The Berlin rent hight covering act is available as a bill and should be so from 2020 Act. The rents are then frozen retroactively to 18.6.2019 for five years.
The draft law on rent limitation in Berlin (Berlin RentWoG) provides for upper rent limits, depending on the equipment and age of the apartment, between 5.65 and 9.80 euros per square meter for all apartments in Berlin, instead of the previously from the left Mrs. Lompscher announced maximum rents from 3.42 euros to 7.97 euros.
The new rental cover
The permissible rental amounts are determined by the values of the rent index 2013 and not by 2011, as requested by Mrs. Lompscher. The current rent index is then no longer valid.
10 percent surcharge is possible for apartments in one- and two-family houses or in the case of modernization in the last 15 years (maximum € 1.40 per square meter). The upper rent limits should also apply to furnished apartments.
Modernizations must be reported to the district office and approved from 1 Euro per QM.
Slight rent increases up to the upper limit based on the inflation rate are possible.
Rental limits apply to re-letting and reduction applications.
Hardship regulations for landlords who prove that an increase above the rent limit is necessary to avoid permanent losses or endangering the building fabric.
If a tenant wants to lower his rent, he must disclose his income. In addition, this is only possible for a reasonable square footage. This area is based on the Berlin Housing Act. For example, 50 QM for a single-person household, 65 QM for a two-person household, 80 QM for a three-person household and 90 QM for a four-person household. Each additional person in the household counts with twelve square feet in addition. Rent reductions must be applied for and can be approved if the current net cold rent exceeds 30 percent of household income.
Various lawyers have already expressed doubts about the constitutional conformity and certainly there will be corresponding complaints.
Above all, it is certain that the announcement alone will lead to considerable uncertainty among landlords. Already massive investments are stopped.
Housing companies stop investing in Berlin because of the rental cover
The state of Berlin lacks legislative competence. The property guarantee according to Article 14 of the Basic Law must also be observed. Mrs Lompscher from the SED successor party does not seem to care.
The solution to alleviate the housing shortage is elsewhere, as the experts agree. Reduction of bureaucracy, reduction of construction costs, designation of building land – ie promotion of new construction.