READ ALSO: Why Germany’s housing crisis is expected to drag on

3. Do your research online

Before committing to anything, take time to do some thorough research to scope out the property, landlord and letting agent. 

Running the pictures and text used in apartment listings through a search engine like Google will help you quickly identify stock photos and text stolen from other listings. For pictures, this is known as a reverse image search. 

A laptop

Photo by 2H Media on Unsplash

It’s also worth checking that any websites you’re sent to are fully functional and not copies of other letting agent sites, and that any email addresses match the website domain. 

READ ALSO: How much deposit do I have to pay when renting in Germany?

4. Visit the property and ask around 

Never agree to rent a property without seeing it in person first. Arrange a viewing and take the opportunity to ask questions about the property and the neighbourhood. 

Kuba also recommends speaking with the neighbours in the building to check if the property is genuinely being rented. 

“Go to the place before and ask the neighbours, is this flat really for rent? Because these people generally know,” he said. “You’ll need to convince yourself to do it of course, but just ask in the building, ask on the floor where the flat is.”

5. Don’t transfer the full deposit in advance

Advance payments for anything, whether it’s furniture, a deposit or getting a chance to view the property, should be considered a major red flag.

Under German law, you are usually only expected to pay the deposit by the start of the agreed rental contract – and certainly not several months in advance.

Euro notes lie next to some house keys on a table.

Euro notes lie next to some house keys on a table. Photo: picture alliance/dpa/dpa-tmn | Andrea Warnecke

You are also legally entitled to pay your three months’ deposit in three instalments on top of your first three months’ rent after moving in, so definitely be cautious of landlords that place pressure on you to transfer a large lump sum.

If you’re really concerned, look into alternatives for paying your deposit, such as Kautionversicherung (deposit insurance) or a Mietkautionssparbuch, where you open a bank account and pledge the amount to the landlord, rather than transferring the money directly. 

6. Insist on meeting the landlord or letting agent in person

If a landlord or letting agent refuses to meet you in person or insists on conducting all communication online, they’re probably not who they say they are. 

Insist on meeting face-to-face to verify their identity and ensure they have a legitimate connection to the property.

7. Avoid sending documents straight away 

Not all rental scams are about getting money from you directly: many scammers are simply after your personal details for the purposes of identity theft.

Be wary of providing personal documents or sensitive information before you’ve verified the legitimacy of the rental agreement, especially when it comes to things like passport scans or other forms of ID. 

READ ALSO: Five common rental scams in Germany and how to avoid them

8. Seek legal advice from experts

If you’re unsure about any aspect of the rental agreement or if something seems suspicious, seek advice from legal experts or tenants’ associations. 

However, be aware that this isn’t always a cast-iron guarantee that a tenancy is legitmate. Over the past few years, fraudsters have become increasingly sophisticated, even down to producing water-tight rental contracts for would-be tenants. 

An estate agent hands over keys to an apartment. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

According to civil lawyer Emilia Tintelnot, becoming a member of a tenants’ association can be a good way to get affordable legal advice, and it can also be helpful to set up legal insurance to ensure you can access help when you need it without having to pay lawyers’ fees up front.

9. Be wary of stereotypes 

Avoid making assumptions based on stereotypes or preconceived notions about someone’s gender or nationality, as this may cause you to overlook things you might otherwise see as warning signs.

In Kuba’s case, the fact that the fraudsters were German made them appear more legitimate in his eyes, as Polish people tend to see Germans as law-abiding and trustworthy. 

Be aware that scammers can come from any cultural background and may use a variety of tactics to deceive unsuspecting renters.

10. Keep an extensive paper trail 

Document all communication, agreements, and transactions related to the rental process, including phone numbers and any bank details provided.

According to the Berlin police, this type of evidence can be crucial for an investigation if you do suspect a scammer.

While evidence can differ across cases, “pictures, contact details used by the perpetrators, original documents, bank details with payment receipts” are particularly helpful for investigators, and could help the police stop the scammers for good. 

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WORKING IN GERMANY

‘Far too low’: How millions of workers in Germany are earning less than €14 per hour

Germany is known for being a country of well-paid workers. But new statistics from the government reveal that more than eight million people are taking home less than €14 per hour, prompting fresh calls to raise the minimum wage.

'Far too low': How millions of workers in Germany are earning less than €14 per hour

“Good work deserves a decent wage – that’s just about respect,” wrote the centre-left Social Democrats (SPD) in their election campaign back in 2021. 

When Olaf Scholz’s party entered government as the largest partner in the traffic-light coalition, one of their flagship pledges was to bump up the minimum wage to €12 per hour – a major increase from the previous €10.45.

The SPD kept their promise and on October 1st, 2022, the €12-per-hour minimum wage came into force in Germany. 

