Rent cap (Mietpreisbremse)

The rent brake (Mietpreisbremse) in Germany limits the rent for new lettings to a maximum of 10% above the local comparative rent (§556d BGB).

Where does it apply?

• In over 400 municipalities with a "tight housing market"
• Determined by state regulation
• Applies in all major cities: Berlin, Munich, Hamburg, Cologne, Frankfurt etc.

Exceptions (no protection):

• New builds: flats first used after 01.10.2014
• Comprehensive modernisation: investment of at least 1/3 of the cost of a new build
• Previous rent: if the previous tenant already paid more

How to use the rent brake:

• Check the rent index: what's the local comparative rent for your flat?
• File a complaint: you have to complain about the excess to the landlord in writing
• Rent overpaid: can be reclaimed from the date of the complaint
• Tenants' association: helps you enforce it (€50–100/year membership)

Criticism: many landlords ignore the brake. Studies show that it has only dampened rent increases by 2–4% – much less than hoped.