Apartment building - why refurbishment is worthwhile

Multi-family homes are a long-term investment and need to be maintained in order to preserve or even increase their value. In addition to the legal requirements for energy efficiency, renovations offer a great opportunity to increase the attractiveness of the property, retain tenants in the long term and optimize the sales price. But what obligations do owners have? Which modernizations are really worthwhile? And which subsidies can be used?

In this article, you will learn everything you need to know about the refurbishment of apartment buildings, which measures pay off and how you can increase the value of your property.

Legal obligations: What landlords need to consider

1. Energy Saving Ordinance (GEG)

The Building Energy Act (GEG) stipulates that existing buildings must meet certain minimum energy standards. These include:

• Insulation of the top storey ceiling (if it does not meet the minimum requirements)

• Replacement of outdated boilers (depending on the age and type of heating system)

• Obligation to issue an energy performance certificate when renting or selling

2. Maintenance obligations in accordance with the German Civil Code

Landlords are obliged to keep the apartment building in a habitable condition. This includes:

• Maintaining the building fabric (e.g. roof, façade, windows)

• Safeguarding the quality of living (e.g. sanitary facilities, electricity and water). sanitary facilities, electricity and water supply)

• Duty to ensure safety (e.g. protection against hazards caused by dilapidated building components)

If landlords fail to take necessary measures, this can lead to rent reductions or even legal consequences.

Opportunities to increase value: which refurbishment measures are worthwhile

1. Energy-efficient modernization & low ancillary costs as a competitive advantage

Energetic refurbishments not only reduce operating costs for tenants, but also increase the attractiveness of the property and its resale value. In times of rising energy prices, low ancillary costs are a real competitive advantage and make renting easier.

The most important measures include:

• Roof insulation & facade renovation: Reduces heating costs, improves the indoor climate and prevents moisture problems.

• Modern heating technology: Switching to a more efficient form of heating (e.g. heat pump, condensing boiler technology) reduces costs in the long term.

• Window replacement: Triple glazing increases living comfort and significantly reduces energy consumption.

2. Avoid moisture and mould problems

Moisture and mould problems are particularly common in unrenovated old buildings without sufficient façade insulation or modern ventilation systems.

• Uninsulated facades can lead to cold interior walls in winter, on which moisture condenses. The result: increased mould growth, which can affect both the quality of living and the value of the property.

• Missing ventilation systems are problematic in buildings that have been modernized for energy efficiency but are airtight. Controlled home ventilation with heat recovery can help by removing moisture and reducing heating costs at the same time.

3. Home upgrading & floor plan optimization

A well-designed floor plan can significantly increase the market value. Possible measures:

• Combining or dividing apartments to expand the target group

• Adding balconies or terraces to increase the quality of living

• Low-barrier or barrier-free design to make the property attractive to an older target group

4. Modernization of bathrooms & kitchens

Old bathrooms and kitchens are often a K.-o. criterion for prospective buyers and tenants. Modernization with contemporary materials and efficient water technology can increase the rental price and sales value.

5. Digitalization & Smart Home

Technologies such as smart heating control, digital locking systems or charging infrastructure for electric cars increase the attractiveness and ensure the future viability of the property.

Funding opportunities: What financial assistance is available

Refurbishments can involve considerable costs, but the state offers various subsidy programs to relieve the burden on owners.

1. KfW funding programs

The Kreditanstalt für Wiederaufbau (KfW) offers numerous grants and loans for renovation measures, including:

• KfW-Effizienzhaus 261/262: Low-interest loans for energy-efficient renovations

• Single measure funding for insulation, heating replacement or window replacement

2. BAFA grants

The Federal Office of Economics and Export Control (BAFA) supports energy efficiency measures:

• Grants for heat pumps, solar thermal energy and biomass heating

• Funding for energy consultations for planning renovation projects

3. Tax benefits

Owners can claim certain refurbishment costs against tax:

• Special depreciation allowances for energy-efficient modernizations

• Deduction of tradesmen's costs in the income tax return

4. Regional subsidy programs

In addition, many federal states and municipalities offer subsidies for special measures such as façade renovations or photovoltaic systems.

Conclusion: renovation as an opportunity to increase value

Refurbishing an apartment building is not only a legal obligation, but also a great opportunity to increase the value of the property in the long term. Modern, energy-efficient and well-equipped residential buildings achieve higher sales prices, are easier to let and have lower long-term operating costs.

Low ancillary costs in particular are increasingly becoming a real asset, as they not only reduce housing costs for tenants, but also have a positive impact on the rentability and market value of a property.

Use our free online tool to assess possible refurbishments and their impact on property value. As DEKRA-certified experts and real estate agents (IHK), you will receive individual advice on possible modernizations and potential value increases from us personally.

Get an online valuation here now!

Contact:

https://www.von-poll.com/de/immobilienmakler/bremen-commercial