He overcharged the rent and regretted it. The amount of the fine is staggering
The Berlin office fined an apartment owner for charging too much rent. The former tenant can also recover thousands of euros in overpayment.
Germany once again shows how restrictive it is towards the apartment rental market. Berlin media recently described the case of an apartment owner who was fined more than PLN 26,000. euros for charging too high a rent. The case was analyzed by experts from the RynekPierwotny.pl website.
A record fine and a refund for the tenant
The case concerns an apartment with an area of 38 square meters located in the Friedrichshain district of Berlin. According to local officials, the landlord charged rent by as much as 190 percent. higher than the reference rates resulting from the so-called “rent mirror” (Mietspiegel).
The administrative fine imposed exceeded PLN 26,000. euro, but this is not the end of the consequences. The former tenant of the apartment can additionally recover approximately PLN 22,000. euros of overpaid rent.
– Before imposing the record fine, the Berlin office found that the rent charged for the apartment had been exceeded by as much as 190%. relative to the local rate from the so-called rent mirror (Mietspiegel) – explains Andrzej Prajsnar, expert of the RynekPierwotny.pl portal.
In his opinion, publicizing the case was intended to be a clear warning signal to apartment owners trying to raise rental rates as much as possible.
Germany has been controlling rents for years
Experts from the RynekPierwotny.pl portal point out that Germany has long been one of the countries that interfered most in the rental market.
– It is worth knowing that the OECD assesses German rent restrictions as one of the most restrictive among the member states of this organization – next to the regulations from Sweden – notes Andrzej Prajsnar.
However, there are many opinions that such strong rent control may also have negative effects. Some economists point out, among others: to the growing gentrification of housing estates and the greater number of expensive housing investments exempt from regulation.
How do German regulations work?
German rent regulations are among the strictest in Europe. Many leases have a rule that the initial rent cannot exceed the local reference rate by more than 10%.
Additionally, the regulations provide for high administrative penalties for landlords who take advantage of the shortage of apartments on the market. The maximum fine may reach up to PLN 50,000. euro.
In practice, however, enforcing such regulations is not always easy. As experts from the RynekPierwotny.pl website explain, it is necessary to prove that the owner consciously took advantage of the difficult housing situation and limited supply of premises.
