Thuringia's Rent Landscape: Rent Arrears Minimal for Most Residents
Most Thuringians do not find rental arrears to be a significant issue. - Unpaid rental expenses largely disregarded by most Thuringians residents
While ancillary costs have risen, the vast majority of Thuringians manage to keep up with their rent payments. Housing companies reported that rent arrears amounted to €27.8 million last year, representing a mere 3.1% of total rent payments, as announced by the Association of Housing Industry in response to a query in Erfurt.
The level of rent arrears has remained fairly steady over the past few years, with €28.7 million in 2015 and €26.5 million during the Coronavirus pandemic in 2021.
"Housing is crucial to most people," stated the association's director, Frank Emrich, to the German Press Agency. Housing companies have a mechanism in place to identify tenants who fall behind on payments. "If someone is late with their rent, it's obvious. It's not about immediate reminders, but usually there's a call from the social manager, who most larger companies employ." Discussions then center on possible support and payment arrangement options – which seemingly work out.
The actual number of unpaid rents that companies cannot recover was estimated by the association to be €5 million last year, representing less than 1% of total rent payments. Defaults may be due to consumer insolvencies.
More Tenant Support on the Horizon
Emrich attributes relatively stable rent arrears in part to enhanced state support services. "The number of eligible individuals has grown." While rent payments can still pose a challenge for those with low incomes or small pensions, particularly given the surge in ancillary costs, enhanced state aid may provide some relief.
The current average cold rent for municipal and cooperative housing associations in Thuringia is approximately €5.63 per square meter per month, with ancillary costs averaging €3.16 per square meter, though these can vary greatly depending on energy provider prices and regional variances.
Forced evictions over unpaid rent are considered an "extremely rare" last resort by housing companies when all other options have been exhausted.
Terminations of rental contracts due to tenant misconduct were uncommon among the 265,000 apartments managed by the companies. Around 1,000 such terminations occurred in 2024, compared to 930 in 2021 and around 1,600 in 2015.
"Ancillary costs," Erfurt, Thuringia, Rental apartment, Coronavirus, German Press Agency
Extra Insights:
Ancillary Costs in ThuringiaAncillary costs for rental apartments in Thuringia usually consist of utilities, maintenance, and additional fees. Specific figures for Thuringia are not provided, but these costs are generally part of the overall rental agreement.
For holiday apartments, additional costs such as over-occupation charges (e.g., €10 per person per day) might be levied, as observed in some listings.
While not directly related to rental apartments, hotels in Thuringia, such as those in Erfurt and Weimar, impose various fees like city taxes, parking fees, and extra-person charges, which can serve as a benchmark for potential ancillary costs in other rental contexts.
Impact of the Coronavirus PandemicThe COVID-19 pandemic has influenced the housing market globally, including Thuringia. Key impacts include rental rate fluctuations, occupancy level changes due to economic uncertainty, and travel restrictions.
Enhanced cleaning and safety measures to comply with health guidelines, as well as economic pressure on tenants and landlords, may have affected the ability to pay rent and ancillary costs, potentially leading to renegotiations or changes in rental agreements.
- The Association of Housing Industry in Erfurt, Thuringia, explained that ancillary costs like utilities and maintenance were often part of the rental agreement for residential apartments.
- With the increase in ancillary costs, personal-finance management became even more critical for residents in Thuringia to maintain their rent payments. This is thanks to enhanced state support services and policy-and-legislation that caters to eligible individuals.
- The discussions between housing companies and tenants usually revolve around the possibility of vocational training to help individuals improve their personal-finance management and business skills, which can contribute to more sustainable long-term rent payments. This focus on vocational training is particularly relevant in light of the business challenges encountered during the Coronavirus pandemic and general-news events.
