Tenant Group Criticizes Rent Freeze Extension as Inadequate - Rental cost inadequately covers expenses to maintain affordable rent.
Berlin Tenants' Association: Extension of Rental Price Brake Falling Short of Expectations
The Berlin Tenants' Association has expressed dissatisfaction with the planned extension of the rental price brake, stating that it is not yet sufficient, particularly at the federal level. According to the association's managing director, Wibke Werner, this is the only current tool for controlling rent increases in new lease agreements, and Berlin is the epicenter for the application of the rental price brake.
The federal cabinet has put forth a proposal for the continuation of the rental price brake law until December 31, 2029. This extension allows for a maximum 10% increase over the local comparative rent for flats newly let. However, the debate has ensued over exceptions to the rental price brake, primarily concerning newer buildings.
Specifically, the regulation applies only to apartments built before October 1, 2014. Properties completed after this date are classified as new construction, exempt from the rental price brake restrictions, which creates a considerable loophole in tenant protection. The Berlin Tenants' Association strongly advocates revising these exceptions, arguing that an eleven-year cutoff for "new" buildings is outdated and no longer justifiable.
Additionally, the association emphasized concerns over the applicability of the rental price brake during comprehensive modernization, as well as exclusions for short-term rentals. The Tenants' Association called for reforming these aspects urgently.
In an effort to strengthen tenant protections, the Berlin Tenants' Association advocates for a rent cap and the possibility of expropriating housing companies. They believe that this approach could help increase the number of apartments managed by companies oriented towards the common good, rather than rent-seeking landlords.
It remains to be seen whether these proposals will be implemented and when housing companies become eligible for expropriation. The Berlin Tenants' Association emphasized that it is not a feasible solution to simply expropriate all companies above a certain size, and they continue to call for the opt-out clause allowing the federal states to enforce rent caps.
In summary, the extension of the rent brake has been extended until 2029, but the Berlin Tenants' Association criticizes the continued exceptions for newer buildings, which it regards as a significant loophole in tenant protection. The association calls for updates to the exemption date, the abolition of loopholes in short-term rentals, and the possibility of rent caps and expropriation to strengthen tenant protections.
- The Berlin Tenants' Association advocates revising the exceptions for newer buildings in the rental price brake policy, arguing that the current 11-year cutoff for "new" buildings is outdated.
- In addition to addressing exceptions for newer buildings, the Berlin Tenants' Association has expressed concerns over the applicability of the rental price brake during comprehensive modernization and exclusions for short-term rentals.
- The Berlin Tenants' Association encourages the consideration of rent caps and expropriation of housing companies as potential solutions to strengthen tenant protections in both finance and politics, particularly within the context of industry and business.
