Rental Law Amendment 2019: What changes for landlords?

Since the beginning of 2019, there has been a change in tenancy law that results in significantly altered conditions for landlords. These changes affect, for example, the possibilities of passing on costs for modernization to the rent.
They define new disclosure obligations for landlords towards potential new tenants and establish measures against so-called "renoviction," where modernization work serves only as a pretext. This article presents the various changes resulting from the current amendment to tenancy law.

How can landlords pass on modernization costs?

Landlords may pass on a portion of the costs for modernizing their residential property to tenants through a rent increase. However, the limits for this were tightened at the beginning of 2019. Before the new rent law amendment, landlords could permanently add a maximum of eleven percent of the modernization costs to the rent. Since the beginning of 2019, it has been only eight percent. In addition, there is now a so-called cap.

After modernization, the rent for each square meter of living space can only increase by a maximum of three euros/m² within six years. This applies to all cold rents that were at least seven euros/m² before modernization. If the rent per square meter was lower before modernization, the rent may increase by a maximum of two euros/m² within the six years. The legislator wants to prevent affordable housing from becoming too expensive for existing tenants due to modernization.

What is the future advantage for modernizing landlords?

What new obligations does the landlord have regarding information?

Due to the amendment to tenancy law, landlords have new information obligations toward prospective new tenants. These apply in the case of a newly demanded rent that, in regions with rent control, exceeds the maximum possible rent without an exception rule. Rent controls apply in cities with a tight housing market. There, when re-letting existing apartments, the rent is generally allowed to be a maximum of ten percent above the local comparative rent. An exception exists, for example, after modernization of the respective property. If a landlord demands a rent exceeding the rule upon re-letting in an area with rent control, the information obligations take effect. The landlord must then unsolicitedly state the amount of the previously paid rent to apartment seekers. They must additionally inform them that the new rent demanded by them exceeds the maximum ten percent increase associated with the rent control.

Round contact portraits of Katerina and Thomas Rogers side by side

Why might there be more frequent reprimands against landlords?

What measures can be taken against „gentrification”?

In the past, landlords have sometimes announced that they would comprehensively modernize their residential property in order to prompt tenants to terminate their leases. This practice is called „modernization-out“ (Herausmodernisieren). „Modernization-out“ is also spoken of when landlords plan a very high rent increase after a modernization or intend another very high financial burden for tenants. Following the rent price amendment, „modernization-out“ is interpreted as an administrative offense and can entail a fine of up to a maximum of 100,000 euros. Suspicion of impermissible modernization-out arises, for example, if a landlord announces extensive modernization work and does not begin it within a period of twelve months after the announcement.

Download as PDF

Print page

ZURÜCK ZU IMMOBILIEN NEWS

Katerina Rogers smiling at her desk with a laptop and notebook in a bright office

Would you like to know the value of your property? Free and without obligation.

Would you like to know the current value of your property? You've come to the right place for informed value assessments. Call us: 089 70065020.

Our property valuation for you:

A high-quality and comprehensive analysis of your property.
Well-founded real estate valuation including market analysis.
Ideal for owners, sellers, and buyers.

FOR EVALUATION

4.8 / 5.0

Here's how customers rate our work

Great professionalism and constant availability

Now that the sale of my apartment has been completely finalized, I would like to take this opportunity to thank you again for the excellent cooperation with your agency. The marketing of the property, especially the exposé you created, was of a high standard and presented the property optimally. Your agency was characterized by high efficiency, great professionalism, and constant availability. You advised me excellently throughout the entire sale and truly accompanied me until the final formalities. For these reasons, I can only wholeheartedly recommend your agency.

Dr. J. L.

Thanks to Mr. and Mrs. Rogers, we found our dream home :)
The care was, from the first second to the last, very, very friendly, professional, and accommodating. We couldn't have wished for a better collaboration and would like to thank you sincerely! :)

L. B.

We would like to thank Ms. Rogers and Mr. Rogers from the bottom of our hearts for their exceptional support as we searched for our new home. After more than three years of intensive searching and numerous meetings with various real estate agents, we have finally found a team that has impressed us not only with the highest level of professionalism, but also with their warmth and great dedication.

From the very first contact, we were guided through the entire purchasing process with great care, patience, and friendliness. Also worth mentioning is Ms. Kaufmann—a financing expert who was recommended to us by Ms. Rogers. The collaboration between Ms. Rogers, Mr. Rogers, and Ms. Kaufmann played a key role in ensuring that all the formalities went remarkably smoothly and without complications.

Communication was always open, honest, and warm, and the advice was professional and tailored precisely to our needs. Thanks to this support, we were able to make our dream of owning our own home a reality.

We wholeheartedly recommend Rogers Immobilien to anyone looking for real professionals with a human touch. Thank you again sincerely – we will remember you fondly!

M. G.

A fantastic and very honest real estate agency—Mr. and Mrs. Rogers were highly knowledgeable and provided us with the best possible advice and information at every step throughout the several-month process of purchasing an older home. 5 stars—that’s become a rarity in Munich!

P. W.

While searching for an apartment to rent in Munich, we eventually came across a property listed by Mr. and Mrs. Rogers. We have nothing but positive things to say about the entire process, from our initial contact all the way through to the handover of the apartment. Everything went very professionally and smoothly. Mrs. Rogers was always approachable and went out of her way to answer even the smallest questions as quickly as possible and to gather all the requested information. Mr. Rogers organized and conducted the apartment viewing and subsequent handover very carefully and conscientiously. All in all, we were extremely satisfied with our interactions with Mr. and Mrs. Rogers and can highly recommend them!

S.R.

Learn more about our customers' satisfaction HIER

Our Awards