Rent limit in Berlin: 300.000 renters will soon be paying less!

 

The infamous rent limit (Mietendeckel) bill was passed by the Berlin Senate this week, effectively freezing rents for the next five years. The legislation now only has to be passed by the House of Representatives in order to take effect. Here's a rundown of what'll be different. doha property

The Berlin Senate has approved a rent ceiling.

In comparison to other German cities, Berlin does not have the most expensive rental market. But what concerns me the most about the housing market in Germany's capital city is how rapidly prices have risen in recent years.

As a result, Berlin's "Red-Red-Green Senate" (named after the three coalition partners' colors: SPD, Left, and Alliance 90 / The Greens) has decided to freeze rents on 1.5 million apartments for the next five years. In addition, basic rent will be set at 9,80 euros per square metre (excluding utilities).

Tenants signing new rental contracts are not allowed to be charged more than the previous tenant was charged, and if their rent exceeds a certain threshold, they can also petition to have it reduced. This one-of-a-kind measure has the potential to help up to 300.000 tenants. Landlords will be able to increase rents in line with inflation starting in 2022, which is expected to be about 1.3 percent per year.

There's everything you need to hear about Berlin's rent freeze right here.

But, in fact, what does all of this mean? Here's a rundown of the main points of the new law, as well as how the rent limit can affect you.

When is the rent limit going to be implemented?

The Berlin rent limit is most likely to begin at the end of February 2020, two months later than originally expected. The legislation will then be enforced retroactively beginning June 18, 2019, potentially nullifying any recent rent increases. Other provisions of the law will be implemented later, such as rent reductions beginning in late 2020 and rent inflation of 1.3 percent beginning in 2022.

Which tenants will reap the benefits of the rent cap?

A total of 1.439.969 apartments in Berlin are affected by the rent limit rule. It does not refer to the 98.260 social housing units in the area, nor to the 65.500 apartments constructed since 2014.

Is it possible for me to reduce my rent?

Berliners who pay “indecently high” rentals will be able to file a lawsuit to reduce their rent. The Senate has devised a "rent table" that establishes ceilings based on 2012 rental rates. Tenants have the right to request a reduction if the caps have been surpassed by more than 20%.

Allowances and deductions for factors such as the apartment's location (well-located apartments are entitled to command higher rents) and if it has recently been renovated are often taken into consideration when determining if a rent is "indecently large."

What are your strategies for lowering your rent?

You will file a request for a rent reduction with the Senate Department of Urban Development. To handle these demands, about 200 new workers will be recruited. At the earliest, a rent reduction can be extended for nine months after the rent limit goes into effect.

What are the advantages for those looking for a new home?

The rent limit helps not only existing residents, but also people looking for apartments in Berlin. According to the statute, the most a new tenant can pay is the sum paid by the previous tenant on June 18, 2019. However, it's likely that new tenants will be paid the full sum allowed by the Senate's rent table.

What happens if a landlord refuses to follow the rules?

The districts are in charge of keeping an eye on the rent cap. In the event of a violation, fines of up to 500.000 euros can be imposed.

Do you have any questions about where to rent in Berlin?

If you have any questions about how the rent cap will impact you or if you need more information, you can contact your local tenants' association (Mieterverein).