4 ms·

Will this affect people who have started living in Berlin under the rent cap-system? I hope they won't have to move out all of a sudden, facing sudden, higher r

by daptaq 6y ago

Will this affect people who have started living in Berlin under the rent cap-system? I hope they won't have to move out all of a sudden, facing sudden, higher rents.

danielatc 6y ago
It's worse. Many (most?) Landlords already established so called shadow rents months or years ago in case the rent cap wasn't legal. This allows them to retroactively collect the difference of the past rents. So a lot of tenants will now have to pay massive sums to their landlords.
avh02 6y ago
most contracts drawn up during the "the law is being challenged" period have a "shadow rent" where you agree to pay the difference to what the rent is without the cap. I.e: "it's x euros _now_, but if/when it's repealed, you'll pay y euros, and the difference between the two"
rndgermandude 6y ago
It will affect them. The court overturning the cap means that renters will have to pay whatever they agreed to in their rental contracts, even if much higher than what they had to pay when the cap was active. Even worse, the landlords may request you pay back the difference you "saved" between the time the cap came into effect and now. If you entered a new renting agreement post cap, the landlord might have kind of written the cap into the terms as "shadow rents" [other commenters mentioned]. Read your contract very carefully. But even if you're good there, the landlord may try to have the contract invalidated by a court (probably not going to happen), or legally cancel the contract (after the normal notification period required by law) and offer to make a new contract with higher prices.
- nicbou 6y ago
  This is correct, but only if your rent contract included a higher "shadow rent". I am very fortunate to have a rent contract that included lower rent frozen for 5 years, but without any conditions. In my case, I get to keep my cheap rent. If your rent is about to go up, don't forget that the Mietpreisbremse is still in effect. You can still get your rent reduced this way, either alone, with a tenants' union, with Wenigermiete, or with a regular lawyer.

by daptaq 6y ago

Will this affect people who have started living in Berlin under the rent cap-system? I hope they won't have to move out all of a sudden, facing sudden, higher rents.

danielatc 6y ago

It's worse. Many (most?) Landlords already established so called shadow rents months or years ago in case the rent cap wasn't legal. This allows them to retroactively collect the difference of the past rents. So a lot of tenants will now have to pay massive sums to their landlords.

avh02 6y ago

most contracts drawn up during the "the law is being challenged" period have a "shadow rent" where you agree to pay the difference to what the rent is without the cap. I.e: "it's x euros _now_, but if/when it's repealed, you'll pay y euros, and the difference between the two"

rndgermandude 6y ago

It will affect them. The court overturning the cap means that renters will have to pay whatever they agreed to in their rental contracts, even if much higher than what they had to pay when the cap was active. Even worse, the landlords may request you pay back the difference you "saved" between the time the cap came into effect and now. If you entered a new renting agreement post cap, the landlord might have kind of written the cap into the terms as "shadow rents" [other commenters mentioned]. Read your contract very carefully. But even if you're good there, the landlord may try to have the contract invalidated by a court (probably not going to happen), or legally cancel the contract (after the normal notification period required by law) and offer to make a new contract with higher prices.

nicbou 6y ago
This is correct, but only if your rent contract included a higher "shadow rent". I am very fortunate to have a rent contract that included lower rent frozen for 5 years, but without any conditions. In my case, I get to keep my cheap rent. If your rent is about to go up, don't forget that the Mietpreisbremse is still in effect. You can still get your rent reduced this way, either alone, with a tenants' union, with Wenigermiete, or with a regular lawyer.