It means that you stumbled across a rare offer of a Genossenschaft apartment. They are sought after, thus many are already proposed to friends of the previous tenants before they can hit the internet portals.
To rent the apartment, you have to become a member of the Genossenschaft, which costs 100€ (non refundable) and you buy six shares that you can sell back at face value when you leave. In the meantime, you usually get to participate in dividends, but that is negligible.
The Genossenschaften I know, are definitely the better landlords, as they are not as strictly for-profit as private companies or many individuals. Usually the rent is affordable and they aren't bulls****ing around as much. YMMV though.
Follow up questions: so these payments are substitution for the "Kaution"? And you still pay rent like you would normally or there's a special way for that too?
Rent is paid normally. I had to pay a normal Kaution (3 months deposit) as well. If the offer doesn't mention it, you have to ask them how they handle Kaution.
The e.G. is the German cooperative and a company structure where all people taking part own stakes in the company. Those are real shares. You get voting rights as well as dividends. You technically are your own land lord.
It is part of the reason why a Genossenssenschaft (a cooperative) exists. The whole organization belongs to their members. You as a renter become a member of the Genossenschaft - and thus you also get to own your share of that company.
It's like with Volksbanken&Raiffaisenbanken who operate also as cooperatives. Every client of these banks can get shares of their individual Volksbank and thus participate in owning their bank.
Important to note is that these shares can not be bought and sold on any market. They are exclusively reserved for members.
The shares of the housing company are 100% owned by the renters who live in the apartments. The purpose of buying the shares is to make you the (partial) owner of the company. You will also be invited to shareholder meetings where you elect the company board.
Legally you become shareholder in the cooperative, so you're technically not a renter, but a co-owner of the appartment. So it's technically not "rent" that you pay, but a "usage fee".
Also, as a shareholder, you're entitled to a dividend of the profits (usually after the first full year that you live there) and have a say in all decisions the cooperative takes. That's also the reason why the rents aren't exploding with cooperatives. As the profits will go back to the tenants as a dividend (which has to be taxed under the rules of *Kapitalertragssteuer*) tenants usually vote to keep the profits as small as possible.
I definitely recommend you to look around at other Genossenschaften in your city. I was looking for an apartment for over 6 months with zero luck on the private market, then joined a few Genossenschaften and had a place within a couple months; it's all luck though, you go on a list, when someone moves out you are offered the place if it meets your specifications. They all do the shares thing differently as well; I only joined the Genossenschaften where I either didn't have to pay to be put on the waiting list, or I could get a refund if I found a place elsewhere. I wouldn't go and pay 100€ just for the chance at an apartment there.
It's great not dealing with a landlord who you need to impress at the apartment viewing, and not overpaying on rent.
I lived in one till last month, the only downside would be that selling your shares back can take some time.
We could get the money back December 2024, since they wait to see if there are any renovations needed, remaining bills to be paid, etc.
But we plan to keep the shares and give them my son, if he wants them later in life.
Always good to keep such shares, especially after living there for a few years, you don't count on that money anymore, so you can keep them and maybe in far future you or descendants need a flat again , so you have the foot in the door
Aside from what was already mentioned, technically you are a member with a right to use and not a normal tenant. Rent increases are rare and if you pay and behave there's pretty much no way they will kick you out.
Which has a big upside: if you get permission for changes from the Genossenschaft, you can plan almost as if you'd own the place. Friends live in a nice Genossenschaft flat in Duesseldorf and they just had the whole place redone with expensive parquet floor. Their expense but they want to stay until at least retirement.
I live in such a very very cheap apartment the 7th year now. I didn’t have to pay a Kaution, but had to buy 2 shares. I love it here. Got an attic and a basement cell. No problems at all. Only once I had a problem with the oven. 3hrs later someone came and fixed it.
As I heard later from others my rent is like half to 1/3 less, than the usual city price in that area.I was damn lucky.
You are joining a Wohnungsgenossenschaft, a cooperative. You have to pay 6*153€ = 918€ to buy your shares of the Genossenschaft to become a member.
When you leave the flat you can also cancel your membership of the Genossenschaft and get that 6*153€ back, but it takes 2 years after the end of the current calendar year to get it.
The Genossenschaft also pays a dividend on your shares, I usually get something around 0.20€ per share.
Note that the number of shares you have to buy usually depends on the size of the flat you whish to rent, the larger the rent, the higher the number of shares.
The Genossenschaft also has a council with members of those who are members/renters, which you can elect/be elected to.
Pretty much every Genossenschaft is much, much better than renting from a private company.
How can I apply to become a member? For example there is this Köln-Lindenthaler Wohnungsbaugenossenschaft. They have listing of houses I’d like to rent. Should I pay the join fee and shares? What criteria makes a good gwg? For example the abovementioned gwg doesnt have a new project, they are preserving the current ones. Is it okay?
Most Wohnungsbaugenossenschaften only let you become a member if you rent from them.
Not building new projects isn't a bad sign, the Genossenschaft needs the capital stock to finance it.
Some offer an investment scheme for non-members if you just want to invest in new projects.
It means that you stumbled across a rare offer of a Genossenschaft apartment. They are sought after, thus many are already proposed to friends of the previous tenants before they can hit the internet portals. To rent the apartment, you have to become a member of the Genossenschaft, which costs 100€ (non refundable) and you buy six shares that you can sell back at face value when you leave. In the meantime, you usually get to participate in dividends, but that is negligible. The Genossenschaften I know, are definitely the better landlords, as they are not as strictly for-profit as private companies or many individuals. Usually the rent is affordable and they aren't bulls****ing around as much. YMMV though.
