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There were limits like this already in place in Germany. Rent could only be increased every 12 months, and for Berlin, I believe, no more than 15% total in 3 ye
by w-m 6y ago
There were limits like this already in place in Germany. Rent could only be increased every 12 months, and for Berlin, I believe, no more than 15% total in 3 years.
It didn’t help much. Landlords could circumvent it in many ways: by offering contracts to new renters that automatically increase each year, which then isn’t bound to the limits. For existing tenants they could do bullshit renovations that trigger a modernization clause, also killing the limit. Or put an Ikea couch in the apartment, then renting it as furnished, again circumventing some of the rent limits. Sure you could sue, but in many cases people were just happy to finally find something and ate up the higher prices.
Although I’m positively affected by the latest rent control laws in Berlin, I’m also not totally sure what to make of it. But I wanted to let you know that this is by far not the first law that was passed to try to curb price increase.
- CydeWeys 6y agoThere are market dynamics at play in both places. If the rents are increasing by double digit percentages within a couple years then that means that demand is rapidly outstripping supply. There's really only two options here: Reduce demand by banning people from moving to the city, or increase supply by building a lot more housing. #1 is illegal in the US and likely illegal in Germany too, so #2 it has to be.