Rental price brake: New fines for landlords for price violations!

Rental price brake: New fines for landlords for price violations!

A explosive topic that currently employs living market policy in Germany is the increasing number of furnished apartments and their influence on rental prices. According to the current plans of the Federal Minister of Building Verena Hubertz (SPD), landlords who consciously violate the rental price brake will be occupied by fines in the future. Hubertz makes it clear that excessive prices for furnished apartments are a serious problem and that the bypass of the rental price brake cannot be accepted. Your goal is to stabilize the housing market and to secure affordable living space for all citizens, reports Tixio.

In the metropolises of Germany, furnished apartments are now an integral part of the rental market. A third of rental offers in cities such as Frankfurt am Main, where the proportion is even around 41 percent, is furnished. This development contributes to increasing rental prices, not only in the big cities, but on the entire housing market. The demand for rental apartments has risen sharply, which is particularly due to the shortage of housing. This shifted demand means that the proportion of furnished apartments has also climbed from three to eight percent in cities with 100,000 to 500,000 inhabitants, as reported by Tagesschau.

prices and regulations in the focus

But what does that mean specifically for the tenants? Furnished apartments are often considerably more expensive than impossible. In Berlin, rents for furnished units can be up to 36.82 euros per square meter, which corresponds to a surcharge of around 18 euros compared to impossible apartments, as NDR notes. However, the legal framework is unclear. Although furnished apartments generally fall below the rental price brake, only a maximum of 10 percent may be above the local comparison rent. Landlords often use a back door due to the temporary rental, which means that the rental price brake is easily bypassed.

Again and again there are demands for clearer regulations for the collection of furnished apartments in the rental price brake. Political initiatives, especially from Hamburg and Bremen, aim to show and limit the furniture surcharge separately. A legislative initiative has already been presented in the Federal Council, but the consultation has been stalled since July 2023. However, the Ministry of Justice does not see any systematic conversion of empty apartments into furnished units.

an outlook on the upcoming measures

Current developments clearly show that politics is required to regulate the housing market and to ensure a fair pricing for tenants. Rolf Bosse, chairman of the Hamburg tenant association, emphasizes that rental price development is pressing and demands a stronger rent stop to defuse the situation for those seeking housing. It remains to be seen which specific measures are ultimately decided and whether the planned fines for landlords will actually show a noticeable effect.

The discussion about the rental price brake and the associated challenges are far from being completed. It is all the more important to keep an eye on the developments and to pursue the political steps with an eye. We keep you up to date with regard to the new framework for the rental market, because a good building policy is required here!