Rental price control

from Wikipedia, the free encyclopedia
(Forwarded from rental price brake )

A fixed rental price (also rent freeze or rent freeze ) is a mostly state setting of rental prices through legally standardized maximum prices or a prohibition or restriction of rent increases within the framework of residential rental agreements .

Germany

history

1922-1945

After the before which World War prevailing in many cities housing had tightened considerably after the war in 1918, which was in Germany in 1922 Reich Rent Act introduced whereby a free agreement between the rent was initially possible, but unilaterally on the so-called statutory rent reduction could be. This related to the rent as of July 1, 1914, the so-called peace rent , and could only be increased by flat-rate surcharges decreed by the state authorities. In order to cover maintenance and repair costs and in view of the inflation from 1914 to 1923 , this surcharge system became confusing, but ultimately the rents lagged behind the price development for other basic needs and were only raised to the pre-war level and above after the end of inflation. In the implementation and review of the rental price regulations, the tenants 'and landlords' equal representation played a major role. In 1931 the statutory rent was reduced by an emergency ordinance. On October 17, 1936, the National Socialists imposed a rent freeze and further rent authorities were set up. After the end of National Socialist rule, this regulation initially continued to apply in both parts of Germany, which is why home ownership was often considered "unprofitable" as early as the 1950s, as the costs for maintenance, repairs and administration continued to rise every year. The monthly rents for apartments in old buildings were sometimes less than one mark per square meter.

1945–1990 (Federal Republic of Germany)

Therefore, in West Germany after the were already in the 1950 currency reform of 1948 rental apartments exempt from rent stop to promote housing construction, and the Bundestag finally adopted May 24, 1960 against the votes of the SPD that the then Minister of Housing Lücke initiated Law on the dismantling of the compulsory housing economy and on social tenancy and housing law , according to which from August 1, 1963, landlords in West Germany were immediately allowed to increase their rent claims "appropriately" up to a maximum rate of 25 percent and from 1964 there were no upper limits at all for old building rents gave more.

1945–1988 (West Berlin)

In West Berlin , unlike in West Germany, fixed rental prices continued to apply until 1988 and was then abolished by the West Berlin Senate after more than 70 years.

1945–1990 (GDR)

In the GDR , the rent freeze that had been in effect since 1936 was extended first in 1946 by the Soviet military administration in Germany and later by the GDR government and continued to apply until reunification . According to the Institute of German Economy (IW) , neither modernizations nor repairs could be financed from the current rental income, so that the housing stock increasingly fell into disrepair and many old apartments in the GDR inner cities were hardly habitable. Over the years, private homeowners who had not been expropriated therefore often gave away their real estate to the state, whose competent housing offices allocated the scarce living space according to defined criteria and sometimes after years of waiting . Had housing allocation open.

Unification after 1990

After 1990, the fixed rental price was also gradually lifted in the new federal states; the Rent Transfer Act (MÜG) (Federal Law Gazette I, p. 748) announced on June 10, 1995, standardized the provisions on rental prices with effect from January 1, 1998 throughout Germany. The setting of the rent was only limited nationwide by white collar crime law until 2015. This introduces the concept of excessive rent in accordance with Section 5 of the Economic Criminal Law (WiStG 1954). It constitutes an administrative offense. The demand for rent as a result of taking advantage of a low offer in an amount of more than twenty percent above the local rent is punishable by a fine of up to fifty thousand euros (current version). In addition, there are the regulations for punishing usury , also in white-collar crime. In accordance with Section 558 of the German Civil Code (BGB), rent increases in current rental contracts could and can - unless otherwise agreed - only be requested up to a maximum of the local comparative rent .

Social housing

Social housing was a social achievement of the 1920s. For more than 70 years, the concept of affordable living space for low-wage earners has provided. From 1988 onwards, social housing construction lost a lot of its importance due to extensive privatization and the simultaneous withdrawal of the state from subsidies. While there were 3.9 million social housing units in 1987, at the end of 2001 there were only around 1.8 million housing units. Every year around 100,000 more apartments lose their social housing status. As a result, fixed rental prices apply to fewer and fewer apartments. The basis is the law on social housing subsidies. In such cases, renting is only possible for tenants with a residence permit and the landlords are only allowed to demand the so-called cost rent .

