The Berlin “Mietendeckel”
How does the rent cap work? Who does it concern? What are the exceptions?
Find out everything you need to know here!
+49 30 40 633 050
We are looking forward to your call.
100% free property valuation
personal and professional sales support
local partner with years of experience
What is the rent cap?
The rent cap describes a law which stipulates that the net cold rents of 1.5 million existing apartments in Berlin may not increase for 5 years. The net cold rent also includes all surcharges such as equipment or furniture. The law will come into force in 2020 with retroactive effect from 18 June 2019. This means that the rent to be paid may not be higher than that which applied on 18 June 2019. This also applies to graduated and indexed rents.
Information on exceptional cases can be found under “Who does the rent cap apply to?”.
When can the rent be capped?
The rent cap law also provides for capping of rents that are above 120% of the rent table if the tenant files a suit. The capping then amounts to exactly 120% percent of the specified values. In contrast to the rent cap alone, this regulation is only effective nine months after the law comes into force.
Information on the rent table can be found under “What is the rent table?”
Who does the rent cover concern?
The law affects existing apartments built before 2014. That’s about 1.5 million apartments in Berlin. Exceptions are flats of publicly subsidized housing construction, so-called “social housing”. Other exceptions are owner-occupied flats, such as flats in halls of residence, and new buildings which were ready for occupancy for the first time since 01.01.2014.
In the case of a first-time rental of the apartments affected by the rent cap, the specified rent cap applies (see rent table). This may not be exceeded.
In case of re-letting, the net cold rent of the previous tenant applies, up to a maximum rent of the value of the rent table. An apartment is considered to have modern facilities if it has at least three of the following characteristics:
-high quality sanitary equipment
-high-quality floor covering in the majority of living spaces
-sleeperless accessible elevator
-Energy consumption characteristic value of less than 120 kWh/(m2a)
If the previous rent of an apartment with modern equipment is less than 5 euros per square meter, the rent may be increased by a maximum of 1 euro to a maximum of 5.02 euros per square meter in the event of re-letting.
How does the rent cover behave during modernizations?
The apportionment of certain modernisations is still permitted, provided that the rent does not increase by more than 1 euro per square metre.
Overview of the permitted modernisations:
-Modernisations that landlords are legally obliged to carry out
-modernisations for thermal insulation of the building envelope, the basement ceiling, the top floor ceiling or the roof
-modernisations for the use of renewable energies
-modernizations for energetic window renewal
-modernisations for heating system replacement
-modernizations for elevator attachment or for the removal of barriers by removing thresholds, widening doors or rebuilding bathrooms
Who decided on the rent cap?
The Federal Government is not responsible for the rent cap, but the State of Berlin. The rent cap law was passed by the red-red-green government.
Until when does the rent cap apply?
The rent cap will apply from 2020 for 5 years retroactively to the cut-off date of 18 June 2019.
What is the rent table?
The rent table determines the upper limit of the net cold rent. Influencing factors are the age and equipment of the apartment.
From 2022, the rent may increase by 1.3% per year to compensate for inflation. However, this only applies if the rent remains below the upper limit of the rent table. The values in the table also change depending on the location of the apartment. For flats in a simple location, the rents in the table are reduced by 28 cents per square meter and for flats in a medium location by 9 cents per square meter. The rents in the table increase by 74 cents per square meter for apartments in good locations. If the living space is in a building with a maximum of 2 apartments, the rent ceiling increases by 10%.
Find out what criteria are used to determine the rental prices per square meter
|First-time occupancy of the apartment and equipment||Renting price per square meter|
|until 1918 with collective heating and with bath||6,45 Euro|
|until 1918 with collective heating or with bath||5,00 Euro|
|until 1918 without collective heating and without bath||3,92 Euro|
|1919 to 1949 with collective heating and with bath||6,27 Euro|
|1919 to 1949 with collective heating or with bath||5,22 Euro|
|1919 to 1949 without collective heating and without bath||4,59 Euro|
|1950 to 1964 with collective heating and with bath||6,08 Euro|
|1950 to 1964 with collective heating or with bath||5,62 Euro|
|1965 to 1972 with collective heating and with bath||5,95 Euro|
|1973 to 1990 with collective heating and with bath||6,04 Euro|
|1991 to 2002 with collective heating and with bath||8,13 Euro|
|2003 to 2013 with collective heating and with bath||9,80 Euro|
Source: Stadtentwicklung Berlin
Where do the tenants get the information from?
