BGH: Rental price brake in Berlin remains right despite criticism!

BGH: Rental price brake in Berlin remains right despite criticism!

The rental price brake in Berlin remains on the legal road! The Federal Court of Justice (BGH) has decided that the regulation has been constitutionally permitted since 2015. This judgment, published on December 19, 2024, secured the rights of many tenants in the capital. A tenant from Berlin-Mitte, who was faced with a relay rental contract, was faced with monthly net rents of 1,931 euros. Thanks to the rental price brake, however, its rent may only be a maximum of ten percent above the local comparative rent, which is protected from dramatic increases, such as rbb24 reported.

The rental price brake applies to the entire Berlin city area, which is classified as a tense housing market. This means that when renting living space, the price must not be over 10 percent of the local comparative rent. This regulation is based on the paragraph 556d of the Civil Code (BGB) and a special rental price limitation regulations of the State of Berlin. According to mietrecht.com there are exceptions to this regulation, in particular for new buildings and extensively modernized apartments that were first rented after October 1, 2014. Here landlords can define the prices without the typical cap.

The decision of the BGH confirms the need for the rental price brake in Berlin characterized by lack of housing and thus strengthens the legal claims of the tenants. While the Berlin Senate tried to tighten the regulations by its own law in the past, this attempt was declared unconstitutional. It remains to be seen whether the regulation can be extended by 2029, which was recorded in the coalition agreement of the Federal Government.