Tenancy Law Amendment Act (2013)

On May 1, 2013, the Tenancy Law Amendment Act came into force. If the previous rent is significantly below the local rent, the landlord may not increase the rent as much in the future as before in particularly sought-after areas in large or university cities. For certain areas, the federal states can stipulate that the rent may only be increased by a maximum of 15% within three years instead of the previous 20%.

Rent brake (2015)

With the tenancy law amendment law (MietNovG) passed on March 5, 2015 with the votes of the grand coalition ( CDU , CSU and SPD ) and with the abstention of the opposition by the Bundestag, the regulations known colloquially as the rent brake on the "agreements on the rent level at the beginning of rent in Areas with tight housing markets ”. Sections 556d ff. BGB made it possible for the first time again by law for the federal states to limit the rent required for new leases of existing apartments by ordinance for all landlords .

Legal construction at the federal level

Section 556d (2) of the German Civil Code authorizes the federal states to issue a statutory ordinance. This ordinance allows areas to be designated as areas with a tight housing market for a maximum of five years. Areas with tense housing markets exist if the sufficient supply of rental apartments in a municipality or part of the municipality under appropriate conditions is particularly at risk (Section 556d (2) sentence 2 BGB). This risk can exist in particular if one of the criteria of numbers 1 to 4 of § 556d paragraph 2 sentence 3 BGB is met by an area. However, the federal states can also define their own criteria, since sentence 3 only speaks of “in particular” and is therefore not conclusive.

In a so-called “tight housing market”, the rent demanded may be a maximum of 10% above the local comparative rent ( Section 556d Paragraph 1 BGB). In order to determine the comparative rent customary in the location , the legal justification must be based on the catalog of Section 558a (2) of the German Civil Code (BGB). The maximum rent permitted under Section 556d (1) BGB may be exceeded in three exceptional cases.

  • Section 556e (1) of the German Civil Code (BGB) stipulates that the pre-rent may be demanded if this in turn permissibly exceeds the maximum allowable rent. The pre-rent is the rent that the previous tenant most recently owed, whereby rent increases agreed within one year before the end of the tenancy and rent reductions are not taken into account.
  • § 556e paragraph 2 BGB determined that the after § 556d paragraph 1 BGB maximum allowable rent according to § 556d para. 1 BGB may be exceeded by the amount charged at a modernization Mieterhöhung according to §§ 559, 559a BGB to the respective flat. However, this only applies if the modernization within the meaning of Section 555b of the German Civil Code (BGB) was carried out in the last three years before the start of the tenancy.
  • Section 556f of the German Civil Code ( BGB) stipulates that the regulations on the rent brake do not apply to apartments that are used and rented for the first time after October 1, 2014, and to comprehensively modernized apartments. The rent brake is permanently not applicable to apartments that fall under this exception.

The regulations on the rental price brake do not oblige the landlord in advance to only demand the maximum allowable rent. However, § 556g (2) BGB gives the tenant the right to demand the rent that has been demanded too much by the landlord and overpaid by the tenant. The prerequisite for this is that the tenant has reprimanded the landlord. With the complaint, the tenant must indicate to the landlord that he considers the rent to be excessive and explain the circumstances from which these doubts arise. Only the rents paid after the time of the complaint are covered by the claim for reimbursement.

Legal construction at state level

According to Art. 4 MietNovG, the law mainly came into force on June 1, 2015. Since April 28, 2015, the state governments have been authorized according to Section 556d (2) of the German Civil Code (BGB) to determine areas with strained housing markets by ordinance for a maximum of five years. The time limit is intended to ensure that the rent brake is only a temporary instrument and is only intended to serve as a flanking measure for housing policy measures in the federal states in order to intercept market developments until the social housing measures in the federal states take effect. The statutory ordinance issued by the federal states must, however, differ from other statutory ordinances, be justified by the state government in order to be effective ( Section 556d Paragraph 2 Sentences 5 to 7 BGB).

