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The rent cap has been extended again – until 2029. It was never considered a major housing policy achievement. However, it can bring relief to financially burdened tenants. What you can do if your rent is too high.
What is the Rent control and what is its purpose?
The so-called rent brake is intended to prevent rents from rising uncontrollably in regions with a tight housing market in Germany. The corresponding law was passed by the then grand coalition of CDU/CSU and SPD in 2015 – so the rent control will soon be ten years old.
In 2019/2020 it was extended for the first time and also tightened; Now the traffic light coalition has extended it again until 2029. However, the rent cap does not apply across the board in Germany: its implementation is a matter for the states. And it is also highly controversial.
What does that say? Rent cap?
When re-letting or re-letting an existing apartment in certain regions, the new rent may not be more than ten percent higher than the local comparative rent. However, there are many exceptions that make the whole thing a bit complicated.
What exceptions are these?
Udo Casper, managing director of the German Tenants’ Association Baden-Württemberg eV, explains: “The rent cap does not apply to apartments that were used and rented for the first time after October 2014, after extensive modernization or if the previous tenant has already paid a higher rent.” In the latter case, however, the new rent may not exceed that of the previous tenant.
The landlord is also obliged to disclose the most recently set rental price – or must justify it if he charges more than the local comparative rent plus ten percent. He must do this without being asked before concluding the rental agreement. If he fails to do this, tenants can claim this even if they have already moved in. “The subtleties lie in the details; you should carefully check whether the exceptions apply,” says Casper.
What can I do if I suspect excessive rent?
First, find out whether the rent control actually applies where you live. If that is the case, you need to research the local comparative rent – this usually goes beyond the qualified rent index. Once you have found out the comparative rent, add ten percent and calculate the difference to your current basic rent. This is the amount you are probably paying too much each month.
How do I proceed now?
If your landlord is accessible, you can first talk to him. Maybe you’ll be lucky and the matter will be resolved quickly. But that’s unlikely, after all it’s about money.
If the landlord does not respond or refuses to adjust the rent, issue a written complaint. There are templates for this on the Internet, for example from tenants’ associations. The landlord must then explain in writing why he is demanding a higher rent. Then you have to see whether this higher rent is justified – or not.
I’m unsure whether my rent is too high – who can help me?
The local tenant associations, legal and consumer advice, a lawyer.
I’m sure my rent is too high – what are my chances of success?
The specified upper limits are mandatory and landlords must adhere to them. Since the rent cap was tightened in 2020, landlords are also obliged to retroactively reimburse excess rent. Of course you have to demand that. This is possible up to 30 months after the start of the rental agreement, for rental agreements that were concluded after April 1, 2020. In the case of older contracts, the complaint only has effect for the future.
My landlord refuses to accept the complaint. What now?
Now is the time to get advice and support, see above.
Tenants’ associations observe that only a few people Rent control to use. Why is that?
For Udo Caspers from the Baden-Württemberg Tenants’ Association, there are two key points: the complicated rules – and the psychology: “You have to be familiar with the rent control. In addition, many tenants are afraid for their apartment. Given the enormous housing shortage, who finally has the chance If you have an apartment, you probably have concerns about demanding a rent reduction. So it’s important to find out more and have the courage to take action against a rent that’s too high.”
What should you consider before taking action?
Weigh it up: Is it worth the argument when it comes to a difference of 0.50 euros or one euro per square meter? If you pay 15, 16, 17 euros or even more rent per square meter, even though only ten, eleven or twelve euros are allowed, things look different. You should be aware that a rental agreement is a business relationship – and is usually not intended to last forever.
Why does it matter to others how much rent I pay?
Udo Caspers again: “The rent cap only affects new contracts. When apartments are rented out, the rent often rises sharply. These high re-letting rents are then also included in the rent index calculations. And that then leads to existing rents also increasing, So housing is becoming more and more expensive for many people.”
And why is that? Rent control so controversial?
In short: for some it doesn’t go far enough, for others it goes too far. Tenants’ associations criticize, among other things, that tenants have to take action themselves, that there are too many loopholes and that landlords are not threatened with sanctions if they do not adhere to the upper limits.
The owners’ association Haus & Grund, on the other hand, would like to see the rent cap abolished and recently announced a lawsuit against the extension. The instrument is not suitable for ensuring affordable rents for all income groups in metropolitan areas and has exacerbated the housing shortage.
Federal Construction Minister Klara Geywitz said this rbb She added that she assumed that the responsible Ministry of Justice had “examined the extension sufficiently thoroughly”.