Need your assessment for the renovation of a rental property

However, when considering the economics, you have to calculate very precisely whether it is worthwhile with the subsidies.

In the meantime, we were given an energy consultation by the Mayor of the city of Essen. Many thanks to the city of Essen! Everything was arranged through the consumer advice center. The expert was friendly and was able to provide some good suggestions. However, he was also somewhat surprised that our plans were already so concrete, so he could not apply his usual general approach. We are tackling the project - despite the predominantly critical opinion here in the forum regarding the numbers. We heat with Hargassner / pellet or equivalent providers CO2 neutral + Thermie, probably achieving with an investment sum of just over 200,000 (we calculated very generously) + 25,000 non-eligible costs a KFW Efficiency House 70 with 35% subsidy + about 50% for construction supervision. That amounts to a subsidy of about 74,000 euros. This would also mean that the usable space in the attic is well expanded through windows and a dormer, and certainly a small highlight for the new tenants, as they have an additional 42 m² retreat area directly accessible from the apartment hallway. We are disposing of 2 out of three chimneys and using an unused flue, which leads directly in the boiler room to the wall of the pellet storage. The heating system will be connected online with the manufacturer, giving us direct access, for example, to the heat meter and data. The tenants can also control the heating themselves via an app in one area. This way, faults can be quickly detected and fixed. Despite good storage capacity, we will probably use a fabric silo, which seems cost-neutral compared to the built storage. It is also cleaner, protected against vermin, and the pellets are safely extracted, as the old pellets always slide down and are removed from below, while new pellets slowly move down from the top with consumption. Now the contract is being prepared to start with the calculations. There is some flexibility in the insulation as long as one stays within the values of an Efficiency House 70.

Meanwhile, our potential energy consultant has miscalculated. He hoped to get his price list signed without a contract, but unfortunately, I was able to present a contract recommended by BAFA. He then rejected it and was out.

It is alarming that a certified engineer energy consultant can actually believe that his not even 2-page cost breakdown could replace a complete contractual framework for regulating cooperation on energy renovation. Any simple cleaning has more contractual provisions than his list, which closes with an amount of almost 5,000 euros – for now! His billing allows any extension beyond 10,000 euros and he never tires of saying that half of it is covered by BAFA! So don’t be dazzled by these BAFA KFW energy consultants, they are independent entrepreneurs who probably think they can bill freely and always end up at the maximum of BAFA funding anyway. Without a contract – which mentions the normal provisions – nothing should proceed!

My second energy consultant does it better – he already presented a contract for the BAFA calculation the next day – everything as it should be. And now he was able to announce that the values clearly point to an Efficiency House 55 – so a plus of over 10,000 euros in subsidies – okay, we’ll see.

As the first construction measure, 2 new reinforced apartment entrance doors and the attic and the insulation in the attic were removed, which brings 11 cm height...

Thanks to Corona, we have somewhat neglected the project. The tax office has meanwhile approved the possible write-offs. Colorful letters arrive weekly in the mailbox. "Hanni und Nanni suchen ein neues Zuhause" - "Real estate agent is personally looking for a new home and has fallen in love with the property", unwanted calls and house visits. Strangers stand in the back garden and when you ask them what they are doing here - the women are cheeky and say it’s none of my business - I would have simply gone onto the property myself... huh??? Meanwhile, I had to ask the land registry office not to disclose the contact details for the house anymore. From 01.07.21 there will be better funding conditions, hopefully compensating for the increased construction costs...

Thanks to Corona, we have let the project slip a bit. The tax office has meanwhile approved the possible write-offs. Colorful letters arrive weekly in the mailbox. "Hanni and Nanni are looking for a new home" - "Agent is looking for a new home for himself and has fallen in love with the property," unwanted calls and house visits. Strangers are standing in the back garden and when you ask them what they are doing here - the women are cheeky and say it’s none of my business - I would have simply gone onto the property myself... huh??? Meanwhile, I had to ask the land registry office not to disclose the contact details of the house anymore. As of 01.07.21 there are better funding conditions; they hope to compensate the increased construction costs...

So what exactly is the plan now?

What you describe with the uninvited guests... I spontaneously thought of other threads here where people try to find out the owners of vacant houses... another example of how quickly people get annoyed and boundaries are crossed.

BAFA report from the energy consultant says KFW 55 is possible. Full program with roof insulation, facade insulation, window replacement + roller shutters, pellet heating + thermia with heating support for hot water, cellar ceiling insulation, garden dismantling, terrace, disposal of old facade, Pellet is a known risk but tenants cover the maintenance contract and also save enormous energy costs – because I do more than required with the thermia.

Balcony railing above the bedroom must be demolished and the balcony floor insulated. Then a railing will be installed.

My costs of 280,000 euros will then be subsidized from 01.07.2021 with probably 40% + 5% sustainability factor (probably new) for pellet heating + thermia, resulting in a KFW grant of 126,000 euros. The amount of 52,000 euros used from life insurance will probably be almost recovered through depreciation over 5 years – so it flows back. The amount of 102,000 euros can be earned back through rental over 6 years with 2 residential units without even significantly increasing the rent. Small additional subsidies from the state are not included. From 01.07.21 the subsidy amount will increase from 120,000 euros per residential unit to 150,000 euros. The 20,000 euros is my buffer. Just roughly: the house is located centrally in a quiet residential street directly next to a small forest. Excellent location Grugapark, university all reachable by bike. City highway by car 5 minutes. Value today at least 350-400 thousand euros. Value increase due to renovation cautiously 150-200 thousand euros. So I can say that my investment amount immediately increases the sale value by the full amount. So that is now the plan...

Are different projects being mixed here in the flea market?