According to Section 1 of the Rent Limitation Ordinance with effect from June 1, 2015, Berlin is a municipality with a tight housing market, in which the adequate supply of the population with rental apartments on reasonable conditions is particularly at risk. Such ordinances have been issued by the state governments of Baden-Württemberg, Bavaria, Brandenburg, Bremen, Hamburg, Hesse, Mecklenburg-Western Pomerania, Lower Saxony, North Rhine-Westphalia, Rhineland-Palatinate, Schleswig-Holstein and Thuringia. In Baden-Württemberg, the rental price limitation regulation applies in 68 municipalities, in Bavaria in 137 municipalities, in Brandenburg in 31 municipalities, in Bremen for the urban area of ​​Bremen with the exception of Bremerhaven, in Hamburg for the entire urban area, in Hesse for 16 municipalities, in Mecklenburg-Western Pomerania for Greifswald and Rostock, in Lower Saxony for 12 municipalities, in North Rhine-Westphalia for 22 municipalities, in Rhineland-Palatinate for the municipalities of Landau, Mainz and Trier, in Schleswig-Holstein for 12 municipalities and in Thuringia for the municipalities of Erfurt and Jena.

The federal states of Saxony and Saxony-Anhalt as well as Saarland have so far waived the issue of a corresponding statutory order.

However, the ordinances of the states of Baden-Württemberg, Bavaria, Brandenburg, Hamburg (2015) and Hesse were declared ineffective by local or regional courts because the state governments had not or only insufficiently fulfilled the obligation to state reasons, or because a justification existed however, it was not published. Lawsuits from tenants to obtain financial compensation from the responsible federal states failed in two federal states.

Effectiveness of the instrument

Development of the turnover achieved in Berlin through real estate transactions in absolute figures compared to its share in Germany-wide turnover.

The rent brake has so far shown little effect. The reason for this is inter alia. stated that the tenants do not exercise the rights granted to them by the Tenancy Law Amendment Act. Apartment rents therefore continue to rise in many cities. Therefore, there is already a Federal Council initiative to improve the existing law.

In Berlin, from 2007 to 2013, the turnover achieved through real estate transactions in absolute figures and its share in the nationwide turnover developed parallel to each other. In the first year after Berlin applied the options from the Tenancy Law Amendment Act, this changed: While absolute sales continued to rise up to 2015, as in previous years, the proportion of nationwide sales fell. From 2015, when the rental price brake was introduced, absolute sales also fell.

Legality of the rental price brake

The 67th Civil Chamber of the Berlin Regional Court had doubts about the constitutionality of the rent brake. Accordingly, the Chamber has submitted two pending appeal proceedings to the Federal Constitutional Court in accordance with Article 100.1 of the Basic Law to decide on the constitutionality .

In another matter, the Federal Constitutional Court ruled in July 2019 that the rent brake does not violate the Basic Law. In the proceedings, a landlord's constitutional complaint was not accepted for decision.

Rent brake (2019)

The Tenancy Law Adjustment Act (MietAnpG), which provides for a modification of the regulations on the rental price brake, stipulates an obligation of the landlord to provide information in the newly introduced § 556g paragraph 1a BGB if he makes use of an exception regulation according to §§ 556e, 556f BGB. If the landlord does not comply with his obligation to provide information, he cannot invoke the exception regulation that allows him to demand more than the basic regulation of § 556d paragraph 1 BGB (local comparative rent plus 10%). If, on the other hand, the landlord has obtained the necessary information independently and in the required form, he can only invoke the exceptional circumstances two years after the information has been properly obtained. However, there is an exception to the rent brake for new buildings. In the case of newly built apartments, the owner can set the rent without any restrictions. This is to prevent investors from losing interest in building new living space.

The MietAnpG was passed on November 29, 2018 by the Bundestag and came into force on January 1, 2019. CDU / CSU and SPD voted for the bill, AfD and FDP rejected it, Die Linke and Bündnis 90 / Die Grünen abstained.

Rent brake (2020)

The law to extend and improve the regulations on the permissible rent level at the beginning of the rental came into force on April 1st , 2020 and represents a tightening of the rental price brake. With the passed law, the rental price brake was extended until 2025 and tenants can in future have overpaid rent retrospectively claim.

“Rent cover” in Berlin

"Mietendeckel" is the slang term for the law planned by the Berlin Senate to revise legal regulations on rent limits (MietWoG Bln). The law initiated by the red-red-green coalition is intended to enable the public-law limitation of residential rents. The main regulations include a rent freeze, rent caps, rent reductions and the limitation of the modernization levy . The law should not apply to certain living spaces, in particular not to living space that was ready for occupancy for the first time from January 1, 2014 (new building) or that was publicly funded. The law should be limited to five years.

