Rental Law Amendment 2019: What changes for landlords?

Answer:

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.

Answer:

In the future, it will be easier for landlords in some cases to calculate how much money they can pass on to rent due to modernization. If the modernization costs are a maximum of 10,000 euros per housing unit, they can take 70 percent of these costs as the basis for calculation in order to determine the permissible rent increase.

Answer:

Through the amendment to tenancy law, landlords have new information obligations towards potential new tenants. These apply when a new rent is demanded that is higher than the maximum legally permissible rent in regions with rent control, without any exceptions. Rent controls apply in cities with a tight housing market. There, for the re-rental of existing apartments, the rent may generally not exceed the local comparable rent by more than ten percent. An exception exists, for example, after modernization of the respective property.

If a landlord demands a rent exceeding the limit for a new rental in a rent-controlled area, information obligations apply. The landlord must then inform prospective tenants, unprompted, of the amount of rent previously paid. Additionally, they must inform them that the new rent they are demanding exceeds the maximum ten percent increase allowed by rent control.

Answer:

Since the amendment to rent control law, tenants have found it easier to object to what they consider to be excessive rents that violate the rules of rent caps. They can respond with a simple notice to their landlord, whereas previously a qualified notice was required. The qualified notice is more complicated and must justify why the requested rent is too high based on the local comparable rent. This is not necessary with a simple notice. This lowers the hurdle for tenants, which could lead to them issuing more frequent notices.

Answer:

In the past, landlords have sometimes announced extensive modernization of their residential properties to prompt tenants to terminate their leases. This practice is called „hustle-modernization.“ „Hustle-modernization“ is also spoken of when landlords plan a very high rent increase after modernization or plan other very high burdens for tenants.

„Gentrifying“ is interpreted as a regulatory offense after the rent price change and can result in a fine of up to a maximum of 100,000 euros. Suspicion of impermissible gentrifying exists, for example, if a landlord announces extensive modernization and does not begin with it within twelve months of the announcement.