Airbnb In Cologne: A Viable Option?

Yes, Airbnb is legal in Cologne, Germany. The city is the largest in the western state of North Rhine-Westphalia and the fourth-most populous in the country. There are currently 1534 Airbnb listings in Cologne, with 62% of entire houses earning up to €1,255 a month. The Airbnb offerings include 26% private rooms and 12% apartments.

Cologne is a bustling modern metropolis with various attractions, including the stunning Cologne Cathedral, an iconic work of gothic architecture, and the Museum Ludwig, which houses a rich collection of works by Pablo Picasso.

There are numerous Airbnb options in Cologne, from modern apartments in the popular Belgian Quarter to spacious family homes with gardens.

Airbnb in Cologne is legal but comes with strict regulations

Airbnb in Cologne, Germany, is legal but comes with strict regulations. The city is known for its historical monuments, museums, art galleries, and churches. Some of the must-visit places include the Cologne Cathedral, Ludwig Museum, Romano-Generic Museum, Cologne’s Old Town, and Cologne Zoo.

• Zoning violations: It is prohibited to use more than 50% of the floor space of any residential unit for non-residential purposes for more than 90 days per calendar year.
• A permit is not required if you want to rent out less than 50% of the total size of your residence.
• As of July 1, 2022, it is required to register your listing with the city authorities and display a registration number ("Wohnraum-Identitätsnummer").
• A culture tax is required for the promotion and advancement of culture, similar to Hamburg.

Additionally, hosts are required to collect and retain information about guests for up to three months. Rentals on primary residences have no duration limit, while rentals on secondary homes are limited to 90 days annually.

When it comes to the pros and cons of running an Airbnb in Cologne, here are some points to consider:

Pros:

• Flexibility: You have the option to rent for days, weeks, or months, and you can rent out your space as much or as little as you want.
• Privacy: Short-term rentals offer guests more privacy and space compared to standard hotels, making them ideal for families.
• Higher income potential: Short-term rentals can earn you more money than long-term rentals.
• Good deductions: There are various deductions available to rental property owners, such as cleaning, maintenance, insurance, management fees, and utilities.
• Tax breaks: Short-term rental owners are eligible for favourable home-related tax breaks.
• Less wear and tear: With frequent renters, you can stay on top of small repairs before they become bigger issues.
• Social advantages: You get to meet interesting people from all over the world and potentially make lifelong friends.

Cons:

• Inconsistent payments: If you rely on a stable income, long-term renters may be a safer option as there may be periods without short-term renters.
• Utility costs: Unlike long-term rentals, short-term tenants do not usually cover utility costs.
• Increased risk: There is a higher risk of theft, breakage, or problematic tenants due to the high turnover of guests.
• Additional effort: Running a short-term rental requires more work as you are responsible for collecting payments, scheduling guests, and managing the property.
• Maintenance expenses: As the landlord, you may be responsible for housekeeping, pool maintenance, and general upkeep, which is not always the case with long-term rentals.
• HOA restrictions: Some neighbourhoods may have homeowner association (HOA) rules that make it challenging to rent out your property for short-term stays.

A permit is required for renting residential space for more than 90 days per calendar year

Airbnb is available in Cologne, Germany. However, if you are looking to host your own property on the platform, there are some legal requirements you need to be aware of.

Firstly, Cologne has regulations for short-term accommodation rentals that came into effect in 2014 and were last prolonged in 2021. These regulations apply to all freely financed rental and cooperative dwellings designated as residential before or after the effective date of the regulations.

According to these regulations, a permit from the City of Cologne is required if you want to rent any residential space on a short-term basis for more than 90 days per calendar year. This means that if you are looking to rent out your residential property for less than 90 days in a calendar year, you do not need to obtain a permit.

There are also exemptions to this rule. For example, students can rent out residential spaces on a short-term basis for up to 180 days per calendar year.

In addition to the permit, since July 1, 2022, you must display a registration number ("Wohnraum-Identitätsnummer") online if you are the tenant or owner of the property and wish to rent it out on a short-term basis. This is required regardless of the number of days you intend to rent out the property for. You can apply for this number via the online service at the NRW construction portal.