Landlords are obliged to provide their tenants with information on all facts relevant to the rental cover within 2 months after the law comes into force. The same applies before the conclusion of a new rental agreement.
Failure to comply with the rent cap may result in a fine of up to 500,000 euros. The respective districts, the Senate Department for Urban Development and the Investitionsbank Berlin are responsible for the review.
If the permissible rent leads to losses or to a substance endangerment for the landlords or the property in the long run, they can apply to the Investitionsbank Berlin. The Investitionsbank can approve an appropriate increase in the rent. In case of a WBS authorisation, the tenants can have the difference between the value of the rent table and the then approved rent for the appropriate part of the living space compensated.
Will the rents be increased before the law comes into force?
An increase in rents can be expected, but the increase is unlikely to succeed due to the retroactive application of the rent cap. As things stand at present, the basis is the rent that was agreed on the cut-off date of 18 June 2019, as long as it does not exceed 120% of the rent table.
Reactions and policy intentions
The rent cap law of the red-red-green Berlin government is still being examined for its constitutional legality. The CDU and FDP, for example, have announced that they will take legal action against the law. The parties are in agreement that new construction in Berlin must be pushed ahead in order to meet the great demand in Berlin.
Do you have any more questions?
We are happy to be at your disposal as contact persons, but we are no substitute for legal advice. Here we will gladly refer you to an expert. We would be happy to share our knowledge of the Berlin market with you and inform you about price developments. Please call us at 030 – 40 633 050 or write to us at [email protected] You can also simply drop by our office at Lychener Straße 2 – we look forward to seeing you!
Our services for sellers and landlords
CEO AB Real Estate GmbH
OUR UNDERSTANDING OF SERVICE
We understand service to mean that we are a professional partner at every step, and beyond, in the sale or rental of your property. Our handshake applies. Our real estate experts advise you, make recommendations and work with facts and figures. We organize and sift through all documents relevant to the sale and letting of your property, evaluate and market it. Our team brings the sale or letting to a successful conclusion.
LOCAL AND INTERNATIONAL CUSTOMER CARD INDEX
As an international real estate agency with German-French roots, we have a local and international client list. We regularly inform our clients via newsletter and mailings. Our agency practices a clear and binding approach. When selling or renting out your property, our qualified experts know the target group for your property. Be it a condominium, apartment building, loft or penthouse. We carry out a conscientious filtering of potential buyers and tenants. This also includes a credit check and a financing check. Our team conducts the viewings and finds suitable buyers and tenants for your property in Berlin.
With your consent, our real estate experts will conduct the purchase and rental negotiations with you. All relevant points in the purchase and rental contract are discussed with all parties. Our real estate agency takes over the coordination with the notary’s office and organises the preparation of the draft purchase and rental contract. A successful notary appointment will follow. We think in the long term and continue to be there for you after the contract has been concluded.
EXPERIENCE AND MARKET KNOWLEDGE
Our real estate experts have many years of experience and know the real estate market very well. We have insight into current market data and can therefore estimate trends. Our real estate agency is specialized in the Berlin real estate market, has an all-round view and knows the local conditions. This enables us to evaluate your property professionally, free of charge and in line with the market and to successfully let or sell it.
KNOW HOW FOR SUCCESS
We have a comprehensive know-how. Our real estate experts can professionally prepare analyses and documents and present them to you in a comprehensible manner. We market your property, whether it is a condominium, a multi-family house or a loft, with a suitable marketing concept and sales and rental strategy according to your wishes: online and offline, local and international, discreet or classic. We will find the right buyer or tenant for your property through our international client list or by marketing on the well-known German real estate portals and our three international websites. We show your property in the best light, with a property photographer and an exposé in German, French and English.
CONTACTS AND NETWORKING
Our German-French team has a widely ramified network of experts in Berlin. Whether you are a lawyer, notary, architect, surveyor or craftsman – our real estate agency has the right contact for you at every step – so that we can help you to sell or let your property quickly, smoothly and successfully.
+49 30 40 633 050
Short talk, fast answers.
We sell your property at its highest price.
AB Real Estate GmbH – your real estate agency in Berlin
Sell, rent or buy your property with us!