The Ultimate Guide to Airbnb Hosting in Germany: Top Markets and Essential Regulations

Are you curious about becoming an Airbnb host in Germany?

Germany sits right in the heart of Europe, a delightful mix of old-world charm, vibrant culture and modern sophistication — perfect for any host looking to share this special place with travelers.

Why Germany is a Profitable Destination for Airbnb Investments

Think of Germany and you can imagine yourself strolling past enchanting castles, soaking up lively cultural scenes or relaxing in a welcoming beer garden. Sounds pretty amazing, right?

In January 2024, Germany welcomed nearly 1.86 million visitors, solidifying its status as a top travel destination. The vacation rental market is flourishing, supported by several key trends:

• Direct-to-consumer platforms: Booking platforms that connect guests directly with hosts are transforming the market, making it easier and more personal.
• Eco-friendly accommodations: A growing preference for sustainable living is drawing in environmentally conscious travelers.
• Regulatory and scenic appeal: Germany’s strict safety standards, coupled with its variety of settings from lively urban centers to serene countryside, add to its charm.
• Economic and remote work trends: A strong economy and the rise of remote working are fueling an increase in demand for short-term rentals.

Getting Started as an Airbnb Host in Germany

Before you get started, let’s make sure you’re well-prepared. Thoroughly research the local area and understand the necessary laws and regulations to help manage your business smoothly.

Here’s a friendly guide to get you started on the right foot:

Registration

Register your vacation rental with the German authorities, including making a trip to the local tax office (Finanzamt), the registration office (Einwohnermeldeamt) and the Business Department (Wirtschaftsamt). If you’re not from Germany, you’ll also need to stop by the immigration office (Ausländerbehörde).

Permits

Many German cities, including major hubs like Berlin and Munich, have specific regulations for short-term rentals, often requiring a permit.

It's crucial to understand the rules in your area, so reaching out to your local authorities is a great first step. This connection will help you gather all the necessary information to ensure you can host guests smoothly and without any issues.

Safety first

Making sure your property is safe for guests is not just important—it's essential. This means complying with all relevant safety regulations, such as ensuring your fire alarms are working and your building meets safety standards.

Insurance

Getting the right insurance coverage is crucial for protecting your hosting venture. This usually includes liability insurance and may also cover property damage, so you're covered in case of accidents or mishaps during a guest's stay.

Handling taxes

As an Airbnb host, you're required to declare your rental earnings. Register with the tax authorities and keep detailed records of all your income and expenses. Staying organized will help you manage this aspect smoothly.

Top 7 Airbnb Markets in Germany

1. Berlin: The heartbeat of Germany

Berlin, where the echoes of a tumultuous history meet a pulsing modern vibe, offers an irresistible allure to travelers. The capital city dazzles visitors with its eclectic mix of museums, galleries and electric nightlife, all set against a backdrop of historic landmarks.

The city mandates registration and a permit and restricts rentals to 90 days per year unless it’s your primary residence—striking a thoughtful balance between tourism and residential needs.

From March 1st, 2023, listings without a valid registration number must switch to long-term stays of at least three months and non-residential listings also require a valid registration number or contact details to remain active.

Market Data (AirDNA):

• Average Daily Rate: €148.7
• Occupancy Rate: 71%
• Annual Revenue: €29.6K
• RevPar: €98.7

2. Munich: Tradition meets modernity

Munich, famous for its vibrant Oktoberfest and role as a key business hub, draws visitors all year round with attractions like the lush English Garden and the historic Marienplatz.

If you’re planning to host on Airbnb here, you’ll need to register with the city. Munich’s rules allow you to rent out your entire home for up to eight weeks a year to help preserve residential neighborhoods, but you can offer individual rooms without a permit provided they occupy less than 50% of your home’s floor space.

Permits for using residential units for non-residential purposes can be granted if public concerns are met or through replacement housing or payment, with authorities having up to 12 months to decide on permit applications.

Market Data (AirDNA):

• Average Daily Rate: €153.9
• Occupancy Rate: 57%
• Annual Revenue: €23.2K
• RevPar: €84.5

3. Hamburg: Gateway to the world

Hamburg, celebrated for its rich maritime history and modern marvels like the Elbphilharmonie, captivates a diverse array of visitors as a major port city.

Under the Hamburg Housing Protection Act, hosts are required to register and display a housing protection number, permit or business details on their listings.

For those renting out their primary residence, it's possible to do so entirely for up to 8 weeks a year without a permit. However, for longer rentals or those involving secondary residences, obtaining a permit from district offices is necessary.

Market Data (AirDNA):

• Average Daily Rate: €129.3
• Occupancy Rate: 69%
• Annual Revenue: €24.5K
• RevPar: €83.5

4. Cologne: A cultural tapestry

Cologne, famous for its awe-inspiring cathedral and thriving art scene, attracts a broad spectrum of visitors, particularly during its notable trade fairs.

Hosts must obtain a permit for short-term rentals exceeding 90 days per year, with exceptions such as students who may rent up to 180 days annually.

Market Data (AirDNA):

• Average Daily Rate: €125
• Occupancy Rate: 60%
• Annual Revenue: €20.7K
• RevPar: €70.8

5. Nuremberg: Steeped in history

Nuremberg, with its medieval charm, becomes especially magical during its renowned Christmas market.

If you're considering hosting here, local rules might require you to obtain a permit. These regulations help ensure that residential properties aren't overwhelmed by vacation rentals, preserving the hometown atmosphere that makes Nuremberg so special.

Market Data (AirDNA):

• Average Daily Rate: €107.8
• Occupancy Rate: 57%
• Annual Revenue: €18K
• RevPar: €60.2

6. Frankfurt: Europe’s financial nexus

Frankfurt shines brightly as a global financial hub, attracting both business travelers and tourists with its distinctive skyline marked by towering skyscrapers like the Main Tower.

Hosting in this bustling city are required to register with the local authorities. Fortunately, you can easily obtain a permit for short-term rentals if you’re offering your entire primary residence for less than 8 weeks per year or just renting out an individual room.

Market Data (AirDNA):

• Average Daily Rate: €93.6
• Occupancy Rate: 50%
• Annual Revenue: €13.6K
• RevPar: €44.4

7. Dusseldorf

Düsseldorf, known for its fashion, art and modern architecture, offers a perfect blend of upscale charm and riverside relaxation.

For those planning to host here, remember that any living space for short-term rentals must be registered if rented out for more than 90 days a year, though students may rent up to 180 days.

From July 1, 2022, all hosts need to display a "Wohnraum-Identitätsnummer" (housing identity number) or company details for non-residential or long-term rentals online. This requirement helps maintain transparency and the city's welcoming atmosphere. To get started, you can apply for your housing identity number through the NRW construction portal.

Market Data (AirDNA):

• Average Daily Rate: €128.4
• Occupancy Rate: 51%
• Annual Revenue: €18.7K
• RevPar: €63

Opening Your Doors to Germany

Germany's rich culture, historic cities and lively spirit invite you to become a warm host—sharing steins in cozy Munich pubs or wandering through Nuremberg's festive Christmas markets with your guests.

By getting to know the local regulations and tapping into the distinct vibe of each city, you can flourish in this vibrant rental market. Plus, using an all-in-one vacation rental software like Hostaway can truly transform your hosting experience—it simplifies managing your listings, enhances communication with guests and optimizes your bookings.

So, with a little planning and the right tools, you can unlock the exciting possibilities of Airbnb hosting in Germany Are you ready to share the magic of Germany with the world?