Rent Cap Berlin

What to do as a landlord?


Berlin rent cap - the law applies immediately!

As of February 23, 2020

Mietendeckelpflichten Vermieter

What are the most important obligations for you as a landlord now?

1. For existing tenants: obligation to provide information within two months (due to the Corona crisis, the deadline was extended by 6 months)

As the landlord, you must provide information on the relevant circumstances for calculating the rent limit within eight months of the entry into force of the law on the rental cover (effective date: February 23, 2020) and before entering into a new rental agreement. You must also inform us of the amount of the rent on June 18, 2019 on request. If this does not happen, the tenant can report this violation to his district housing office or contact a district tenant advisory service.

 

You can download the landlord information template here:

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Landlord information template in german
Bergen Real Estate
Vermieterauskunft Vorlage.pdf
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2. For new leases: calculate the new maximum rent and provide information

In the case of new or re-letting, completely new rent ceilings apply, which must be observed. Anyone who demands a higher rent is guilty of an administrative offense that can be punished with a fine of up to 500,000 euros.

 

The basic rule is: the new rent may not be higher than the previous one, but may not exceed the new rent limits (see table). In addition, the landlord must provide the tenant with information about the circumstances of the calculation and the amount of the previous rent (key date rent) before the contract is concluded.

 

These effects will also apply to existing rents from November 22, 2020, because from this date the cover rents will also apply to existing contracts, the amount of which must then be adjusted.


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Rent cap table Berlin

These are the price caps

Attention: This table also expressly applies to furnished apartments in Berlin with temporary leases.

Permitted net cold rent and usury rent value in euros per square meter (rent index 2013 plus 13.5 percent inflation surcharge)

    Excess rent limit *
Year of construction and equipment

general upper limit

for new rentals

Simple

area

Middle 

area

Quality 

area

until 1918        
with collective heating and with bath 6,45 7,40 7,63 8,63
with collective heating or with bath 5,00 5,66 5,89 6,89
without collective heating and without bathroom 3,92 4,37 4,60 5,59
1919 to 1949        
with collective heating and with bath 6,27 7,19 7,42 8,41
with collective heating or with bath 5,22 5,93 6,16 7,15
without collective heating and without bathroom 4,59 5,17 5,40 6,40
1950 to 1964        
with collective heating and with bath 6,08 6,96 7,19 8,18
with collective heating or with bath 5,62 6,41 6,64 7,63
from 1965 with collective heating and with bathroom        
1965 to 1972 5,95 6,80 7,03 8,03
1973 to 1990 6,04 6,91 7,14 8,14
1991 to 2002 8,13 9,42 9,65 10,64

2003 to 2013

9,80 11,42 11,65 12,65

* including location discount of 0.28 euros / sqm (simple residential area), 0.09 euros / sqm (medium-sized residential area) and location surcharge of 0.74 euros / sqm (good residential area)

Source: Senate Department for Urban Development

Status: 23.02.2020 - All information is without guarantee of accuracy and completeness

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Rent cover Berlin table in german
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Sell or Rent?

"Don't wait for the decision of the Federal Constitutional Court - Sell now your condominium in Berlin to owner-occupiers or to international custodians at the best price before the sales prices fall and you have to rent your apartment again at a dumping price. "


Calculation example for landlords in Berlin

Apartment in Berlin Old rent  New rent Re-letting

Year of construction 1900 - 60sqm in a good residential area, good facilities, rented furnished.

16 Euro/sqm =

960 Euro

8,63 Euro/sqm =

517,80 Euro

8,19 Euro/sqm =

491,40 Euro

You will have a monthly loss of

-442,20 Euro

minus 46,1%

per month when rent is reduced

-468,60 Euro

minus 48,8%

per month for new rentals



Real estate sale checklist (free)

Checkliste Immobilienverkauf

Rent cover Berlin table
Rent cover Berlin table (please click to enlarge)

These prices are no longer a dream of the future, but reality for you as a landlord. We would be happy to advise you on how to sell your condominium in Berlin to owner-occupiers or international custodians as quickly as possible and at the best price.


Bergen Real Estate specializes in a new target group-oriented marketing of real estate.

We mediate and market residential and commercial properties to local or international Networks of private and institutional customers without using the classic sale channels.

With our strategy we are fastdiscreet and above all innovative.

Contact us today

we will get back to you as soon as possible (usually within the first hour)

Hinweis: Bitte die mit * gekennzeichneten Felder ausfüllen.


Extract from our references


Understanding Berlin's Rent Controls

According to Deutsche Bank AG, the price of property rentals in Berlin have seen the most growth of just about anywhere in Europe over the last five years. Even before the global pandemic made the problem more acute for renters, ordinary residents in the city had seen an upturn of 28 per cent in that reporting period. Partly to deal with spiralling costs and partly as a response to the healthcare crisis, Berlin's authorities introduced citywide price controls. In short, this means a Berlin rent freeze.

The rent cap Berlin landlords

The rent cap Berlin landlords now have to adhere to covers all residential property but it does take account the differing standards of dwellings. The maximum that a newly renovated residence can now be rented out for, per square metre, is €10.80 a month. Critics of the scheme have pointed out that the rent cap Berlin now sees will make renting out properties less profitable which is going to put a brake on new building work, conversions and renovations. That said, the move has been largely welcomed by tenant groups.

It is important for landlords to note that the rent cap Berlin residents are now able to invoke applies to property owners both in Germany and overseas. Rents that are above the maximum allowed levels must be lowered. Various factors play their part in how the maximum rental incomes are calculated, largely relating to the age of the property, whether it has central heating and its own bathroom. Further details about the rent control levels can be found here. In the meantime, many landlords are now faced with working out whether their rental incomes make remaining in the property business one that is worthwhile or not. Some will inevitably choose to sell their property investments which could have an unforeseeable impact on the property market in Berlin as a whole.