Landlord Accepts Proposed Rent Amount
SPD Justice Minister Stefanie Hubig has conceded on expanding the rent brake, opting instead for its extension, as she prepares to present a bill to the cabinet on Wednesday. The concession comes amid ongoing negotiations with the Union, where efforts to expand the regulation to buildings constructed between 2014 and 2019 were unsuccessful.
According to the draft bill, due to be presented to the cabinet, the cut-off date regulation for new buildings remains unchanged at 2014. Hubig, however, expressed her hope that the coalition factions would revisit the issue.
"The extension of the rent brake is now urgently necessary," said Hubig, highlighting the potential rise in unchecked rents from next year if the brake was allowed to expire at the end of 2021. She has submitted the law for extension as rapidly as possible, she added.
Initially, her proposal had called for buildings constructed from 2014 to 2019 to be included in the rent brake legislation. However, this was not part of the coalition agreement, which precludes the rent brake's application to apartments first occupied and rented out after October 1, 2014.
Hubig indicated that the Union and SPD are planning additional measures to safeguard tenants. Greater transparency in ancillary costs, stricter rules for index rent contracts, and enhanced protection for furnished apartments are among the proposed measures.
"It cannot be that a landlord thinks they can charge significantly higher prices for a furnished apartment simply by adding a few chairs," said Hubig, reiterating the coalition's commitment to tenant protection. More details on these measures will follow shortly after the extension of the rent brake, she announced.
The SPD Justice Minister Stefanie Hubig plans to present a bill to the cabinet on Wednesday, proposing an extension of the rent brake, despite failed attempts to expand its regulation to buildings constructed between 2014 and 2019. Hubig emphasized the need for this extension as a means to prevent an increase in unchecked rents from next year if the brake was allowed to expire. Additionally, Hubig and the Union are reportedly considering implementing further measures to protect tenants, such as greater transparency in ancillary costs, stricter rules for index rent contracts, and enhanced protection for furnished apartments.
