Rent usury on Tegernsee: Rottach-Egern is one of the front runners!

Rent usury on Tegernsee: Rottach-Egern is one of the front runners!

Rent prices in the Miesbach district are skyrocketing and are causing heated discussions among citizens. According to current reports, the district ranks sixth in Germany when it comes to rent burden. Especially in the popular holiday resorts on Lake Tegernsee, such as Rottach-Egern, the prices are exorbitantly high. Mayor Christian Köck (CSU) speaks of offers in which 2,000 euros are due for 120 square meters of living space. Even with basic rents of up to 35 euros per square meter, it is clear that many employees are left behind.

The Bavarian state government has announced measures against rent usury, but the influence of municipalities on private rental prices is minimal. While the rent cap in Rottach-Egern is still in effect for municipal apartments, the costs for new buildings there have already risen to at least 9 euros per square meter. Demand from real estate agents shows that affordable rental apartments are few and far between; the focus is more on luxurious offers.

Legal challenges

Rent usury, a form of taking advantage of rental law, is not a trivial offense. If the agreed rent is more than 50% above the local comparative rent and the tenant's predicament is exploited, this is a clear case of rent usury according to Section 291 of the Criminal Code. In such cases, a prison sentence of up to three years or a fine can be imposed. A rent increase of 20% above the comparable rent is also not without consequences; here too, there is a risk of fines of between 20,000 and 50,000 euros, which the municipalities can impose.

Justice Minister Georg Eisenreich (CSU) has announced that she will take action against these practices, but the effectiveness of the planned measures is considered questionable by many. The German Tenants' Association also criticizes the fact that the supply of second homes and holiday rentals is increasingly displacing locals. In Rottach-Egern, the rent control is only effective to a limited extent, as living space there is likely to become increasingly scarce.

Social challenges

A study by Dataplus Research shows that single-person households in the Miesbach district spend around 37.4% of their net income on rent alone - that is almost 14 percentage points above the national average. This number not only alarms tenants, but also raises the question of the social permeability in the region. In Bad Wiessee, rents have risen to 14 euros per square meter, from 6 to 8 euros previously. Mayor Köck finds clear words: “The municipality cannot be held responsible for the accommodation of hotels and restaurants.”

Fortunately, there are also positive approaches. Waakirchen is planning to build new municipal apartments by the municipal company Wohnbaugesellschaft. This could help to ease the tense housing market situation somewhat.

The pressure on the housing market remains high while the Bavarian state government is trying to address the grievances. It remains to be seen whether and to what extent the new regulations can have an impact.

For more information on this topic, see reports from Mercury and Tenancy Law.com.