Berlin passes precedent-setting law to crack down on illegally high rents

Members of the Berlin House of Representatives (Abgeordnetenhaus) have passed a law to introduce a city-wide rent register. The new system should make it easier for local authorities to identify and challenge cases in which landlords are charging illegally high rents.

Berlin passes new Mietenkataster law

Berlin will become the first federal state to have a centralised, digital rent register  (Mietenkataster) following a vote in the city senate on July 2.

According to the new law, landlords of more than 1,75 million flats in the capital will be required to log details of their rental properties in a database. Details will include, but are not limited to, the property address, size, number of rooms, information about the rental contract and cold rent amount.

Once the law is promulgated, which typically happens 14 days following a vote, landlords will have 12 months to submit this information to the register. Those who do not submit the information within this time face fines of up to 10.000 euros. Landlords who fail to provide information on multiple occasions face fines of up to 100.000 euros.

AI will find cases of rent exploitation

According to Germany’s nationwide rent brake law, landlords are not allowed to charge tenants more than 10 percent over the “local comparative rent” in areas with a “strained housing market”. This applies in all of Berlin’s 12 districts.

But the law has many loopholes, meaning landlords often charge illegally high rents with little concern that tenants will enforce their right to a rent reduction.

The new rent register should make it easier for local authorities to challenge landlords on tenants’ behalf and will use AI software to spot potential cases which authorities can investigate.

For a closer look at what is written in the new law, head to our explainer article New Berlin rent register will use AI to find rent exploitation cases and fine landlords.