By Brankica Jelić and Dejan Živković
In June 2024, Brankica Jelić and Dejan Žvković, participants in the joint DASH program, stayed in Germany, during which period they actively researched the rental sector from the perspective of the resident population, with a special focus on beneficiaries from the refugee and immigrant population. Through several conversations with the administrative staff in the province of Baden-Baden (Fillingen and Schweningen) as well as with the beneficiaries of the program, they obtained key information about this sector.
Credits for images: Brankica Jelić and Dejan Živković
Through interviews with the local municipality, in particular with departments dealing with rental housing, they learned that rent in Germany is primarily regulated by the Mietpreisbremse, or “rental price brake”, which is a law that aims to limit the amount by which landlords can increase rents in particular in areas with tight housing markets. The law came into force in 2015 and is applied in cities and regions across Germany to protect tenants from rapidly rising rental prices. According to the Mietpreisbremse, landlords are generally not allowed to charge rents that exceed a certain threshold set by the local authority. This threshold is usually based on the local average rental price, and landlords cannot charge more than 10% above this benchmark. However, the Mietpreisbremse has faced criticism due to its ineffective enforcement in some areas, and there are calls for stronger regulations to further protect tenants from excessive rent increases.
Overall, the private rental sector in Germany constitutes a significant part of the housing market, where many people rent their homes. Rent regulation is a topic of ongoing debate and discussion as policy makers seek to balance the interests of tenants and landlords.
The regulation typically applies to new leases in areas with a tight housing market where there is a shortage of affordable housing. Landlords are limited in how much they can raise the rent for a new tenant compared to the previous tenant. The amount of the increase is limited to a certain percentage determined by the local authorities. This regulation aims to prevent landlords from significantly increasing rents between tenants and to provide greater stability for tenants.
It’s important to note that rent control laws vary by state in Germany, with some cities having stricter regulations than others. In addition, there are exceptions to rent control laws, such as new construction or extensive renovations, which may allow landlords to charge higher rents. Overall, rent regulation in the private rental sector in Germany is designed to balance the interests of landlords and tenants and provide affordable housing options for residents in areas of high demand.
The hosts in Tübingen were Axel Burkhardt (Commissioner for housing and accessibility) and Julia Hartmann (Commissioner for housing and accessibility), with whom we exchanged practical experiences in the field of affordable housing.
A visit to the so-called “French Quarter” in Tübingen left a special impression. Here you can see practical examples of the remnants of the past that are intertwined with housing ideas for the future. During World War II, this picturesque part of Tübingen was under the occupation of the French army, which remained there after the end of the war, until the end of the 90s (hence the name of this district). The idea is to expand space for economic activity through a series of independent, predominantly family-oriented shops. The housing is designed so that small, modest shops are located on the ground floor of multi-family buildings where the owners of these shops live. The mixture of languages and cultural heritage is evident, and members of all nations can meet in local shops and restaurants in a pleasant and good-neighborly atmosphere. Small children are taken care of in local kindergartens, while students are given access to accommodation through more favorable rental options, as well as access to various offers that encourage creativity at minimal costs. The basic idea is: a simple and affordable life for members of the entire community.
