A destructive law

The Berlin Senate decides to cap the rents. The opposite of tenant protection is thereby achieved. More owners will sell their apartments – to owner-occupiers. An analysis of the largest German real estate portal showed that 40% more unlet and 25% more rented apartments are currently being sold. It will be more difficult for tenants to find an apartment. Owners fear for their returns because of the rent cover. Nevertheless, bargain hunters should have no hope. Condominium prices continued to rise. The demand is unbroken.

Who are the winners? It is the better earners, for example the pair of double earners, who will save more in their chic old building in a top location than the family in less sought-after locations. At least until the constitutional court overturns the controversial state law or at least the second part (the reduction options for the rent, planned for November). However, this can take a few years. The Berlin Tenants Association recommends that tenants cover the difference between the reduced rent and the rent paid until then – until the constitutional court has reviewed the law. Many tenants will believe the Red-Red-Green government and spend the money. In the end you will have the notice of termination in the mailbox due to late payment. But maybe legal aid or taxpayers’ money will help. After all, the state government is already buying expensive properties that were cheaply sold years ago. How to buy votes, because 85% of Berlin voters are ultimately tenants.

The rental cover will not create living space, it will harm most low-wage earners, scare off investors (lack of legal certainty) and prevent necessary investments in the portfolio. Bad for the craftsmen in the real estate industry. But the law is also of no benefit to tenants. When things get worse, it is said to make calls for expropriation louder, a destructive law.