Finding an apartment in Germany can be challenging for foreigners, as it requires not only an understanding of local regulations but also good financial planning. How should you prepare your finances when renting an apartment in Germany from abroad? In this article, we will cover the key aspects: currency exchange, transfer methods, payment systems and building a credit history, as well as explain how Livus simplifies the rental process for international tenants.
Currency exchange: How to prepare for rental payments in Germany
Germany uses the Euro (EUR), and for foreign nationals it is important to exchange their currency into euros. There are several ways to do this:
- Exchange at banks and exchange offices: Banks and exchange offices in Germany are one option for exchanging currency. However, they often do not offer the best exchange rates and may charge fees.
- Using ATMs: If you have an international card, you can withdraw money directly from ATMs in Germany. However, it is important to check the fees and exchange rates.
- Online exchange services: Services such as Wise (TransferWise) and Revolut enable advantageous currency exchange and money transfers at the best rates.
Transfer methods: How to send money to a German bank account
For international tenants, it is important to be able to transfer money to the landlord’s bank account in Germany. Here are some ways to do this:
- International bank transfers: This is a reliable method, but it can take several days, and banks often charge high fees for international transactions.
- Online payment systems: Wise (TransferWise) and Revolut offer transfers with low fees and favorable exchange rates.
- PayPal: PayPal is another popular method for transfers, especially for one-time payments.
Payment systems in Germany: How to make regular payments
Regular payments are an important part of rent payments, and in Germany there are several ways to make them:
- Direct debit (Lastschrift): This is a popular method for automatic payments, where the tenant authorizes the landlord to automatically debit the rent from their bank account each month.
- Bank transfers: Tenants can make monthly transfers, usually direct transfers to the landlord’s bank account.
- Online payments: Payments via PayPal, Sofort or Giropay are also supported for rent payments, especially for one-time payments.
How to build a credit history in Germany for tenants
For foreigners who do not have a credit history in Germany, it is important to build one to make the rental process easier:
- Opening a German bank account: This is the first step towards building a credit history.
- Using credit cards: Maintaining a small balance on a credit card can help you build a positive credit history.
- SCHUFA rating: SCHUFA is the main agency that evaluates your credit history in Germany. If you do not yet have a credit history, this may complicate the rental process, but over time you can build one through banking services.
How Livus simplifies renting for international tenants
Livus uses innovative digital tools to significantly simplify the rental process for international tenants, including:
- Online apartment rental: You can choose a 1-room apartment through the user-friendly Livus website and view all available options without having to be physically present in Germany.
- Video viewing: For convenience, you can sign up for a video viewing of the apartment, which allows you to see the apartment in real time, ask questions to the manager and get a complete impression without visiting the apartment in person.
- Digital signature: Livus offers the possibility to sign the rental agreement digitally, ensuring speed and security without physical presence.
- Personal online account: Every tenant receives a personal online account where they can pay rent, view documents, receive notifications and manage all rental-related questions through a user-friendly interface.
Conclusion
The rental process in Germany for international tenants can be greatly simplified thanks to the digital tools offered by Livus. From selecting an apartment online to digitally signing the rental agreement, all steps of the rental process are easily accessible. To prepare financially, important aspects such as currency exchange, transfer methods and setting up payment systems must be considered to ensure a smooth rental process.