Legal policy

In October 2019, the responsible minister, Christine Lambrecht, presented key points on her agenda. Thereafter, the rent brake for new rentals is to be extended and tightened by five years. In future, it should be possible to reclaim excess rent retrospectively for 30 months.

"Rent stop" in Bavaria

The referendum “# 6 years rent freeze” was launched in Bavaria . The aim is to prevent any rent increase for 6 years, also for index and graduated rents. The law is to apply to 162 Bavarian cities and municipalities in which rental prices are rising at an above-average rate. The collection of signatures for the approval of the referendum started at the beginning of October 2019 and ran until the end of the year. At least 25,000 signatures are required for this. On July 16, 2020, the Constitutional Court in Bavaria rejected the referendum. This was justified with the competence of the federal government for tenancy law.

Portugal

In 1947, António de Oliveira Salazar ordered a rent stop for the major cities of Lisbon and Porto , which remained in effect for over 40 years and ensured that some old-style apartments had to be paid less than the equivalent of five euros a month at the end of the 1980s. After the end of the rent freeze, rent increases were limited to compensating for inflation until 2006, so rents remained very low. Many homeowners therefore let their old town apartments fall into disrepair because they lacked the money for renovations. Basic sanitary facilities with shower and toilet were missing in many buildings. In the city center of Lisbon, around 20 houses collapsed every year due to the poor condition at the end of the 1990s.

United States

In the United States, a general rental freeze was temporarily introduced during World War II . After 1945 individual cities took over the regulation. In some parts of the city in the US state of New York there is still a fixed rental price, in New York City also in the context of social housing , which is gradually being phased out. The current program, known as Rent Regulation , has been running since 1943 and only applies to buildings built before 1947 with at least six tenants if a tenant has been living there continuously since July 1, 1971 at the latest. After moving out, rules apply to the maximum possible rent increase. According to a study in New York under rent control, childless singles and couples lived 15.6 percent of the time in larger apartments than similarly wealthy families with children, without rent control only ten percent of the cases, which is seen as an argument in favor of the program leads to "waste" due to reduced market control. To date, San Francisco and Cambridge (Massachusetts) also have city ​​guidelines on how much rent can be paid.

Other countries

The principle of fixed rental prices exists or has also existed in other countries, including France , Egypt , Spain and Vietnam .

criticism

The effectiveness of the rental price control is often questioned. The Swedish economist Assar Lindbeck , an expert on tenancy law, said “ Rent control appears to be the most efficient technique presently known to destroy a city - except for bombing ” destroy - with the exception of their bombing. ")

In order to get the tense rental price situation under control, the state must also curb speculation by real estate investors. The state can implement this through environmental protection or an explicit right of first refusal.

See also

literature

  • Karl Christian Führer: Tenants, Home Owners, State and Housing Market. Housing shortage and forced housing economy in Germany 1914–1960. Quarterly journal for social and economic history, supplement 119, Stuttgart 1995.
  • Constanze Paffrath: Power and Property. The expropriations 1945–1949 in the process of German reunification. Böhlau, Cologne et al. 2004, ISBN 3-412-18103-X (At the same time: Duisburg, Univ., Diss .: The “exclusion of restitution” in the process of reunification. ).
  • Siegfried Wenzel: What was the GDR worth? And where has this value gone? Attempt a final balance sheet. Das Neue Berlin, Berlin 2009, ISBN 978-3-360-00940-1 .
  • Christoph Eisenring: Rotten old towns, desolate new buildings: the "tenants' paradise" GDR is a myth. About rent control and state housing allocation. Neue Zürcher Zeitung, September 28, 2019.
  • Ines Kristine Johnen: The development of the Tenancy Law Adjustment Act - The draft development from the rejected 2nd MietNovG-E via BT-Drs. 19/4672 to the MietAnpG. Dr. Kovač, Hamburg 2020, ISBN 978-3-339-11426-6 (print).

Individual evidence

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  23. § 1 MiSchuV BY (ordinance defining the scope of federal tenant protection regulations).
  24. § 1 MietbegrenzV Brandenburg (ordinance on the determination of the areas with rent limitation).
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