For almost a year now, rent prices in Berlin have been limited by the Berlin rent cap. More specifically, rent prices in the Berlin property market have been capped since 18 June 2019 (retroactively) and must not exceed a certain maximum rent for at least five years.

The effects on the Berlin property market are currently still difficult to predict. According to a study by the property portal Immobilienscout 24, rent prices in Berlin are more stable than in other German states as a result of the rent cap and are even declining in some cases. As a result, however, there are also fewer properties on the market to let. Listings on Immobilienscout for rental flats built before 2014 have fallen by 44% in one year.

However, the number of enquiries per property on Immobilienscout 24 has risen by 231% in just under a year. It remains to be seen what further impacts this rent cap will have.

The cap previously only applied to new leases, with the next step to follow at the end of the year.

According to the Law on Rent Caps in the Housing Sector in Berlin (Gesetz zur Mietenbegrenzung im Wohnungswesen in Berlin), the second stage of the law will enter into force on 23 November 2020. This second stage extends the rent cap to tenancies that were already in place before  the law came into force. This will give tenants the opportunity to reduce their rent if it is too high. According to the law, rent is too high if it exceeds the rent ceilings listed in the rent table by more than 20%.

The rent ceiling for each individual property must be calculated precisely. There are several factors that can lead to an increase in the rent ceiling. However, the rent table provided in § 6 of the law provides an initial indication.

If you have any questions regarding this matter, we would be happy to advise you.
ADEN Immobilien, your estate agent in Berlin, will also be happy to find the ideal tenant for your property!

What we can do for you

Going through applications or being on site to conduct property viewings takes time and is often stressful. The lettings team at ADEN Immobilien has been providing its services and bringing its expertise to bear for several years to assist you with your rental project. We do everything for you: from assessing the rental price of your property to signing the tenancy agreement!

Property rentals

Preparatory measures:
We not only get an idea of the property and the neighbourhood, but also examine the need for any repairs or renovations.

Rental price assessment and advice:
‘Rent cap’, ‘rent brake’, ‘rent index’ – these are all essential concepts that should be considered when setting your rent but may seem rather vague to you. We advise you on the best strategy for your project and help you understand your obligations as a landlord

Finding a tenant in stages:

Synopsis: Upgrade your property while remaining true to reality – a successful strategy with our high-quality presentation options, including:

  • professional HDR and wide angle photos
  • virtual tour (360°)
  • robust description

Application pre-selection:

We receive dozens, sometimes hundreds of applications for a single property. We take over the job of reviewing all these documents and filtering out any dubious or unsuitable applicants.

Viewings:
Viewings can be held from the day after the property is listed online. We offer several viewing times to give everyone the opportunity to apply for the property and, above all, to view it. A happy tenant is a happy landlord!

Selecting a tenant:
Meeting prospective tenants is not enough. We carefully collect and analyse their documents so we can pass on the most qualified applications that meet your criteria. The process includes checking for any rent arrears, performing credit checks, reviewing employment contracts – a range of actions that allow us to select a serious candidate for you, someone with financial stability and respect.

The benefits of using ADEN Immobilien

  • Knowledge of the market and understanding of the legal context
  • Save time and energy: Our team’s availability and commitment means you can concentrate on everything else going on in your life.
  • Long-term partnerships with craftsmen and administrators who are familiar with an international clientèle.

Contact us to start your search!

Tel.: +49 (0)30 61 67 51 15
Email: 

On 14 May 2020, the German Bundestag debated and passed the law on the ‘Distribution of Brokerage Fees in the Procurement of Sales Contracts for Flats and Single-family Houses’. The law was confirmed by the German Bundesrat and published in the German Federal Law Gazette on 23 June 2020. The law became legally effective upon promulgation in the German Federal Law Gazette and will enter into force six months later, i.e. on 23 December 2020.

The law marks the first time payment for brokerage services is regulated nationwide. This means that brokerage costs will usually be split 50/50 between buyer and seller.

Current situation

In Berlin, Brandenburg, Hamburg, Bremen and Hesse in particular, the law will lead to changes since 100% of commissions have been paid by buyers until now. There has been no legal provision until now and it has been common practice in Berlin in particular to charge the buyer what is known as an external commission of 7.14% of the purchase price.

What’s the idea behind the law and what does it mean for buyers?

To buy a property, you have to pay additional purchase costs in addition to the purchase price for the property.

In Berlin, these ancillary purchase costs currently total around 14.5% of the purchase price. As a rule, these costs cannot be financed and must be paid for with equity. This law was developed to reduce these additional purchase costs. This means that ancillary purchase costs in Berlin can be broken down as follows:

  • 6% tax on the transfer of land
  • 57% brokerage fees (incl. 19% VAT)
  • 1.5% to 2% notary and court fees (depending on additional fees)

Unfortunately, it is probably out of the question for legislators to decide to reduce the land transfer tax.

