Beginning June 1, 2025, the northern German city of Flensburg will enforce strict new regulations targeting holiday rentals, a move driven by recent housing studies and political pressure to address the shortage of affordable long-term accommodation such as Airbnb and Vrbo. The move, approved by local authorities, aims to curb the growing impact of short-term rentals on the city’s housing market and ensure more housing is available for long-term residents.
New Rules Aim to Protect Residential Housing
Under the new policy, landlords who rent out residential properties as short-term holiday accommodations will be required to register their listings with the city. Each property will need a permit, and unauthorized rentals could face fines of up to €25,000. These measures echo policies already in place in major German cities such as Berlin and Munich.
In addition to registration, landlords must comply with usage limits—such as a cap on the number of days per year a property can be rented out for tourist purposes. Early drafts suggest a maximum of 90 days per year, although final details will be confirmed in June.
What It Means for Property Owners
Owners who fail to comply risk significant penalties. The city will monitor rental listings and can demand documentation to prove compliance. Platforms like Airbnb may also be required to share rental data with municipal authorities.
This regulatory crackdown comes amid mounting concerns about housing availability. In some parts of Flensburg, up to 5% of housing units are believed to be used primarily for tourism—a figure the city council sees as unsustainable.
Impact on Market Prices
While the new rules are not directly targeting pricing, they are expected to affect the market indirectly. Rental yields for short-term holiday properties in Flensburg have averaged between €70 to €120 per night, significantly higher than long-term rental yields, which typically range from €20 to €25 per night based on monthly rental averages for central apartments. With the new limits in place, investors may reconsider strategies, leading to a gradual decline in purchase demand for small city-center flats.
Meanwhile, long-term rental prices in Flensburg continue to climb. As of Q1 2025, the average monthly rent for a one-bedroom apartment in the city center stands at around €750, up 6% from the previous year. In more residential districts, prices are slightly lower, averaging €620 per month.
A Broader Trend in Europe
Flensburg’s move mirrors similar initiatives across Europe. Cities such as Amsterdam, Barcelona, and Paris have also tightened restrictions on short-term holiday rentals in an effort to balance tourism with local housing needs.
By proactively regulating the market, Flensburg aims to preserve housing affordability and protect its residential character while still allowing for sustainable tourism.
