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