The Bundesrat (Federal Council) has voted to extend rent controls. Federal Justice Minister Stefanie Hubig, however, believes that this is not enough. She has announced a system of fines for landlords who breach the ceiling, German broadcaster ARD reports.
“After the summer break, an expert committee will start work to address other pressing issues of rental law,“ she said. The committee must then, among other things, make proposals for a system of fines to be applied to breaches of rent controls.
Rent controls apply in areas designated by the respective state government as having a restricted housing market. When renting an apartment for the first time, the rent cannot exceed the local comparative rent by more than 10% at the beginning of the rental period.
This is the average rent for comparable apartments, which can be found in the rental indices. However, there are exceptions for new buildings rented for the first time after 2014 and for apartments that have been substantially modernized.
Currently, if a landlord violates rent control, the tenant can recover the excessive rent. “The landlord has nothing more to fear“, criticizes Hubig. “In my opinion, this is unsatisfactory.“
The proposals for changes will be presented by the end of 2026.
Many people on low and middle incomes do not dare to object when they are offered an apartment on unfair terms. “Those who are afraid of losing their roof over their heads will not object in case of doubt.“ Therefore, the legislator must take action here.
The Commission on Tenancy Law must present its proposals by December 31, 2026 at the latest. The Commission will include experts from the judicial and academic communities, from tenant and landlord associations, and from the German Association of Cities. It is also tasked with considering how the current relatively toothless regulation on rent increases in commercial criminal law can be reformed. It should investigate how it can be “given teeth,” Hubig said.
The current rule is: “Anyone who intentionally or recklessly demands, promises or accepts unreasonably high rents for residential premises or related ancillary services commits an administrative offence.” A rent that is more than 20 percent above the local comparative rent is considered unreasonably high.
Despite rent controls, renting in German cities is becoming increasingly expensive. According to a recent analysis by the Ministry of Construction, asking rents in the 14 largest independent cities have increased by almost 50 percent on average since 2015. since.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE