News (english)

Socialists freeze rents in Berlin

Today, Tuesday, October 22, 2019, the red-red-green Senate wants to decide on the rental cover for apartments, older than 2014. The rents are to be frozen for five years and upper limits for new rentals are set. At the beginning of 2020, the law should have been abrogated by the House of Representatives and apply retroactively from 18 June 2019.

In Berlin flats should be allowed to cost a maximum of 9.80 euros net cold per square meter when tenants change. So it should provide for the planned law (Mietendeckel) künfig. The average asking rents in the capital are currently 11.60 euros per square meter.

The upper rent limits are calculated according to the year and equipment. In an apartment built between 1919 and 1949 with central heating and bathroom, for example, a surcharge of 1.68 euros is permitted. And on the basis of the Mietspiegel 2013 plus 13.5 percent – regardless of the location of the apartment.
From 3.92 Euro / QM cold to year of construction 1918 without central heating and without bath to 9.80 Euro / QM for between 2002 and 2013 built apartments should be the highest rents. For energetic or handicapped modernizations a maximum of 1 Euro surcharge is possible.

While these leases may not be exceeded in the case of new lettings, the lessee should be able to demand a reduction of the rent for existing leases of more than 20 per cent. The rental cover is expected to come into effect early in 2020 with retroactive effect from 18 June 2019 and the rent reduction rule expected to come into effect at the end of 2020.

Not only companies from the Berlin construction and real estate industry but also many craft associations warn of far-reaching negative effects on the economy.

The planned Mietendeckel would be unconstitutional according to current legal opinion. “We enter new territory,” said the Berlin government socialists.

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