Income Properties in Oberfranken – What They Are and How to Find the Right Ones
Income properties (Renditeimmobilien) are properties acquired primarily as an investment – with the aim of achieving a positive return through rental income and long-term appreciation. In Oberfranken they offer gross yields of 4.5–7.5%, which are hardly achievable any more in southern Bavaria.
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Currently for sale: See 2 investment properties from €100,000
Key points at a glance
- Income properties are bought primarily for ongoing rental income and long-term growth in value.
- In Oberfranken, gross yields of 4 to 8% are possible – considerably more than in Bavaria's major cities.
- What matters is the net yield after management costs, maintenance and vacancy.
- Location, condition and tenant structure determine the risk more than the purchase price does.
- Many income properties are placed off-market before they are offered publicly.
Which property types are suitable?
Flats: Low entry price, low concentration risk, high liquidity. → Flats
Apartment buildings: Higher yields, full control, diversification across several rental units. → Apartment buildings
Commercial property: Longer lease terms, higher yields, but also a higher individual risk. → Commercial property
Care properties: Driven by demographics, long-term leases, little management effort. → Care properties
Selection criteria
Location: Population trends, economic strength, infrastructure, vacancy rate. → Demographic trends
Condition of the property: Calculate the renovation needs. Unrenovated properties offer higher gross yields, but require investment. → Properties in need of renovation
Rental income: Compare current rents with the local reference rent. Assess the potential for rent increases. → Rent index
Yield calculation: Always calculate net (after management costs, maintenance and administration). → Investment property in detail
Income properties compared
| Property type | Entry from (approx.) | Gross yield in Oberfranken | Effort | Risk |
|---|---|---|---|---|
| Flat | €80,000 | 4.0–6.0% | low (owners' association management) | Building community, special levies |
| Two-family house | €180,000 | 4.5–6.0% | medium | Vacancy of one unit weighs heavily |
| Apartment building | €200,000 | 5.0–8.0% | medium to high | Maintenance, tenant structure |
| Residential and commercial building | €300,000 | 5.5–8.0% | high | Vacancy in the shop unit |
| Care apartment | €100,000 | 3.5–4.5% | very low | Dependence on the operator |
| Commercial, logistics | €500,000 | 6.0–9.0% | medium | Single tenants, re-letting |
Guide values from our brokerage practice; each case depends on location, condition and tenancy agreements.
Worked example: flat in Kulmbach
A 68 m² flat, built in 1994, let for €445 net cold rent, purchase price €98,000.
| Indicator | Value |
|---|---|
| Annual net cold rent | €5,340 |
| Gross rental yield | 5.4% |
| Non-recoverable service charge and maintenance (approx.) | −€1,150 |
| Rent loss risk (2%) | −€107 |
| Net income | €4,083 |
| Total investment including incidental costs (approx. 9%) | €106,800 |
| Net rental yield | 3.8% |
The net yield is realistic for a solid flat in a medium-sized town. With financing, repayment and tax effects, an individual picture emerges. The full calculation is explained in the guide Calculating rental yield, and tax effects in Depreciation (AfA) on property.
How we find suitable income properties for you
- Define the search profile: budget, equity, target yield, preferred locations and property types.
- Pre-selection: we check tenant lists, rent levels, maintenance backlog and location before we propose a property to you.
- Profitability calculation: gross and net yield, cash flow with financing, a scenario with vacancy.
- Viewing and checks: together on site, with a surveyor if desired.
- Purchase and handover: negotiation, notary, handover of tenancy agreements and deposits.
Register your search profile via Investor matching.
FrankenImmo | Phone: 0151 58363197 | Investor matching
Frequently asked questions
What yield is realistic for income properties in Oberfranken?
Usually between 4 and 8% gross, and between 3 and 6% net after all costs. Higher values are possible, but almost always come with higher risks – such as older building fabric or weaker locations.
Is a flat or an apartment building the better investment?
A flat is easier to manage and easier to resell. An apartment building usually brings more yield and more control, but requires more capital and management effort. Many investors start with flats and later move on to buildings.
How high should the maintenance reserve be?
As a guide, €10 to €15 per square metre per year for older buildings. For flats, an amount for the bathroom, floors and kitchen is added to the owners' association reserve.
Can I manage an income property from abroad?
Yes, with a local letting management company. We put you in touch with management companies from the region. More under International buyers.
Sources & further reading
- statistik.bayern.de – Bavarian State Office for Statistics: population trends by municipality
- gesetze-im-internet.de – Operating Costs Ordinance: costs that can be passed on to tenants
Get off-market opportunities first.
Register your search profile – we will contact you as soon as a suitable property comes to market discreetly.
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