The rent brake (Mietpreisbremse) limits the rent that landlords can charge when letting a flat in an area with a tight housing market. It was introduced in 2015 and has been extended until the end of 2029. The federal states decide which cities and districts it applies to.
For expats moving into a new flat in Berlin, Munich, Hamburg, Frankfurt or other large cities, it is often relevant, and many do not know about it.
How It Works
- Local comparative rent. Usually taken from the local rent index (Mietspiegel) for comparable flats.
- Maximum rent. Comparative rent plus ten percent.
- Comparison. If your agreed net rent is higher, the excess is not owed.
Example. The rent index shows €12 per square metre for your flat. The maximum is €13.20. If you pay €16, you pay €2.80 per square metre too much.
Exceptions
The rent brake does not apply, or only partly, if:
- New building. The flat was first used and let after 1 October 2014.
- Comprehensive modernisation. The first letting after a modernisation that makes the flat comparable to a new building.
- Previous rent. The previous tenant already paid more. The landlord can then keep that rent, but not increase it further.
- Modernisation in the last three years. The landlord can add a modernisation surcharge.
The landlord must inform you about these exceptions in writing before you sign. Otherwise, it cannot rely on them for the time being.
Furnished and Temporary Flats
The rent brake also applies to furnished flats. A surcharge for furniture is allowed, but it must be reasonable. Many furnished flats for expats are priced well above what is allowed.
Flats let only for temporary use for a specific purpose are exempt, but this exception is interpreted narrowly.
How to Reclaim Excess Rent
- Check the rent index for your flat.
- Complain to the landlord in writing (Rüge), stating why the rent is too high.
- Reclaim the excess rent paid from the time of your complaint. If you complain within 30 months of the start of the lease and the lease is still running, you can reclaim from the start.
You can also ask the landlord for information about the previous rent and modernisation. Tenants' associations and specialised services help with checking and enforcing claims.
Frequently Asked Questions
Can my landlord terminate my lease if I complain?
No. A termination because you exercised your rights would be invalid.
Does the rent brake apply to my existing lease?
Only to the rent agreed at the start of the lease. Later increases follow the rules for rent increases. See rent increases.
Does the rent brake apply in my city?
Check your federal state's regulation. Most large cities are included.
