June 11, 2026
Renting, Cooperative, or Owning: Comparing the Three Ways to Live in Germany
Anyone looking for a place to live in Germany has, at heart, three options: rent in the classic sense, join a housing cooperative (Genossenschaft), or buy. All three differ significantly in law and in cost.
Classic renting
With a standard rental apartment, you sign a lease (Mietvertrag) under the German Civil Code (BGB). You pay a deposit (Kaution) of up to three months' net cold rent, refunded when you move out, minus any legitimate deductions. You build no equity this way, but you get maximum flexibility and no obligation to invest.
The cooperative apartment
With a Genossenschaftswohnung, you first become a member of the cooperative, as defined in Section 1 of the German Cooperatives Act (Genossenschaftsgesetz, GenG): a company with an open membership that jointly promotes its members' business or livelihood. Instead of a deposit, you buy shares (Geschäftsanteile), typically priced between 500 and 3,000 euros per share according to Verivox. That money stays your property as a capital stake and is paid back when you leave. As a member, you also get a vote in the cooperative — but no property of your own to sell or pass on. For more on what that voting right actually looks like in practice, see our guide to how cooperative self-governance works.
Owning your home
When you buy an apartment or house, you acquire the property itself, usually financed through a mortgage. On top of the purchase price, you pay real estate transfer tax (Grunderwerbsteuer), which ranges from 3.5 to 6.5 percent of the price depending on the state. In exchange, the property is fully yours — you can resell it, pass it on, or renovate it — but you also carry the full risk of any loss in value and all maintenance costs yourself.
The key differences at a glance
**Capital required**: renting — none beyond the deposit; cooperative — one share, typically 500 to 3,000 euros; owning — the full purchase price plus closing costs
**Refund when you leave**: deposit — paid back in full; cooperative share — usually within six months per the statutes; owning — only through resale
**Say in decisions**: renting — none; cooperative — one vote under Section 43 GenG; owning — full decision-making freedom
**Flexibility to move out**: renting is most flexible, a cooperative is bound by the notice periods in its statutes, owning is least flexible because of the sale process
Which form fits whom?
Renting suits short-term planning or a limited budget. A cooperative suits people who want stable rents and a voice in decisions, without carrying the full risk and capital of buying property. Owning suits long-term planning backed by enough equity and a desire for full control over the property. If you're weighing a cooperative apartment specifically, our guide on whether you actually qualify for one and our step-by-step application guide walk through the details.
Frequently Asked Questions
Is a cooperative apartment renting or owning?
Legally, it's neither classic renting nor ownership. You use the apartment as a member of the cooperative, into which you've invested via a share that's refunded when you leave.
What does it cost to get started with each housing form?
For renting, usually a deposit of up to three months' net cold rent. For a cooperative, one or more shares, typically 500 to 3,000 euros each. For owning, the full purchase price plus transfer tax and other closing costs.
Can I later buy the apartment I'm renting from a cooperative?
No, generally not. You remain a member with a right of use; the property itself belongs to the cooperative as a whole, not to individual members.
What happens to my share if I leave the cooperative?
Under Section 73 GenG, your capital stake is usually paid out within six months of your membership ending, based on the cooperative's most recent balance sheet.
Do I get a say in decisions as a member of a cooperative?
Yes. Under Section 43 GenG, every member generally gets one vote at the general assembly, regardless of how many shares they hold, unless the statutes provide otherwise.
