Housing Associations / Wohnungsbaugenossenschaften
In every city there are many housing associations, or 'Wohnungsbaugenossenschaften'. These associations typically own and manage properties which are available to rent. The majority of housing associations offer properties of very high quality at affordable prices. Normally there are a range of properties available designed for different types of tenant, such as students, young families and the elderly. You will usually be able to find an appropriate housing association on the internet. Many associations will have special offers for students, and so it is well worth contacting a housing association in your area to enquire about the properties on offer. For an overview of the many housing associations in Germany see wohnungsbaugenossenschaften.de.
Since you are usually required to pay an association fee, it may not make sense for you to apply for a housing association property, especially if you are planning to stay in Germany for a limited period of time.
In general there are no big differences between renting a property from a housing association and renting a property on the open market. In both cases you will pay a set monthly rent, and will tend to have similar rights and obligations detailed in the rental contract. The main advantage that housing associations offer is that their properties are reliably of a high quality, and they tend to be reasonably priced. In addition, repairs will usually be dealt with quickly by a handyman employed by the association. Another advantage is that as a tenant of the housing association you are granted a so-called 'contract for life', whereby the property that you rent in practise becomes your own home. Once you are a member of the association, you are theoretically entitled to rent the property for as long as you wish, naturally assuming that you continue to abide by the terms and conditions of the rental contract. If you wish to move to a different property in the future, perhaps because your personal situation has changed, you can move to another property owned by the association. Of course you are still entitled to cancel your contract and move to any other property, but having done so, you are no longer a member of the housing association.
In order to benefit from these advantages, most housing associations have strict criteria which prospective tenants must fulfil. Firstly, you will need to become a member of the housing association if you are not already a member. This generally involves purchasing shares in the association: the cost of these shares will usually depend on the size of the property you wish to rent. Shares are not always cheap and may cost over €1,000: this will depend on the housing association, the size of the property and the deal they offer you. Typically you will not need to pay a security deposit in addition to becoming a member. Just as a deposit would be returned at the end of your rental term, providing no damage has been caused, the share you buy will be refunded if you leave the housing association. However, you will not normally receive this refund immediately: it may take up to two years for the money to be returned. However, your share money will be invested in a savings account and any interest earned will be returned to you along with the original capital. Although it may seem that there is a lot of bureaucracy involved in becoming a member of a housing association, they are very popular in Germany and typically over-subscribed. You may find that there are long waiting lists to rent an association property.
