Increase in rental prices

2024-08-20 11:48:00, Kosova & Bota CNA

The apartment was not renovated properly. But the real estate agent is enthusiastic: "The location is very good, central!" He says that even Rini is not far from here, in Düsseldorf-Oberkassel, and that in this area you can do sports and run every evening. But the rent is not cheap. It is almost 1500 euros for an apartment of just over 80 square meters - without other services. And this is contrary to the provisions of the Law on limiting rent increases in Germany, which is in force. According to this law, the "ordinary local rent" cannot be exceeded by more than ten percent. It means that the rent of this apartment must be at least 400 euros less.

The law on limiting rent increases, introduced in 2015, appears to be largely ineffective. Because there are no consequences and sanctions for violating this law. It's clear that many landlords are ignoring the law - and raising rents even further. When asked about the rent increase limit, the real estate agent simply shrugs: "This price is already normal and we have many other offers here."

Increase in rental prices

Violations of the law are not controlled

Thanks to special software, Martin Peters from "Mietenmonitor" from Freiburg monitors real estate listings. Based on many factors, it calculates whether the requested rent is legally permissible or not. Peters is horrified by what he sees every day. Because it shows: almost, that no one cares about limiting rent increases. "Cities don't pay attention to enforcing this law, there's no body that controls it," Peters says. Mietenmonitor conducted a survey in Düsseldorf and concluded that around a quarter of rental apartment offers violate the rent restriction law.

The problem is that many tenants are not aware of the rent restriction law, according to Felicitas Sommer of the Technical University of Munich. As part of a joint research project with Ludwig-Maximilians University in Munich, around 10,000 tenants were surveyed. Another result of the research is that only 2.4 percent of the respondents dared to demand compliance with this Law from the landlord. The reason for this is that tenants should be proactive themselves and, as a last resort, sue in court. Many respondents say that they do not want to enter these procedures because they do not want to damage their relationship with the landlord or they are afraid that they will lose the apartment and that the landlord will give it to someone else. Sommer concludes: "The way the rent restriction law is currently drafted does not work and only serves as a decoration".

What do the authorities think?

Should the state react automatically to enforce this law? The Federal Ministry of Construction does not want to know anything about this. Federal Minister of Construction, Klara Geywitz, says it is possible to go to court if landlords break the laws. "We do not have a state to play nanny, to interfere in contractual relations between two private individuals".

Increase in rental prices

However, the German Tenants Association has a different view. Its president Lukas Siebenkotten says: "I agree that people should fight for their rights themselves. But if they don't do it because of fear or concern, I think the state should intervene in that case."

Frankfurt and Freiburg are fighting for tenants

In fact, there are several cities that have taken on these obligations, and one of them is Frankfurt: When citizens report excessively high prices, the city initiates legal action on their behalf. However, the "rent price brake" is not used here either, which applies to increases above ten percent of the normal price, but the law on economic offenses. According to this law, if the rent increases by 20 percent, it is considered excessive and in in this case, a fine can be imposed, and if the rent increase is 50 percent or more, it can be considered an unreasonable and excessive rent, which can lead to a prison sentence for the landlord.

The situation is similar in the city of Freiburg. This city automatically acts on behalf of citizens and contacts landlords suspected of ignoring applicable laws. The city itself even reported a case of abuse and unjustified rent price increases. However, the court proceedings were eventually suspended. This abuse means that the landlord has taken advantage of the tenant's unenviable position, which is difficult to prove in court in an individual case./ DW