Just 18 months later, however, there are once again rumblings of dissatisfaction as left-wing parties call for another hike in wages for the lowest paid in Germany.

What do the lowest workers earn in Germany – and where do they work?

Currently, more than eight million workers – amounting to around 10 percent of the population – earn less than €14 per hour in Germany.

According to the Labour Ministry, around 8.4 million people were employed at hourly wages below €14 as of April 2023, with around 7.1 million of them in the western states. 

The proportion of these workers is particularly high in the hospitality industry, with 65.8 percent of workers in cafes, bars and restaurants earning less than €14 per hour. According to the latest data, 1.1 million employees in this industry fell below the €14 threshold. 

In retail, the number of workers earning below €14 per hour was even higher at 1.6 million. Meanwhile, in the service sector, 45 percent of the some 1.46 million workers fell into this bracket. 

The data on low earners was released in response to a parliamentary question from the left-wing Linke party and was first reported on by Spiegel on Monday. 

Following an increase at the start of the year, the current minimum wage is set at €12.41. However, €14 is a significant benchmark because it represents 60 percent of the median wage in Germany. According to an EU directive, the national minimum wage should be no less than this figure. 

READ ALSO: Minimum wage violations on the rise in Germany – Are you getting paid enough?

Why is the minimum wage such a heated issue?

Workers in Germany are in many ways facing a perfect storm right now. 

In the months it took for the SPD to bring in the €12 minimum wage, an energy crisis brought on by Russia’s war on Ukraine had sent prices spiralling in Germany.

In 2022, the cost of living rose by a staggering 6.9 percent compared to the previous year, dropping off just slightly to 5.9 percent in 2023. 

Though inflation has tailed off in recent months, employees are still facing prices of everyday goods that are in some cases double what they were just a few years ago.

Groceries lie on the conveyor belt at the checkout in a supermarket in Bavaria.

Groceries lie on the conveyor belt at the checkout in a supermarket in Bavaria. Photo: picture alliance/dpa | Sven Hoppe

At the same time, economic uncertainty has made employers reluctant to increase wages, and those on minimum wage have only had modest pay increases over the past few years.

Last year in June, Germany’s minimum wage commission proposed an increase of just 41 cents each year for this year and next, bringing the minimum wage up to €12.41 at the start of January 2024 and up to €12.82 in January 2025. 

At the time, the decision was described as “scandalous” by labour experts and trade unions, who slammed the fact that the tiny increase would amount to a real-terms cut in wages for the lowest earners. 

There was also tough criticism over the fact that the decision by the minimum wage commission had not been unanimous.

READ ALSO: Why Germany’s proposed minimum wage increase has been called a ‘scandal’

How is the minimum wage decided in Germany?

Since the statutory minimum wage was established in Germany back in 2005, a committee called the Minimum Wage Commission (Mindestlohnkommission) has been responsible for making recommendations on how high it should be. 

This committee consists of three employer representatives and three worker representatives who vote on the proposed changes, as well as two government-appointed advisors who don’t have voting rights.

Every two years, the commission decides on adjustments to the minimum wage for the next two years, and these proposals are then approved by the government. 

Controversially, the latest proposals from the Minimum Wage Commission didn’t receive unanimous approval, with the employee representatives on the panel claiming to have been outvoted.

This has recently led to calls from SPD co-leader Saskia Esken for the rules to be changed so that decisions by the commission can only be reached by consensus. 

READ ALSO: What are Germany’s top-paying jobs?

What proposals are on the table for the minimum wage?

Though the SPD haven’t united on a figure for the coming years, numerous voices in the party have spoken out in favour of a significant increase for low-paid workers.

Speaking to RND on Wednesday, Esken described the current increases as “far too low” and stated that the next minimum wage “must definitely be high enough to ensure that single people can live on it without falling into poverty if they have a full-time job”. 

This echoes calls from SPD co-leader Lars Klingbeil for a “significant increase” in the minimum wage next time around.

SPD co-leader Lars Klingbeil speaks at an EU election event in Hamburg.
SPD co-leader Lars Klingbeil speaks at an EU election event in Hamburg. Photo: picture alliance / Sebastian Gollnow/dpa | Sebastian Gollnow

Going one step further, Petra Köpping, the leading SPD candidate in Saxony, suggested a minimum wage of at least €15 per hour.

Meanwhile, the leftwing Linke party wants the government to change the law so that the national minimum wage can’t fall below 60 percent of the median salary, which currently amounts to €14 per hour.

An EU directive on fair wages that must be implemented in Germany by November 15th, 2024, suggests that the minimum wage should be set at least 60 percent of the median salary, and that collective bargaining agreements should cover at least 80 percent of the workforce. 

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