The case, which unfolded in the district of Friedrichshain-Kreuzberg, involved a landlady who was found to be charging rent for a 38-square-metre flat at a rate approximately 190 percent above the local average, far exceeding the legal limit of 20 percent.
The district housing office imposed a fine of €26,253.50 on the landlady, in addition to ordering her to refund €22,264.08 in overpaid rent to the former tenant.
Initially, the landlady appealed the penalty but withdrew her challenge just one day before the scheduled court hearing. Observers have speculated that her decision to withdraw the appeal may have been motivated by a desire to avoid a landmark court ruling on usurious rents, which could have set a precedent for future cases.
The reaction from local politicians was swift and positive. Regine Sommer-Wetter, Deputy District Mayor and city councillor for citizen services (Left Party), described it as “a good day for the tenants of Friedrichshain-Kreuzberg,” expressing hope the decision would serve as a model for other districts in their efforts to combat excessive rents in Berlin.
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The Left Party’s rent expert in the House of Representatives also welcomed the outcome, calling it a potential “breakthrough in the fight against illegal rents in Berlin.”
A widespread problem
Recent data highlights the extent of the problem of excessive rents in Berlin.
By mid-May, a rent profiteering check launched a few months earlier by The Left Party had been used over 50,000 times in the city. In around 35,000 cases, rents were at least 20 percent too high, with an average excess of 54.7 percent.
READ ALSO: Almost all rents in Berlin found to be illegally high
Despite 2,000 cases being reported to district offices, not a single rent reduction had been enforced prior to this case.
Under German law, demanding rents that exceed the local comparative rent by more than 50 percent is a criminal offence, while exceeding it by at least 20 percent constitutes an administrative offence.
How can tenants challenge excessive rents?
Tenants are encouraged to check whether their rent exceeds the local comparative rate by 20 percent or more and, if so, to report the case to their district housing office for investigation and possible restitution.
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Tenants in Germany can bring civil claims to seek refunds for rents that exceed the local comparative rent by at least 20 percent, which is considered an administrative offense (Ordnungswidrigkeit).
If a landlord demands rent that exceeds the local comparative rent by more than 50 percent, this constitutes a criminal offense (Straftat) under German law. Only the state can decide to bring criminal charges (which carry the possibility of fines) for such severe rent gouging.
Paul Krantz, Editor, The Local Germany
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