89% of tenants in Germany back tougher rent-gouging penalties

A new survey has found that 89 percent of tenants in major German cities support tougher sanctions on landlords who charge exploitative rents, also known as “rent-gouging”.

Overwhelming support for crackdown on exploitative rents

A new survey of 1.014 tenants living in German cities with a population of over 100.000 people has found that a whopping 89 percent of tenants support tougher punishments for rent-gouging landlords.

The nationwide German rent brake and local rent indexes set the maximum amount landlords can legally charge tenants. Landlords cannot charge more than 10 percent over the local comparative rent, and those charging 50 percent or more over the limit are classified as rent gouging.

Landlords charging 20 percent over the limit face fines of up to 50.000 euros and those charging 50 percent over may be committing a criminal offence and can face prison time. But many landlords overcharge more without consequence. 

This happens because tenants don't know there is a legal limit or don't enforce their right to reduced rent for fear of eviction for personal use (Eigenbedarfskündigung). 75 percent of respondents said the existing rent brake law should be updated so it is more effective.

65 percent support a rent cap

Interestingly, tenants who are happy with the amount they pay are also broadly supportive of tougher punishments for rent gouging. 64 percent said they pay reasonable rent, but were still in support of stricter punishments. 65 percent said they support introducing a rent cap.

The survey, conducted by FORSA on behalf of the German Tenants’ Association (DMB) and the German Trade Union Confederation (DGB), also asked respondents how the affordable housing crisis affected their employment. 

Every eighth respondent said they declined an employment opportunity because of high rental costs in the area where the job was located. Meanwhile, 59 percent said they believed high living costs may lead local authorities and businesses to struggle to find employees.

In response, the DGB and DMB called on the CDU/CSU-SPD government to update rent indexes and laws on rent exploitation, better implement the rent brake law, introduce a nationwide rent cap and crack down on holiday rentals.

Alongside these measures: clearer rules for when landlords can claim eviction for personal use, and doubling the number of social housing units built between now and 2035 to two million.