What will the rules look like in future?

For all sales contracts concluded after 23 December 2020, the provisions of the new law will apply.

The law on the ‘Distribution of Brokerage Fees in the Procurement of Sales Contracts for Flats and Single-family Houses’ (purchaser principle) consists of the following:

  • All contracts between brokers and buyers/sellers must be in writing.
  • As soon as a broker begins acting on behalf of a buyer and a seller, both parties have concluded a brokerage agreement with them and the broker mediates a purchase agreement, the brokerage fee is payable by both parties at 50% each.
  • Of course, the possibility of a 100% internal commission always remains.

The law applies to all property that serves as a living space. Commercial properties and residential properties with multiple units are excluded.

What does the purchaser principle mean for sellers?

Beginning on 23 December 2020, all sellers nationwide will have to pay at least 50% of the brokerage fee to be paid. This will make the sellers pay even more attention to the broker’s performance, i.e. us as your estate agent in Berlin. This will lead to market consolidation.

Why should you seek advice?

Property represents considerable value and in most cases is not just a flat or a house. After all, property is also an investment or even a retirement plan. The value of a property alone makes it necessary to have a good advisor at your side. Whether you’re buying or selling. But when it comes to sales, many mistakes can be made that can reduce possible profit.

The purchase price

It is extremely important to correctly assess the value of a property. This is because a property whose value has been incorrectly assessed can lead to losses.

Too high a price leads to an extended selling period and a high level of awareness among interested parties. However, this awareness means that a property will generally need to be reduced in price in order to reach new prospective buyers. This may result in the desired purchase price not being attainable. The result is a downward spiral.

A lower purchase price results in high demand with many interested parties wanting to buy your property. Negotiations and discussions conducted professionally with all interested parties can result in an upward spiral since demand determines what you will be offered.

Professional marketing

No matter what strategy you want to implement as a seller, professional marketing is of critical importance. A professional synopsis, high-quality photos, a 360° tour, advice on any necessary renovations, credit checks on prospective buyers, property viewings, advice on the purchase contract and, above all, checking all the necessary documents are just a few of the most important services we at ADEN Immobilien offer every customer.

Estate agents in Berlin from 2021 onwards 

At ADEN Immobilien, we welcome these changes to the law. We have always acted as an intermediary between, or consultants for, buyers and sellers. The law reflects our business and our understanding of what estate agents in Berlin do.

We are happy to assist you in the sale of your property.

ADEN Immo GmbH
Brandenburgische Str. 32
10707 Berlin, Germany

Tel.: +49 (0)30 61 67 51 15
Email: 

Guaranteed performance!

 

Der Journalist Jean-Christophe Catalon erkundigte sich bei der ADEN Immo GmbH zum Thema “Berlin profitiert von dem Brexit aber will nicht London werden“. Sein Artikel erschien am 4. November 2016 in der französischen Tageszeitung “La Tribune”. Hier zeigt sich einmal mehr die Attraktivität des Immobilien-Investments in Berlin.

Der englische Immobilienmarkt erlebt einen Umsatzrückgang seit dem Brexit zugunsten anderer wachsender Städte wie Berlin. Seit dem Mauerfall versucht Deutschland sein wirtschaftlicher Rückstand zu wiederholen und es hat eine Aktion auf die Preise. Auch wenn sie noch erschwinglich sind, sie steigen ständig. Die Bundesregierung hat aufgrund der Preiserhöhung Vorkehrungen getroffen wie keine Sanierung mehr in bestimmten Viertel in Berlin, Mietpreisbremse und Airbnbsbeschränkung. Das Ziel ist zu verhindern, dass Berlin wie London wird, eine Stadt wo die Einwohner die Stadt verlassen um in den Vororte zu wohnen. Diese Erschwinglichkeit interessiert viel Ausländer, da „die Deutschen fangen jetzt an, über den Kauf nachzudenken.“. Es zieht die Kapitalanleger an, da „84% der Berliner Mieter sind“.

Link zum Artikel (auf Französisch) : http://www.latribune.fr/economie/union-europeenne/immobilier-berlin-beneficie-du-brexit-mais-ne-veut-pas-devenir-londres-613477.html

 

To support the shops in our area
you will receive from us 

500,- € * 

= 10 vouchers of 50 € each for selected shopsand restaurants in our neighbourhood. 

*This offer is valid for any successful property sale with an exclusive brokerage contract with ADEN Immobilien.
As of now and until 31.12.2020.
Cash payment is not possible.

office Charlottenburg:               office Friedrichshain:          
Giesebrechtstr. 16                     Grünberger Str. 50
10629 Berlin                             10245 Berlin
+49 30 – 220 66 11 77             +49 30 – 29 77 87 80

www.aden-immo.com

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Real estate experts in Berlin and Paris

ADEN IMMOBILIEN is an international team of experts focused on real estate in the German and French capitals.

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