You want to save ten euros each week. But how to get started?
To decide that, you first need to know what your fixed costs, or fixed expenses, are.
Only if you know how much money you need to spend each month
will you be able to find out what your potential savings could be.
Rent makes up a sizeable portion of your monthly fixed costs. It should never be more than 30% of your gross income, though. Make a calculation of how much you earn and what your maximum affordable rent is.
If you are looking for a rented apartment, you have several options. You can rent an apartment in a housing cooperative or from a private owner.
Freely financed means that the owners did not make use of any subsidies for the construction.
Apartments in housing cooperatives are not owned by private individuals, and they are rented to cooperative members only. To become a member, you have to file an application with the cooperative. If you meet their criteria and pay the stipulated fee, you will be granted membership. This will give you access to an apartment at a lower rent than from a private owner.
Most apartments are owned by private individuals. Vacancies are advertised online and in newspapers, or you may be able to find an apartment through an estate agent. The level of rent depends on several factors:
Deposit
On signing a tenancy contract, you often have to pay a deposit to the owner. You are entitled to get your deposit back if you move out, provided that nothing has been broken. If you have broken anything that is part of the apartment’s furnishings, the owner may withhold the deposit.
Commission
If you have found your apartment through an estate agent, you will have to pay commission to him/her. The commission is usually set at two months’ rent.
Key Money
If the previous tenant has bought furniture he or she does not want to remove and which you want to keep, you can buy it. In that case you have to negotiate and agree on a price with the previous tenant. But you do not have to pay for any other investments made by the previous tenant, such as repair and refurbishing works. Whenever you are asked to pay key money to get a tenancy contract, you should always find out whether you are under any obligation to pay it.
Your consumption costs, i.e. electricity, gas, telephone and internet are NOT included in the rent, you have to pay extra.
Net Rent + Operating Expenses + Value Added Tax
You pay a certain amount of net rent. In addition, there are operating expenses: your share of the payments due for water supply, waste removal, the chimney-sweep, and other public services. These costs can vary from year to year, so you should always check all bills and annual statements closely. If costs suddenly shoot up, you’d be wise to investigate. Finally, value-added tax at a rate of ten per cent is added to the total.
So your gross rent consists of rent, operating expenses and value-added tax.
Try to be well-informed from the outset, and you may be able to avoid unnecessary costs (key money, commission payments …)
Advice and information material are offered by institutions such as the Labour Chamber, tenants’ associations and the Ministry of Social Affairs.Institutionen wie die Arbeiterkammer, Vereine für Mieter:innen, oder das Sozialministerium bieten Beratung und Infobroschüren an.
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