Engel & Völkers
  • 3 min read

Changing property market: opportunities through change of use

Legal framework and possibilities for conversion

In the field of housing, too, there has been a move away from traditional forms of housing towards needs-oriented housing concepts can be observed. Thus, the traditional distinction between regular residential use (flats, student residences, student flats) on the one hand and "temporary living" (hotel, boarding house) on the other hand is increasingly being dissolved.

Especially due to the increased local Flexibility in the world of work, forms of housing such as boarding houses or "co-living" are on the rise and often raise difficulties of demarcation: Where does living end and where does commercial room rental (to be classified as non-residential use) begin?

Permanence as a criterion

The legal concept of housing is characterised by the focus of lifestyle, which is characterised by a certain permanence of use as well as an autonomy. The limit of Permanence is often drawn in administrative practice from an (intended) period of use of three months.

Independence of lifestyle is no longer given if the respective units of use merely convey quality of stay, but otherwise the activities typical of residential use (cooking, washing, cleaning, etc.) are all or at least largely taken over by third-party service providers.

If the permanence and independence as prerequisites for residential use are not fulfilled, there is no residential use in the legal sense, but a commercial use and thus, if applicable, a change of use subject to approval.

How often does the target group change?

If, for example, a residential building is to be used in the future in such a way that only rooms with sanitary facilities and no cooking facilities are offered to a constantly changing group of addressees, the use of the building must be approved to a constantly changing group of addressees without a minimum length of stay, but with a comprehensive range of services (such as cleaning, catering, washing), then this is probably a change of use (subject to approval).

Especially from the point of view of misappropriation of living space, this can prove to be critical. If, on the other hand, a minimum rental period of three months, own cooking facilities and a merely optional service package were provided for, there is much to be said for not assuming such a change of use.

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