August Property Management Update

Hello From Susanne

A warm hello to all Landlords in Leipzig. Thanks for reading this, our first monthly newsletter. We aim to send out a newsletter each month, around the same time as monthly rental statements are sent. We know you maybe remote from Leipzig, so the aim is to keep you up-to-date with the rental scene in the city and any new developments which may be of interest. We hope you find it useful.

Immosence Team

We continue to grow our team in Leipzig as the number of landlords joining us grows. Last month we welcomed a new member of staff, Frau Helga Huber who will be leading our the production of your monthly accounts. In September, we will have one new member to the team who will assist with general points including letting and tenant matters. In addition, Mat from ProVenture joins me in September to support on growing the business and communication. Mat is an active investor in the city as you know, and has some valuable experience to bring, giving advice on what things investors look for in getting the service right for investors from overseas.

Employment in Leipzig

In a recent report of 100 German cities, Leipzig came number 1 in the rate of new jobs being created. As German as a whole is expanding well with a booming economy, this was a really good indicator for our city. Some of the jobs are as follows:

BMW is going to build the new BMW i3 electro car and the hybrid sports car i8 in Leipzig, therefore BMW invests 400 Mio Euro this brings 800 new jobs.

New BMW jobs in Leipzig

This comes on the back of Porsche announcing the build of the Panamera in addition to the Cayenne, therefore Porsche extends the company area in 2011 it will be a 1000 new jobs and a high-end factory, with all the latest prodcution techniques.

Video Clip on the impact of the Panamera

The airport at Leipzig-Halle continues its rapid growth rate in 2011, with DHL the key operator with their European hub moving here from Frankfurt advertising for 500 new jobs, in addition to the 3000 jobs they created in recent years.. In total DHL invested 300 Mio Euro

DHL's investment in Leipzig

As you will notice, many of the new jobs are being created to the north of the city, underpinning demand in areas like Mockern, Wahren and Gohlis but also across the whole city with well-paid new employment.

Getting Clear on Running Costs- The Warm Rent of a Property

Perhaps the most complex aspect of German property ownership is the understanding of the ancillary or running costs of the property, the so-called “warm rent” associated to each tenancy. Whilst the issue is more complex than in other markets, the action on landlords is minimal as the activity is conducted on your behalf by your manager. But it is good to know what is going on behind the scenes, and any input you could have to make your investment run more efficiently.

Our Guide to Warm Rent (PDF download)

Next Month's Issue

Next month's issue will include guidance to your monthly statement and we will introduce the new quarterly report which will cover more strategic issue of maintenance and development of your investment, based on our inspection.

We will also give a run down of tenant demand in the different locations of the city, where is proving strong, and a guide to rental levels in each suburb.

Do get in touch with any topics that you would find of interest, and we will be sure to include them.

Have a great summer!!