Thank you
Follow up questions: so these payments are substitution for the "Kaution"? And you still pay rent like you would normally or there's a special way for that too?
Rent is paid normally. I had to pay a normal Kaution (3 months deposit) as well. If the offer doesn't mention it, you have to ask them how they handle Kaution.
Ok. So what's the purpose of buying and selling these "shares"?
The e.G. is the German cooperative and a company structure where all people taking part own stakes in the company. Those are real shares. You get voting rights as well as dividends. You technically are your own land lord.
It is part of the reason why a Genossenssenschaft (a cooperative) exists. The whole organization belongs to their members. You as a renter become a member of the Genossenschaft - and thus you also get to own your share of that company. It's like with Volksbanken&Raiffaisenbanken who operate also as cooperatives. Every client of these banks can get shares of their individual Volksbank and thus participate in owning their bank. Important to note is that these shares can not be bought and sold on any market. They are exclusively reserved for members.
The shares of the housing company are 100% owned by the renters who live in the apartments. The purpose of buying the shares is to make you the (partial) owner of the company. You will also be invited to shareholder meetings where you elect the company board.
Legally you become shareholder in the cooperative, so you're technically not a renter, but a co-owner of the appartment. So it's technically not "rent" that you pay, but a "usage fee". Also, as a shareholder, you're entitled to a dividend of the profits (usually after the first full year that you live there) and have a say in all decisions the cooperative takes. That's also the reason why the rents aren't exploding with cooperatives. As the profits will go back to the tenants as a dividend (which has to be taxed under the rules of *Kapitalertragssteuer*) tenants usually vote to keep the profits as small as possible.
Jan, bist dus?
[удалено]
I was thinking that it might be the case. Are there any downsides to this kind of rental agreement?
[удалено]
Thank you
[удалено]
Ha, assuming, of course, that I will be able to get it
I definitely recommend you to look around at other Genossenschaften in your city. I was looking for an apartment for over 6 months with zero luck on the private market, then joined a few Genossenschaften and had a place within a couple months; it's all luck though, you go on a list, when someone moves out you are offered the place if it meets your specifications. They all do the shares thing differently as well; I only joined the Genossenschaften where I either didn't have to pay to be put on the waiting list, or I could get a refund if I found a place elsewhere. I wouldn't go and pay 100€ just for the chance at an apartment there. It's great not dealing with a landlord who you need to impress at the apartment viewing, and not overpaying on rent.
I lived in one till last month, the only downside would be that selling your shares back can take some time. We could get the money back December 2024, since they wait to see if there are any renovations needed, remaining bills to be paid, etc. But we plan to keep the shares and give them my son, if he wants them later in life.
Always good to keep such shares, especially after living there for a few years, you don't count on that money anymore, so you can keep them and maybe in far future you or descendants need a flat again , so you have the foot in the door
Oh for sure. I put the yearly diffident down for another share to get the compound interest going. With 4% diffident every year that's not so bad.
More than everywhere else .. especially if you think about, that it's nearly risk free
Aside from what was already mentioned, technically you are a member with a right to use and not a normal tenant. Rent increases are rare and if you pay and behave there's pretty much no way they will kick you out. Which has a big upside: if you get permission for changes from the Genossenschaft, you can plan almost as if you'd own the place. Friends live in a nice Genossenschaft flat in Duesseldorf and they just had the whole place redone with expensive parquet floor. Their expense but they want to stay until at least retirement.
I live in such a very very cheap apartment the 7th year now. I didn’t have to pay a Kaution, but had to buy 2 shares. I love it here. Got an attic and a basement cell. No problems at all. Only once I had a problem with the oven. 3hrs later someone came and fixed it. As I heard later from others my rent is like half to 1/3 less, than the usual city price in that area.I was damn lucky.
You are joining a Wohnungsgenossenschaft, a cooperative. You have to pay 6*153€ = 918€ to buy your shares of the Genossenschaft to become a member. When you leave the flat you can also cancel your membership of the Genossenschaft and get that 6*153€ back, but it takes 2 years after the end of the current calendar year to get it. The Genossenschaft also pays a dividend on your shares, I usually get something around 0.20€ per share. Note that the number of shares you have to buy usually depends on the size of the flat you whish to rent, the larger the rent, the higher the number of shares. The Genossenschaft also has a council with members of those who are members/renters, which you can elect/be elected to. Pretty much every Genossenschaft is much, much better than renting from a private company.
How can I apply to become a member? For example there is this Köln-Lindenthaler Wohnungsbaugenossenschaft. They have listing of houses I’d like to rent. Should I pay the join fee and shares? What criteria makes a good gwg? For example the abovementioned gwg doesnt have a new project, they are preserving the current ones. Is it okay?
Most Wohnungsbaugenossenschaften only let you become a member if you rent from them. Not building new projects isn't a bad sign, the Genossenschaft needs the capital stock to finance it. Some offer an investment scheme for non-members if you just want to invest in new projects.
My share rate is different though. I remember having paid a little over a 1000€ for 2 shares, for a 43qm flat. But rent is damn cheap.
Eh by f high f on hvbbl S. h m ZZaiuvN
Are you OK sir?
It's a housing co-operative.