Our Services
PROBLEM SOLVING & ASSET OPTIMISATON FOR GERMAN RESIDENTIAL PROPERTY
Property Upgrade Planning
Many investors have owned property for a long time with the their property manager (Hausverwaltung) doing all the services. In Germany, this is a well established business. This is often a low cost, high volume business that lacks the knowledge required for more specialist tasks.
As time goes on, needs or opportunities arise for maintenance programmes or development possibilities. This requires a more sophisticated approach, often with architects, technical experts, tenant negotiators and lawyers. Hausverwaltung is a poorly remunerated and relatively simple profession. Often these companies do not have the expertise to efficiently plan and manage more complex works.
Construction planning is a complex business often involving the local planning authority, the city planning office and the conservation authority in an unwieldy triangulation. We can work with the owner to help them select the right architect and submit the best plans in order to maximise the permitted works.
Some improvement costs can be allocated to the tenants in the form of rent increases. However, this is a set process that must be carried out in the correct way in order to be able to enforce these increases.
German Property Solutions can work alongside existing partners to develop value enhancing renovations or optimise the potential of a building or plot for selling.
Property & Tenant Management Advice
We can set up all aspect of property management for new owners and then help them to improve the rental return and optimise the tenant management.
Equally, we help owners to transition away from the existing setup if the building or the tenants require a more active management.
Tenants in Germany enjoy good protection from excessive change to their rental situation. Rents can only be raised by moderate amounts and under certain conditions. It is often imperative to manage this situation actively in order to maintain a good return on the property.
German Property Solutions can work with the house manager, specialist rental agencies and tenant specialist lawyers in order to help you manage the future development of the building.
Project Management
With many years of experience we can help plan, manage and deliver construction and renovation projects.
Architectural plans can be optimised in terms of investment and returns. Working with our sales partners and house managers we can determine the optimal size and configuration to maximise the return for sales or lettings.
It is also important to use modular construction techniques and standard products in order to minimise the costs.
We can assist with the selection of right team to tender for the work and to oversee the construction process.
Structuring
What is the most flexible and efficient structure in which to own German Property? This is a complex question to answer and the tax treatment varies enormously between companies (e.g. GmbH), partnerships (e.g. GmbH & Co. KG) and individual ownership.
Finding the optimal structure has become even more challenging after Brexit. Many UK based investors now face German withholding taxes on payouts to the UK. This was previously shielded by EU directives.
Furthermore, Trade Tax (Gewerbesteuer) which is part of the corporation tax, varies considerably from one German city to the next.
Tax declarations back in the UK are also not aligned in many cases due to different accounting standards for depreciation and the deductibility of loan interest etc.
This is a complex issue that requires advice from specialists in German and British company law and tax treatment. German Property Solutions can organise advisors in the UK and in Germany and can help you ask the right questions in order to find the optimal structure for your needs. This can be when you create a new project or when you wish to make a property sale in the most efficient way.