A residence meant to "serve the people of Cologne" is being used by a multinational company for vacation rentals. But cities with small budgets can face a monumental challenge fighting professional Airbnb landlords.
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"I'm absolutely incensed," said Andreas Hupke, district mayor for the city of Cologne's Deutz district on Thursday.
Hupke spoke to DW one day after revelations that multiple rooms in a residence in the western German city created by a non-profit and meant to cater to students, the elderly and the disabled were in fact being rented out to tourists via the home-sharing portal Airbnb.
"Those rooms are supposed to be for students for the nearby technical college," said Hupke, "what kind of ice-cold business is behind this?"
According to public broadcaster WDR, who broke the story, that business is a shell company operating out of Luxembourg, financed by London-based investment bankers.
Rooms for students, disabled, rented out to tourists
The Castell residence sits in a quiet cul-de-sac in Deutz, a quarter with a high percentage of immigrants, which is in the early throes of gentrification. According to its website, the building managers claim that "out of respect for the memory of the Gebrüder Coblenz foundation [that built the residence], Castell-Deutz should serve the people and students of Cologne."
This was news to a Frenchwoman leaving the building on Thursday, who said she had rented a basic room for her family for about €100 ($114) a night using Airbnb.
This is just the latest scandal for the home-rental service, and far from the first in Germany. In Berlin, the substantial effects of Airbnb on the housing market led to the creation of stringent regulations. People can only rent out the place where they actually live. Renting out a "second home" is only possible for a maximum of 90 days a year, and the city employs a number of "investigators" to root out illegal rentals.
"In one way, I think Airbnb is better than other sectors of the gig economy," said Rachel, a teacher in Cologne, "if a student or a low-income worker wants to earn an extra bit of money by renting out their apartment when they're out of town, then someone who needs to travel cheaply can benefit from that. But when corporations get involved, it makes the rents go up in cities and that shouldn't be allowed."
Mayor: Federal government should get involved
But reining in Airbnb is easier said that done, said Andreas Hupke. He told DW that his small office of just a handful of people was practically helpless against such a large corporation.
"Berlin and Hamburg are city-states, and Munich is a regional capital, so they have more federal financial resources made available to them. It's incredible to me that Cologne is the fourth-largest city in Germany, and here we are completely toothless to fight Airbnb because the laws are decided in Dusseldorf," he explained, visibly upset.
Dusseldorf is smaller, but it is the capital of Germany's North Rhine-Westphalia state, where Cologne also lies.
Germany from A to Z: Cologne
We are taking a tour through Germany and every week we will introduce you to a new town, guided by the alphabet. This time K takes us to Köln or Cologne, a city of art, culture and carnival.
Image: Imago/J. Tack
Cologne Cathedral - literally a huge landmark
It is one of the most popular travel destinations in Germany: before the coronavirus pandemic some 20,000 people visited it — every day. Cologne Cathedral is over 700 years old, and it took just as many more years to build it in the first place. This Gothic architecture masterpiece has been a UNESCO World Heritage Site since 1996.
Image: picture-alliance/dpa/M. Kusch
Old town center — a modern historical place
Cologne's old town center was almost completely destroyed during World War II. Many historical house fronts were reconstructed on functional 1960s buildings, like the Fischmarkt pictured here. In the alleyways of the old town center you'll find a huge choice of cosy taverns, restaurants and brewery houses.
Image: Jens Korte/KölnTourismus GmbH
Home of traditional Kölsch beer
People here enjoy their glass of Kölsch beer. This can only be brewed in Cologne and its environs. It is served in a "Kölschstange" — a tall, narrow 0.2 liter glass. It is best accompanied by hearty local specialties like "Himmel und Äad" - the local dialect for heaven and earth — a dish that combines mashed potato, apple sauce and blood sausage.
Image: Privatbrauerei Gaffel
Museums — from ancient to present times
Art and culture lovers have their work cut out for them in Cologne as there are a myriad of galleries and exhibitions to choose from. The Museum Ludwig for instance presents contemporary art as well as pop art and expressionistic works. In Cologne everyone will find "their" museum as they cover everything from Roman times to technology and chocolate.
Image: picture-alliance/dpa/O. Berg
Churches — a testimony to former glory
Cologne in the Middle Ages was the German speaking world's biggest city and an important ecclesiastical center. To this day many sacral buildings bear witness to Cologne's former religious significance including 12 Romanesque churches. St. Maria im Kapitol is the largest of them and is located on the site of an ancient Roman Capitoline temple. The present church was built in the 11th century.
Image: Jens Korte/KölnTourismus GmbH
Rheinpark — a big playground
Opposite the Cathedral, on the shores of the Rhine you find the 40 hectare Rheinpark. It was created in 1912 and in 2007 it was named Germany's best park. Extensive lawns in the summer serve as playgrounds for football matches and BBQ evenings. The Rhine cable cars take you from here across the river to Cologne Zoo.
Image: picture-alliance/dpa/O. Berg
Carnival — Cologne's fifth season
For one week every year, the city is an exceptional place to be — Cologne's Carnival is one of the biggest and best-known street carnivals in the world. Important words to know are "Alaaf" - a carnival greeting, which can be shouted out at all times and "Kamelle" - the sweet treats thrown during the street parades. Cologne wants to celebrate carnival in 2021 despite the coronavirus epidemic.
Image: picture-alliance/dpa/O. Berg
Trade fairs — from Gamescom to Art Cologne
Cologne is known globally as a trade fair city — at Gamescom, the annual fair for computer and video games, companies from around the world present new hard- and software. Artworks for all budgets are sold and exhibited at Art Cologne — the world's oldest art fair. Photokina, one of the world's most important photography trade fairs, takes place every two years.
Image: Koelnmesse GmbH
Open-minded and welcoming
Metropolitan and tolerant — that's what Cologne stands for — so no surprise that the city on the Rhine is a gay stronghold. Once a year ColognePride takes place, an event to support the rights of gay and transgender people — the biggest of its kind in Europe. The party highlight is the Christopher Street Day parade — which this year has been postponed until autumn due to the coronavirus crisis.
Image: picture alliance/R. Goldmann
Rhine — trade route and recreation
One of Cologne's many bonuses' is its river location - and what a wonderful waterway it is! The Rhine is Germany's longest river. Romans knew how convenient the location was when they founded a settlement here in 19 BC. Take an excursion on a river boat to fully appreciate the cityscape of the old town center with the cathedral — or why not grab a paddle and row out onto the river yourself?
Image: Dieter Jacobi/KölnTourismus GmbH
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"If the states and the federal government want Germans to have somewhere to live, we need laws, we need the personnel, we need wide-ranging financial investigations," he added, saying ideally the matter would be regulated at the EU level, where the company is currently being investigated for potentially breaking European laws.
Hupke made it clear, however, that the matter will be taken to Cologne's city council.
Facing strict regulations and even outright bans in cities like Berlin, Barcelona and New York, Airbnb has consistently denied that it prices the poor and the elderly out of their own neighborhoods while wealthy landlords (who make up the vast majority of Airbnb "hosts") rake in the barely regulated income.
The company management site listed on Castell-Deutz's website, which gives a Hamburg address, did not respond to DW's request for comment.