Tenant Group Insists on More Rent Regulation Beyond Extension of Rent Control Measures - Insufficient Rental Income Prevents Rental Rates from Decreasing
The prolongation of the rental price cap, referred to as the rental price brake, has been welcomed by the Berlin Tenant Association, yet they assert that it is not a conclusive solution. Wibke Werner, the association's managing director, emphasized to the German Press Agency that it is crucial for the measure to persist at the federal level, as Berlin experiences a significant concentration of applications for the rental price brake.
The federal cabinet has proposed a continuation of the legislation on the rental price brake until December 31, 2029. The draft allows the rent to be at most ten percent higher than the local average rent for newly leased flats.
According to Werner, if the extension hadn't been proposed at the federal level, the rental price brake would have expired in Berlin by the end of 2025, leaving tenants in a precarious position when signing new lease agreements.
The association has voiced criticisms over exceptions to the rental price brake, particularly concerning new buildings. Those built after 2014 are exempt from the cap. Werner advocates a revision of this rule, arguing that buildings constructed over a decade earlier should no longer be considered "new builds." This adjustment would offer more extensive protection to tenants in these older properties.
Another concern for the association is the exploitation of loopholes in the rental market. Abuses arise when landlords claim comprehensive modernization, but the work done may not warrant such a categorization. Additionally, the association calls for a change regarding flats rented for short periods, arguing that this practice is fueling the housing crisis and driving up rents.
The Berlin Tenant Association also advocates for stricter regulation of the housing market, including the nationalization of housing companies and the establishment of a rent cap, subject to certain conditions. They have proposed an opt-out clause that could permit states to implement rent caps, as the Federal Constitutional Court blocked a similar measure in Berlin last year on the basis of state competency.
The Berlin Tenant Association has appealed for a nationwide continuation of the rental price cap, proposing that the federal cabinet's proposed extension until 2029 be implemented at the national level. In addition, they have advocated for stricter regulation of the housing market, calling for a finance-backed nationwide rent cap, contingent on certain conditions and an opt-out clause for states, as a means to address lifestyle concerns and prevent home-and-garden related finance issues. Furthermore, they seek vocational training for real estate professionals to prevent business abuses and ensure fair practices within the sector.
