Rent cap. What now? 

What the Rent Cap is supposed to do, how it affects your real estate in Berlin and what you can do.

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The Rent Cap "Mietendeckel". What landlords, sellers and buyers can do now.

The Senate is aggressively opposing owners. React now.

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Peter Guthmann

The rent cap raises many questions. Before you submit your real estate commitment in Berlin to a stress test, first inform yourself with us about the background and the effects of the rent cap.

Peter Guthmann, Director

In need of a strategy

The Berlin Senate has approved the rent cap. It is still unclear whether the law is in accordance with the constitution. Nevertheless, you should now work with us to develop a strategy for your real estate in Berlin.

Is the boom over?

It is expected that rented apartments will give way in price. If your apartment becomes vacant, you should consider selling it now.

Trust the best professionals in Berlin

We are your alert service on the real estate market in Berlin. Contact us for advice.

 

Getting the right moment

Detailed knowledge is the top priority. This applies to the way owners deal with tenants, to the sale and equally to your holding strategy. You decide which way you want to go. We flank your decision with know-how.

Our knowledge. Your safety. 

The rent cap has been fixed. Although it is still unclear whether it will actually come, the SPD, the Left and the Greens in the Senate have succeeded in creating the greatest possible uncertainty among landlords and tenants. We are in contact with associations, lawyers, journalists and politicians. We are your link to information and your bridge to the market.

FAQ Rent Cap

What is the rent cap?

The planned rental law was passed by the Berlin Senate on 21.10.2019. It intends to interrupt the market mechanisms in Berlin by freezing and lowering rents. By law, rents are to be frozen for a period of five years as of June 18, 2019. "Excessively high" rents for new rentals and existing leases are to be reduced to an "appropriate" level. The new rent ceilings are based on the values of 2013.

Rent table (Source: Senate Department for Urban Development and Housing)

First time occupancy of the apartment und Ausstattung Rent per sqm
until 1918 with collective heating and with bathroom 6,45 Euro
up to 1918 with collective heating or with bathroom 5,00 Euro
until 1918 without collective heating and without bathroom 3,92 Euro
1919 to 1949 with collective heating and bathroom 6,27 Euro
1919 bis 1949 mit Sammelheizung oder mit Bad 5,22 Euro
1919 to 1949 without collective heating and without bathroom 4,59 Euro
1950 to 1964 with collective heating and bathroom 6,08 Euro
1950 to 1964 with collective heating or with bathroom 5,62 Euro
1965 to 1972 with collective heating and bathroom 5,95 Euro
1973 to 1990 with collective heating and bathroom 6,04 Euro
1991 to 2002 with collective heating and bathroom 8,13 Euro
2003 to 2013 with collective heating and bathroom 9,80 Euro
newer than 2014 no restrictions so far
How does the rent cap affect the value of my property?

At the moment, the real estate market in Berlin is segmenting more strongly than before into rented and vacant apartments. Buyers are hesitant. As our weekly market analyses show, rented apartments are falling slightly, while vacant apartments are rising in price. The Senate did not succeed in triggering the desired panic in the market and causing a price collapse. Nevertheless, the rent cap is already visibly slowing down the sale of rented units. How the market reacts to the current developments can be seen at first glance in our market reports.

Is the rent cover already effective?

It is planned to introduce it by state law in 2020. The Senate's view is that the regulations will take effect retroactively to the cut-off date of 18 June 2019. Various lawyers, on the other hand, are of the opinion that the law has not been passed and that the German Civil Code (BGB) applies. It will be passed in spring 2020 at the earliest. It is already becoming apparent that complaints will be lodged against the law immediately after it enters into force. The situation in the coming years will be marked by a number of uncertainties.

Shall I hold or sell?

The degree of the planned rent cap does not only concern owners of apartment buildings in Berlin, which have already been considerably restricted by previous regulatory measures. Small landlords, cooperatives and municipal housing associations are also sceptical about the Senate. Losses due to capped or reduced rents, losses in the value of the properties and the lack of legal certainty influence the way owners and the buyer's market behave. Owners who are considering selling their properties for the short or medium term should consider selling any apartments that become vacant. Time-limited leases must be well-founded. To avoid formal mistakes, we recommend legal advice. Even if no sale is desired, an expert or a lawyer should be consulted for the organization of the lease.

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Kontakt

Guthmann Estate GmbH

Blücherstraße 22
Aufgang 1
10961 Berlin
Deutschland

Telefon: +49 30 69004240
E-Mail: info@guthmann.estate