Finance Stack for German Real Estate Agent

Since 2015, whoever commissions the agent pays the commission for rentals. This means: if landlord hires you, landlord pays (can't pass to tenant). Many landlords now avoid agents or negotiate lower commissions. Agents adapted: more focus on sales, landlord services beyond pure placement, or tenant-focused services. Budget for lower average rental commissions; diversify revenue sources.

Since 2020, for residential sales to consumers, if buyer pays any commission, seller must pay at least equal amount. In practice: often 50/50 split of total commission. This reduced situations where buyers paid full commission. Agents may work for seller, buyer, or both (as intermediary). Commission agreements must be in writing. Total commissions may have compressed in competitive markets.

Key strategies: build reserve (3-6 months expenses), understand pipeline timing (deals closing in 60-90 days = future income), diversify with retainer clients (property managers, relocation services), expense control during slow periods. Track deals by expected close date for cash flow forecasting. Consider: one large commission shouldn't immediately increase lifestyle—reserve first.

If handling client funds (deposits, purchase prices), strict separation required. Treuhandkonto is separate bank account, not commingled with operating funds. Track each client's funds individually. Interest belongs to client (or documented otherwise). Documentation for each transaction. Many agents avoid escrow by directing funds to notary directly. If escrow required, absolute compliance with trust requirements.