New rent laws for Munich

Sun 19th May, 2013

A new law regulating tenant rates comes into effect today.

The law will lower the rent ceiling, which will be welcome news to many of Munich's residents who pay some of the highest rents in the country. The law will set the rate of rent increases to a maximum of 15 percent in 3 years. Previously the rate was at 20%. 

The new law has been criticised by the German Tenants Association, however. They point out that the rent ceilings do not apply to new leases, only ones that are currently existing.

"The new laws are complicated, prone to dispute, and partially redundant," says director Luke Siebenkotten.

Rising rents have been a serious problem in Munich over the last decade. As Germany's population falls Munich is one of the few cities that have kept on growing. The result of the huge immigration to the city has been that there is not enough property to go around, which has allowed prices to skyrocket.

Nonetheless, the Free Democrat party have met the new bill with apprehension, stating that government rent regulation should be kept as low as possible.


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