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!
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
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 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
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.
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.
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
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
According to FOCUS, ADEN Immo GmbH is one of the best real estate agents in Germany.
The “Germany’s TOP Real Estate Agent” award from the news magazine FOCUS is the largest independent real estate agent rating in Germany and is based on recommendations from colleagues.
The 1,000 top real estate agents in Germany were selected in cooperation with the market research institute Statista GmbH. Around 17,000 estate agents from ImmobilienScout24 and the Immobilienverband Deutschland IVD took part in the online survey.
On 30 January 2020, the Berlin House of Representatives [Abgeordnetenhaus] adopted the so-called “rent limit”. Now that the law has been adopted, it is expected to enter into force on 23 February 2020. Although the constitutional court [Verfassungsgericht] is expected to handle the law, all those affected must now comply and get to grips with the new regulations.
In particular, this applies for the new information obligation, which states that landlords must give tenants information on the relevant circumstances taken into account when calculating the upper rent limit, without being requested to do so, within two months of the law entering into force and before concluding any new tenancy agreements. Landlords also have to check whether the rent they charge is permitted. If a rent increase is made after 18 June 2019 (the effective date), the rent payment must be adjusted to correspond to the level on the effective date. Nine months after the law has entered into force, the second stage of the new law will take effect too. For existing tenancy agreements, this means maximum rents (upper limit + 20% +/- location premium/discount), which could also be below the rent on the effective date. Landlords have to check whether the rents paid have to be adjusted in this way.
If you have any questions about the rent limit and the effects on the Berlin property market, we would be happy to help.
ADEN Immo GmbH has won the European Property Award in the category of Real Estate Agency Website for Germany.
The European Property Award 2019-20 is the most acclaimed industry award throughout the region. This is an achievement which is recognised as a mark of excellence for property professionals.
The European Property Awards are the largest, most prestigious, and widely recognised programme throughout the regions.
These are judged by an independent panel of over 80 industry experts. Judging focuses on design, quality, service, innovation, originality, and commitment to sustainability.
The Awards are in their 26th year and cover over 45 different residential and commercial categories. Regional heats are staged for Arabia, Europe, Africa, Canada, Central & South America, the Caribbean, USA, UK and Asia Pacific. These will be celebrated at gala presentation events in Bangkok, London and Toronto during the course of the year.
Celebrate Beaujolais Nouveau 2019 on November 21st with us and the French Community from Berlin!
Wine, a French buffet, live jazz music, the lottery of French products and other surprises await you.
Spend a wonderful evening with us, get your tickets quickly – the number of guests is limited to 300!
Benefit from the special price of 16,- € instead of 19,- € until 30.10.2019.
Thursday, 21st November 2019, 18:00
Centre Français de Berlin, Müllerstraße 74, 13349 Berlin
We are pleased to announce that we will be present for the fifth time at Expo Real in Munich from 7 to 9 October.
Expo Real is Europe’s largest real estate trade fair, with more than 45,000 visitors and 2000 exhibitors in 2018.
You can find us at Club France, Hall C2 – Stand 214. Looking forward to meeting you!