Berlin case may set precedent for banning short-term, furnished lets

The Berlin neighbourhood of Neukölln has banned a landlord from renting out furnished apartments on short-term contracts. The decision may set a precedent for other district and city authorities.

Ban for Neukölln short-term let landlord

The district office (Bezirksamt) in Neukölln has banned a landlord from letting furnished apartments on short-term contracts. The landlord in question was renting out 14 “micro-apartments”, each with a maximum floor space of 11 square metres for 700 euros per month on temporary contracts lasting a maximum of one year.

Back in May, authorities in the southeastern district announced plans to ban short-term, furnished properties in certain “milieu protection areas” (Milieuschutzgebiete), to protect existing tenants from extreme rent hikes and curb gentrification. The 14 “micro-apartments” are located in the protected area around Flughafenstraße and Donaustraße.

The landlord has now appealed the case. According to a press release and report by rbb, the responsible city councillor expects the case to end up in the administrative court. If the ban is upheld, it may set a precedent for other districts to ban short-term lets in all milieu protection areas, of which there are over 70 across Berlin.

“This intervention sends a clear signal against exploitative subletting that undermines affordable housing,” Greens local councillor Jochen Biedermann told the public broadcaster.

Short-term lets exploit rent brake loophole

While Germany has a rent brake law which limits the amount which landlords can charge tenants, certain rental contracts are not covered by the law, allowing cases like the one in Neukölln.

For example, alongside temporary and short-term rentals, housing units which were rented for the first time after October 1, 2014, are not covered. With many “micro-apartments” or “co-living spaces” found in newbuilds, even if tenants had longer-term contracts, many would not be protected by the rent brake.

Even in cases when tenants are protected by the rent brake, many do not enforce their rights for fear of eviction or simply because they do not know they are protected. In recent months, Berlin has taken further steps to make tenants aware of their rights.

In March 2025, the Senate for City Development, Building and Living (SenStadt) announced it would launch a hotline which tenants can call to find out whether they are paying illegally high rent and how to challenge their landlord.

In the second quarter of 2025, 93 of the 95 rental contracts assessed by the rent assessment office were found to be demanding illegally high rent from tenants.