Stuttgart – November 03, 2026 -- Buying a flat to rent out is not automatically a sound investment, says Mireille Funke, owner of FUNKE immobilien in Stuttgart. In her view, purchase price, financing, rental potential, location, condition and the buyer's own circumstances decide whether the numbers work.

Run the numbers before the first viewing

Funke advises buyers to look at economic substance before bathrooms or flooring. That means asking what rent is actually achieved or realistically achievable, what the purchase price, financing costs and running expenses add up to, and which investments may fall due in the coming years. The Deutsche Bundesbank reports a noticeably different interest environment for residential construction loans than in the low-rate years, so calculations must be tighter.

Check the owners' association, not just the apartment

Buyers of a condominium acquire a share in an owners' association, which can carry hidden obligations. Funke's checklist: How large are the association's reserves? Which renovations are already approved? Is work on the roof, heating or facade pending? What would your share of a special levy be? FUNKE Immobilien's valuations draw on the declaration of division, co-ownership shares, the economic plan and the collection of resolutions.

A high yield alone does not make a good deal

Location influences the purchase price, how easily a flat can be let and how easily it can be resold. A high-quality renovation can disappoint if the target group avoids the street or neighbourhood. Funke also urges buyers to check local vacancy and the rents that can actually be enforced. A property several hundred kilometres away still means owners' meetings, repairs and tenant changes.

Landlord duties turned one purchase into a loss

Funke describes an inexperienced buyer who relied on help from their own circle to let a flat. The lease lacked the expected provisions, and utility-cost statements were missed. The flat was eventually sold at a loss.

First-time buyers should secure financing first

Funke recommends setting the price ceiling, affordable monthly payment, available equity and a budget for renovations and surprises before browsing listings. Her advice is to see a financing adviser first. Clarified financing also gives buyers a stronger standing with sellers and agents.

Renovations cost time and rent

Coordinating tradespeople, supervising work and absorbing delays all take effort, while running costs continue without rental income. Funke says buyers should also check whether the achievable post-renovation rent justifies the total cost, and clarify tax treatment with a qualified adviser before major work.

Funke does not rule out property as an investment. She sees it as a possible part of long-term wealth building and a way to secure a future home for personal use.