The so-called "brake" is expected to be effective as of June 1, 2015. The core message of the law amendment is: In the case of newly concluded rental agreements, rent may not exceed ten percent of the local comparative rent in areas with a shortage of housing. The federal states determine the areas in which a tight housing market exists for up to five years.

However, the new regulation does not mean that you as a landlord must not fall below the rent you have earned so far in the case of a new tenancy. When re-letting an apartment, you may take as a basis a rent that was agreed in the previous tenancy agreement as a basis for the new tenancy agreement. You do not have to offer a vacant apartment below the previous rent. The following exceptions apply:

You can agree the rent freely for new contracts after a comprehensive modernization – also far above the local level. Comprehensive modernisation should be achieved when the investment for this purpose reaches about one third of the expenditure for a comparable new built apartment.

New buildings are also exempt from the regulation. Newly built apartments are considered to be new buildings that will be used and rented for the first time as of October 1st., 2014.

Follow...

... and stay tuned.

Contact

You can always reach SEPTIMA by email. We’re eager to hear from you, read all of your correspondence, and try to respond quickly.

Connect

If you’re feeling social, you can follow SEPTIMA on twitter and FB or Google Plus. We use social media to connect with customers and users, link to our latest articles and products and point you to news and resources from around the Web. 

A last piece of information

We are often on the road, but always reachable. Our offices are in Leipzig and Naumburg. Our mailing addresses are Pfaffendorfer Str. 18, 04105 Leipzig, and Friedensstr. 13, 06618 Naumburg, Germany. Emailing us is faster, though.

You will be interested in

You might also be interested in

We`ll organize it!