Loss of rent in Germany increases by 20 percent: financial expert warns of financial difficulties

Loss of rent in Germany increases by 20 percent: financial expert warns of financial difficulties

According to a report by www.tagesspiegel.de, the number of damages caused by loss of rent in Germany increased by 20 percent last year. The insurance company R+V, which sells rental loss insurance, reported this alarming development. This particularly affects the more than five million private individuals in Germany who rent out apartments, as they can get into financial difficulties even if rent is lost. Rental nomads who pay no rent and often move from apartment to apartment cause particularly high costs. The apartments are often in poor condition after you move out, which results in additional costs for renovations and cleaning.

This development could have far-reaching effects on the rental market and the real estate industry as a whole. Landlords may become more cautious when selecting their tenants and may increasingly resort to rent loss insurance. This could also lead to rents increasing to compensate for any losses due to rent defaults.

This development could also mean new opportunities for the insurance industry, as demand for rental loss insurance could increase. However, it is important that insurance companies carefully assess the risks as the increasing number of rental defaults could also lead to financial stress in the insurance industry.

Overall, the development points to problems related to rent payments and rent defaults that need to continue to be monitored and analyzed in order to understand and manage possible consequences for various economic actors such as landlords, insurance companies and the rental market as a whole.