Tenant Group Argues Insufficient Extension of Rent Freeze - Insufficient rent received still maintains lower rental costs minimized
Extending Rental Price Cap Insufficient for Berlin Tenants' Association
The Berlin Tenants' Association has welcomed the proposed extension of the rental price cap but believes it falls short of providing adequate protection for renters. Wibke Werner, the managing director of the association, expressed her concerns to the German Press Agency, stating that the continuation of the cap at the federal level is vital for limiting rent increases in new leases, particularly in Berlin, where the cap is most applied.
The proposed extension of the legal rental price cap would see the rent for newly rented apartments not exceeding the local comparative rent by more than ten percent. According to the federal cabinet's draft, the cap would remain in effect until December 31, 2029. However, if it had not been extended at the federal level, it would have expired in Berlin by the end of 2025, leaving tenants unprotected when signing new leases.
The Berlin Tenants' Association has also criticized exceptions to the rental price cap, particularly for new buildings completed after 2014, which are currently exempt from regulation. Werner emphasized the need to revise this exception, arguing that it is no longer justified for an eleven-year-old building to be classified as new. The association also laments the exemption of flats undergoing comprehensive modernization, stating that there is widespread abuse when landlords claim modernization but do not undertake significant improvements.
In addition, the tenants' association calls for changes with regard to short-term rentals, which are often exempt from the cap. These rent-controlled flats are frequently used for furnished apartments, and Werner suggests that the furniture surcharge is used to inflate the rent. Furthermore, the association advocates for a rent cap and an opt-out clause that would empower federal states to implement such legislation, as the existing rental price cap has not yet achieved its intended purpose.
While the extension of the rental price cap is a positive step, the Berlin Tenants' Association believes more robust housing regulations are needed to effectively address rising rents. The association also advocates for the socialization of housing companies and the harmonization of tenancy law. In a 2021 referendum, a majority supported the socialization of large real estate companies with over 3,000 flats, but the implementation and readiness of housing companies for socialization remain issues of concern.
[1] Source: federal cabinet draft[2] Source: German Press Agency[3] Source: Berliner Mieterverein concerns and recommendations
- The Berlin Tenants' Association advocates for a revision in the rental price cap policy to include vocational training programs for landlords, ensuring they understand the importance of adhering to regulations in the real-estate industry, particularly when investing in new builds or modernizing existing properties.
- In light of the increasing influence of finance on the real-estate business, the Berlin Tenants' Association proposes implementing stricter regulations on short-term rentals, aiming to prevent the misuse of furniture surcharges and ensure compliance with the rental price cap.
- As the Berlin Tenants' Association considers the extension of the rental price cap as a necessary step, they also call for the introduction of a comprehensive community policy aimed at easing the financial burden for tenants, particularly with the socialization of housing companies and the harmonization of tenancy law.
