Airbnb Hosting in Germany: Top 7 Airbnb Markets To Invest In and Key Regulations

Germany’s got it all – history, culture and stunning scenery. No wonder it’s a tourist hotspot! This means big opportunities for Airbnb hosts.

While the potential is huge, navigating the German market can be tricky. This guide will spotlight the top German cities for Airbnb investment and break down the key regulations you need to know.

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 May 2024, Germany welcomed nearly 3.24 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

These cities have snagged top spots for Airbnb investments, according to AirDNA’s market score. Here’s a closer look at the top 7 Airbnb cities in Germany for 2024: 

1. Gera: The East German revival

Gera is a city with untapped potential, making it a great investment opportunity. After years of being under the radar, it’s now drawing attention for its rich history, beautiful architecture and affordability. 

With property costs still low compared to other German cities, you can get in on the action without spending a fortune. As more folks get curious about East German culture and history, Gera’s popularity is bound to grow, and with it, the demand for short-term rentals. It’s a solid bet for a promising return on investment.

2. Landshut: The Bavarian beauty

Landshut is like walking into a fairy tale with its medieval charm and picturesque riverside views. This Bavarian beauty pulls in tourists with its stunning architecture and the famous Landshut Wedding festival.

With a strong tourism sector, you’ll have a steady stream of guests year-round. Plus, being close to Munich only adds to its appeal. If you’re looking for a reliable investment with a good dose of charm, Landshut’s the spot.

3. Jena: The academic hub

Jena is all about brains and beauty. This university city is buzzing with students, professors and tech professionals, which means there’s always someone looking for a place to stay. Whether it’s for a conference, a semester abroad or just exploring the city’s rich history, Jena’s got a constant flow of guests.

Investing here is a no-brainer if you’re after consistent demand and a little academic prestige to sweeten the deal.

4. Kaiserslautern: The gateway to the palatinate

Kaiserslautern, or “K-Town” as the locals call it, is where German culture meets an international crowd, thanks to the U.S. military base nearby. You’ll find a diverse mix of guests — from military families to nature lovers wanting to explore the Palatinate Forest.

If you’re after a stable market with a good mix of guests, Kaiserslautern offers a pretty sweet spot to invest in.

5. Heidelberg: The romantic haven

Heidelberg is all about romance and history. With its fairy-tale castle and charming old town, it’s a magnet for tourists, honeymooners and scholars alike.

The city’s a top pick for visitors, which means high occupancy rates and the chance to charge premium prices, especially if your property’s in the historic center. It’s the perfect blend of stability and dreaminess for your next investment.

6. Magdeburg: The cultural crossroads

Magdeburg is one of those up-and-coming cities with tons of potential. It’s got a fascinating history, stunning Gothic architecture and a lively cultural vibe that’s drawing in more visitors every year.

With affordable property prices and ongoing development, Magdeburg is the place to be if you want to get in on the action early and see your investment pay off.

7. Braunschweig: The lion city

Braunschweig, also known as Brunswick, is where medieval charm meets modern flair. It’s got plenty of historical landmarks like the famous Brunswick Lion, attracting history buffs, while its lively cultural vibe keeps the younger crowd interested.

Situated in Lower Saxony, Braunschweig’s strong local economy drives a steady demand for short-term rentals. If you’re looking for an investment that offers both stability and growth, Braunschweig is a smart choice.

Opening Your Doors to Germany

Germany’s got so much to offer when it comes to Airbnb investments. Whether you're into the medieval vibes of Braunschweig, the academic energy of Jena or the hidden gem that is Gera, there's something for every type of investor.

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. 

Take Youpartments, led by Founder and CEO Kilian Fenneberg, as an example. They managed to cut their guest management time by 50% thanks to Hostaway. Just think of what you could achieve with the right tools and insights.

With a bit of planning and the right tools, the exciting possibilities of Airbnb hosting in Germany are within your reach.