It is important to note that the legal situation for Airbnb in Germany has become more complex in recent years, with cities like Cologne facing significant problems due to short-term rentals. These include rising rents, displacement of tenants, and issues such as noise pollution and waste management. As a result, many cities have implemented strict regulations and fines for violations.

Therefore, when hosting on Airbnb in Cologne, it is crucial to comply with all local laws and regulations. It is recommended to consult official sources and seek legal advice for the most up-to-date and accurate information.

Hosts must register their listings with city authorities and display a registration number

As of July 1, 2022, Airbnb hosts in Cologne, Germany, are required to register their listings with city authorities and display a registration number ("Wohnraum-Identitätsnummer"). This is a mandatory step for all hosts, as part of the short-term rental policy in the city. The rule applies to hosts who want to rent out 50% or more of the total size of their residence. It is important to comply with this regulation to ensure a smooth and legal hosting experience in Cologne.

The registration process helps the city authorities keep track of short-term rental properties and ensure they meet the required standards. By displaying the registration number, hosts provide potential guests with assurance that their listing is legitimate and authorised by the local government. This can also build trust with guests, as it demonstrates the host's commitment to following the local laws and regulations.

The requirement to register and display a number is just one aspect of the short-term rental policy in Cologne. There are other regulations that hosts should be aware of, such as zoning violations and the culture tax. It is important for hosts to familiarise themselves with all the applicable rules to ensure a positive and compliant hosting experience.

There is a culture tax for the promotion and advancement of culture

Airbnb offers a variety of accommodations in Cologne, Germany, one of the country's largest and most populous cities. The city is a bustling modern metropolis with a rich cultural heritage. Cologne is known for its historical sites and art centres, including the iconic Cologne Cathedral and the Museum Ludwig, which houses works by Pablo Picasso.

When booking an Airbnb in Cologne, guests may be subject to the city's "Tax for the Promotion and Advancement of Culture". This tax is levied on all visitors who stay in accommodations within the city, and it amounts to 5% of the total lodging cost, including VAT. The legal basis for this tax is the "Statute on Charging a Tax for the Promotion and Advancement of Culture in the City of Cologne" of November 18, 2014, which was amended on December 16, 2015.

Business travellers to Cologne were previously exempt from this tax, but as of July 2024, they are also required to pay it. However, there are certain exceptions to this tax. For example, accommodations necessary to avoid homelessness are exempt, and business travellers can be exempted if their stay is for work-related mandatory reasons. In such cases, the guest must complete and submit an official form, signed by their employer, to the accommodation facility before checkout.

The tax revenue generated is expected to be approximately €7 million annually, and it will be allocated to the areas of culture, education, and tourism in Cologne, contributing to the city's cultural advancement.

Cologne has over 3,000 Airbnb listings, with an average occupancy rate of 36%

Cologne, Germany's fourth-largest city, has a thriving Airbnb market, with over 3,000 listings. The city, known for its historical monuments, museums, art galleries, and churches, is a popular tourist destination.

The Airbnb listings in Cologne offer a range of options, from entire houses to private rooms and apartments. The average occupancy rate of 36% indicates a healthy demand for these short-term rentals. The average daily rate of €145 also makes it an affordable option for travellers.

The city's Airbnb offerings provide a unique mix of convenience and comfort. Many of the listings are strategically located near popular tourist spots, such as the Cologne Cathedral, the Diamond Shrub Museum, and the entertainment mile. Some are also situated in lively areas like the Belgian Quarter, known for its restaurants, bars, and boutiques.

The variety of accommodations caters to different traveller needs, with options for couples, solo adventurers, and families. The apartments are well-equipped, with modern amenities, and provide a "home away from home" feel.

With its cultural attractions and vibrant atmosphere, Cologne presents an enticing opportunity for those seeking a unique travel experience. The city's Airbnb market, with its diverse and convenient offerings, plays a crucial role in accommodating visitors to this historic German city.

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