Rent cap under pressure: Hubig wants to close loopholes!

Rent cap under pressure: Hubig wants to close loopholes!

Rent caps are still a hot topic in Germany. Federal Justice Minister Stefanie Hubig (SPD) is now taking on this issue and is planning changes that will particularly affect the area of ​​furnished apartments. The aim is to stop the circumvention of the rent cap, which was made possible by advertising furnished apartments. Hubig's proposal provides clear rules for the amount of the furniture surcharge that can be charged in addition to the basic rent and which does not currently have to be shown in the rental agreement t online reported.

Currently, landlords in certain cities can charge significant surcharges for furnished apartments, which increases the rent significantly compared to unfurnished apartments. In the large metropolises, the share of these apartments already accounts for around a third of the entire rental market, according to the daily news. In Frankfurt am Main in particular, the proportion is at times as high as 41 percent, while Berlin takes the lead with average prices of 36.82 euros per square meter. This leads to a clearly noticeable increase in prices, not only in the metropolises themselves, but also in the rest of the country.

Unclear rules and high demand

The problem of high rents is exacerbated not only by the increasing demand for living space, but also by a lack of newly built apartments. The rent cap was originally intended to help regulate rental price developments. However, in practice it turns out that the regulations for furnished apartments are often not sufficiently enforced. According to current information, the proportion of furnished rental offers on real estate portals rose from 4% to 8% in the last two and a half years.

Another problem is the lack of transparency when it comes to furniture surcharges. According to a study by Oxford Economics commissioned by Hubig, it shows that more than two thirds of furnished apartments are offered by private individuals. There is hardly any clear legal regulation here, which leads to uncertainty and potential abuse. The Federal Council has already introduced a draft law to strengthen tenant protection with regard to short-term rentals, whereby the obligation to show the net rent and the furniture surcharge in the rental agreement should also be stipulated, as should the Haufe reported.

Outlook and further steps

The rent cap has been extended until 2029 and applies in areas with a tight housing market. For new rentals, the rent may not exceed 10% above the local comparative rent. This is usually recorded in rent indexes. Nevertheless, Berlin's governing mayor Kai Wegner (CDU) expresses fears of massive abuse in the area of ​​furnished living. He calls for the regulations and sanctions for violations of the rent cap to be strengthened. This shows that the discussion about clearer and fairer handling of the rental market is far from over.

The development remains exciting. In view of the uncertainty in the rental landscape, Hubig's requested changes and the Federal Council's further steps are to be welcomed. It remains to be hoped that rental prices for furnished apartments can also be made more transparent and fairer in the future.