Market Economics and Competition in the Housing Business – Horror Vision or Shaping-up Therapy?

Thomas Zinnöcker

About  % of all rented apartments in Germany are already let on the
basis of private-sector rental criteria. Against the backdrop of the justified and to date unanswered question concerning the future role of the State in the housing market, interest shown in that market by foreign investors is interpreted one-sidedly to be a dramatic potential threat. In the mainly uncritical markets which account for the majority today, there is competition for tenants as all participants are interested in long-term customer retention. As long as contractual obligations are met, no tenant will suffer from the changes of ownership because the rights assigned to him through the rental agreement remain in effect. Quite the contrary, any new owner will endeavour to safeguard and enhance a smooth-functioning business relationship. This article gives an overview of the ways that can be accomplished.