Tenants' Group Argues for More Comprehensive Rent Relief Measures - Insufficient Rental Income Prevents Reduction in Rental Costs
The Berlin Tenants' Association has voiced dissatisfaction over the proposed extension of the federal rental price cap, viewing it as a step in the right direction but insufficient. According to the association's managing director, Wibke Werner, the continuation of the rental price cap at the federal level is vital to limit rent increases in new leases, particularly in Berlin, where the rental price cap is most commonly applied.
The federal cabinet has tabled a draft proposing the extension of the legal rental price cap till the end of 2029. Under this proposal, the rent should not exceed the local comparable rent by more than ten percent when a flat is newly let. Werner emphasized that without the federal extension, the rental price cap would have expired in Berlin by the end of 2025, leaving tenants unprotected during new lease agreements.
The Berlin Tenants' Association has criticized exceptions to the rental price cap, particularly those that apply to new buildings. New buildings are categorized as flats completed after 2014, and the association contends that this cut-off date is no longer justifiable. This issue is significant in Berlin, where an average of 15,000 new flats have been built annually in recent years.
The association also criticizes the exemption of flats undergoing comprehensive modernization, arguing that this loophole is often exploited by landlords pretending to make extensive renovations without actual improvements to tenants' living conditions or experience. Another concern is the lack of regulation over short-term rentals, which exacerbates housing shortages in cities like Berlin, contributing to the increase in long-term rental prices.
In addition to these demands, the Berlin Tenants' Association has called for the possibility of a rent cap and the municipalization of housing companies. Werner suggested that municipalizing community-oriented companies could help provide more affordable housing options for tenants. Furthermore, the association supports an opt-out clause allowing states to implement rent caps, despite the Berlin state law on rent caps being struck down by the Federal Constitutional Court in 2021.
The Berlin Tenants' Association, keen on investing in the community's welfare, has proposed vocational training programs for members to better understand real-estate finance and making informed decisions about business opportunities, such as investing in affordable housing ventures. With the federal extension of the rental price cap ensuring the protection of tenants during new lease agreements, the association foresees potential possibilities for acquiring and managing properties within this framework.
