Property owners’ association Haus & Grund is cautioning against fines for landlords who fail to adhere to Germany’s rent control law, arguing that the consideration of such sanctions by the federal government sends a detrimental signal.
Kai Warnecke, President of Haus & Grund, told “Der Spiegel” that a tightening of the rent control measures through additional fines “won’t improve the situation” but will instead exacerbate challenges in already strained housing markets. He stated that such sanctions would increase bureaucratic burdens and create legal risks, ultimately discouraging investment in new construction.
The Rental Rights Commission (Mietrechtskommission), composed of representatives from tenants and landlords, as well as scientific experts, will begin its work next Tuesday. Under the leadership of Federal Justice Minister Stefanie Hubig (SPD), the commission’s remit includes proposing a penalty system for violations of the rent control law, which limits rent increases on new leases.
In regions experiencing high housing demand, the initial rental price must not exceed the local comparable rent by more than ten percent. Tenants have the right to reclaim excessive rent payments. Currently, landlords face no direct consequences for non-compliance. The commission is expected to present its proposals by the end of 2026.
