Berlin short-term rental ban 2016: EU complaint filed

Since May 2014, Berlin's Misuse of Housing Act (Zweckentfremdungsverbotsgesetz) has required that residential space be used only for living. From 1 May 2016, the rule explicitly prohibited renting out entire apartments through platforms such as Airbnb, Wimdu, or 9flats. Fines of up to 100,000 euros applied.

Shortly after, the European Holiday Home Association (EHHA) announced it would file a complaint against the State of Berlin with the EU Commission.

The association's arguments

Bernd Muckenschnabel, EHHA vice president, told the Funke newspaper group that the law "violates citizens' property rights." The association cited several EU legal grounds: property rights, freedom of business, the 2006 EU Services Directive, and the free internal market. The complaint was to be filed in Brussels in May 2016.

Impact on the housing market

The inner-city boroughs of Mitte, Friedrichshain-Kreuzberg, Prenzlauer Berg, and increasingly Neukoelln were most affected. Short-term letting had been a profitable business model for many owners there. With the ban, investors who had purchased properties specifically for this purpose had to rethink their strategy.

The Senate's goal: return thousands of apartments to the regular rental market and slow rent increases. Over time, the ban was intended to increase the supply of standard rental housing.

Legal uncertainty

The announced complaint to the EU Commission created a period of legal uncertainty. Whether and when infringement proceedings would be initiated remained unclear. Market developments in the following years showed that the ban remained in place in Berlin and was later continued in modified form. Owners should review the current legal situation before making investment decisions.