Introduction
The rent cap (Mietpreisbremse) has been extended and now applies until the end of 2029. For landlords and property management companies, this means the familiar regulations remain relevant. This article summarizes the key points and provides practical guidance. As a rental management company in the Rhine-Main region, we support you in legally compliant implementation.
The Regulation at a Glance
Basic Principle
In areas with tight housing markets, the rent upon re-letting may not exceed ten percent above the local comparable rent (ortsuebliche Vergleichsmiete). Which areas are classified as tight is determined by the state governments through statutory ordinances. Key cities affected in Hesse include Frankfurt am Main, Darmstadt, and Wiesbaden.
Period of Validity
The original rent cap was time-limited. The Bundestag has now resolved to extend it until December 31, 2029. State ordinances that expire before this date can be extended accordingly.
Exceptions
The rent cap does not apply to:
Calculating the Permissible Rent
Local Comparable Rent
The basis is the local comparable rent (ortsuebliche Vergleichsmiete), as determined by the rent index (Mietspiegel) or expert appraisals. In cities with a qualified rent index, this is authoritative.
Ten Percent Surcharge
A maximum surcharge of ten percent may be added to the comparable rent. Example: If the comparable rent is EUR 10 per square meter, the re-letting rent may not exceed EUR 11.
Grandfathering Protection
If the previous rent was higher than the rent permissible under the rent cap, this rent may also be charged upon re-letting. However, the landlord must be able to prove the previous rent.
Landlord Obligations
Disclosure Obligation
Landlords must proactively disclose information before concluding the lease if they wish to invoke an exception to the rent cap -- for example, due to previous rent levels or modernization. If the disclosure is omitted, the exception cannot be claimed.
Tenant Complaint
Tenants can challenge an excessive rent and reclaim the difference. The reclaim is limited to the point in time of the complaint -- retroactive reimbursement for the period before the complaint is not possible.
Practical Guidance
Check the Rent Index
Before every re-letting, inform yourself about the current comparable rent. Use qualified rent indices where available.
Documentation
Carefully document the rental history and any modernization work carried out. This facilitates argumentation in case of inquiries.
Comply with Disclosure Obligations
Provide the required disclosures before the lease is concluded and in writing. Omissions can lead to the loss of exception grounds.
Lease Drafting
Draft lease agreements precisely. Unclear provisions can lead to disadvantages in the event of a dispute.
Conclusion
The extension of the rent cap to 2029 provides planning certainty -- for tenants and landlords alike. The regulations are complex but manageable. With professional rental management, careful preparation of re-lettings is more important than ever.
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*This article is for general information purposes and does not replace individual legal advice.*
