Tenant Group Argues for Additional Measures Beyond Rent Freeze Extension - To maintain affordable rental rates, insufficient rental income remains a persistent challenge.
Rent Cap Extended, but Tenants' Association in Berlin Seeks More
In a move seen as beneficial for tenants in Berlin, the federal government has proposed an extension of the rent cap until December 31, 2029. This legislative adjustment, however, has been met with criticism from the Berlin Tenants' Association, who argue that the continuation is insufficient without a federal-level application.
Wibke Werner, managing director of the association, emphasized the importance of the rent cap, particularly in Berlin - currently the hub for rent cap initiatives. "The extension is good news, but it needs to apply nationwide to truly protect tenants in new rental agreements," she said to the German Press Agency.
The proposed extension sets parameters for initial rents, allowing the rent not to exceed ten percent above the local comparative rent for newly rented apartments. Werner underscored the significance of this extension, claiming that it would have expired in Berlin by the end of 2025, leaving renters there unprotected.
The Berlin Tenants' Association also flags exceptions to the rent cap as problematic. New buildings, completed after 2014, are currently exempt from rent cap regulations. "We advocate for a revision of this rule," said Werner. "It's no longer justifiable to consider an eleven-year-old house as a new building."
The rent cap also does not apply in cases of comprehensive modernization and temporary rentals. The association demands prompt improvements to address these loopholes, reducing the opportunity for increased rents through undisclosed fees or questionable modernization claims.
Additionally, the association advocates for a more comprehensive regulation of the housing market, such as the socialization of housing companies. "Our goal is to ensure more affordable housing by placing management in the hands of community-oriented companies rather than profit-driven landlords," said Werner.
The association also pushes for the possibility of a state-level rent cap, as the federal constitution court deemed the Berlin rent cap unconstitutional in 2021. Werner suggests an opt-out clause that would allow states to implement their own rent caps if they so choose.
In summary, the Berlin Tenants' Association seeks more comprehensive and effective regulations to address ongoing housing affordability concerns in Berlin. National efforts, while appreciated, are perceived as a first step towards addressing the broader demands for systemic changes in housing regulations.
The Berlin Tenants' Association is calling for revisions in the national rent cap policy, advocating for its application on a federal level to protect tenants in new rental agreements across Germany. For a more balanced approach, they also propose a state-level rent cap, as allowed by the opt-out clause suggested for states to implement their own regulations. Furthermore, the association champions vocational training programs to nurture talent in real estate financing, business, politics, and general-news sectors, aiming to create a more sustainable and affordable housing market.
