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Rental fees insufficient to maintain affordable rental rates

Tenant Group Argues for More Comprehensive Extension of Rent Cap Adjustments

Housing market needs tighter control, asserts Berlin Renters' Union, aiming to curb escalating...
Housing market needs tighter control, asserts Berlin Renters' Union, aiming to curb escalating lease prices.

Tenant Group Argues for More Rent Regulation Reform, Claiming Current Extension Inadequate - Rental fees insufficient to maintain affordable rental rates

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The Berlin Tenant Association (BTV) has voiced concerns over the planned extension of the Rental Price Brake (RPB) nationwide, stating it is a positive step but not sufficient in protecting renters in Berlin, the city's prime hub for RPB application.

Speaking to the German Press Agency, BTV's Managing Director, Wibke Werner, emphasized the importance of maintaining the RPB at the federal level, as it currently serves as the sole instrument for limiting rent increases in new leasing agreements.

The extension, as proposed by the federal cabinet, would keep the RPB in place until December 31, 2029. The RPB caps the rent for new leases at no more than 10% above the local comparative rent.

Werner underlined that if the RPB had not been extended federally, it would have expired in Berlin as well by the end of 2025, leaving renters in the city without protection when signing new leases.

The BTV has also expressed criticism towards the RPB's exceptions, particularly regarding new buildings completed after 2014 and substantial renovations. The association argues that classifying properties up to eleven years old as new is unjustified and undermines tenant protection.

Werner also pointed out potential abuse by landlords claiming extensive renovations, which they argue can bypass the RPB limits and lead to rent hikes. Short-term rentals, often for furnished apartments, are another area of concern, as they can raise rents through an opaque furniture surcharge.

The BTV has proposed several changes: revising the classification of new buildings, strengthening regulation around renovations, and reinforcing the RPB to make it more effective in controlling rental price increases in Berlin's housing market. The association also supports the possibility of a rent cap and has advocated for an opt-out clause that would allow state governments to enact such legislation.

In the 2021 referendum, a majority voted in favor of municipalizing large real estate companies with over 3,000 units. The BTV has suggested municipalizing housing companies to put more apartments in the hands of community-oriented companies and away from profit-driven landlords.

  1. The Berlin Tenant Association (BTV) highlighted the need for community-oriented companies to manage housing, owing to their strong support for municipalizing large real estate companies in a 2021 referendum.
  2. In their proposed changes, the BTV suggested improving vocational training programs for property managers and administrators, aiming to promote business practices that prioritize tenant protection while adhering to the community policy.

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