Commitment to personal use: Is partial renting allowed?

Hello dear house-building community,

I would like to buy a plot of land 'for locals' at a slightly reduced price from my municipality this quarter. I have not yet received the draft contract for the notary appointment. From the conversation with the mayor, I only know key points, namely: 1) building obligation within a generous 5 years, otherwise repurchase, and 2) obligation for owner occupancy for 5 years after completion of the building (penalty unknown).

I am now considering building the house as quickly as possible and possibly bringing in tenants, e.g. on the first floor, so that I can better finance my loan payments. Does the municipality’s contractual freedom also extend so far as to prescribe that I must use the house alone? Ideally, I would only like to use it as a second residence for the first 1-2 years, because I currently still have an apartment in the city including a workplace there. Commuting from the location of the new house would also be okay. Second residence & renting out would then possibly be a bit too much.

What are common contract arrangements for owner occupancy, and how realistic is it that I can move into the house and at the same time bring in tenants?

Best regards, Mark

This would be regulated in the development plan, whether 2 residential units may be built at all (main house with [Einliegerwohnung]).

I am now considering building the house as quickly as possible and possibly getting tenants, for example in the first floor, so that I can better finance my loan repayments.

This is often a naive calculation – you also have to build and pay for the first floor. So much higher construction costs as well as financing compared to a single-family house. Since the equity does not change, only the construction costs increase, the loan-to-value ratio also changes. As a result, you get worse terms from the bank. Oh yes, rental income also has to be taxed, which makes the return even worse.

I have not yet received the contract draft for the notary appointment.

Everything you are allowed to do will probably be stated there. Otherwise, the comment from should also be noted.

We like people like that. Buying land at a discount but not wanting to follow the rules. Second home, renting out, in the end even Airbnb or something like that, if that were my neighbor, I would be at the town hall in no time without batting an eye and not anonymously either, insisting on the B plan, in which such things are surely prohibited. If not, then the rules would just be empty words. It changes the character of a residential area for the worse when there are weekend homes, guest rentals, etc. Permanent renting is certainly something different, since someone actually lives there. Karsten