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11/11/2020
PROMOS News
Rent freeze, round two
The new Berlin regulation of legal requirements for rental prices (MietenWoG Bln), more commonly known as the “Mietendeckel” or rent freeze, has been in effect since the beginning of the year. Its constitutionality remains a topic of controversy, but landlords must still comply with the new requirements. A second level of the law is now coming into effect in November. Once more, we are here to offer support in the technical application.
The Berlin rent freeze consists of two levels. In the first level, landlords first had to ensure that the rents they charged were not above the valid rent for their units on the key date of 18 June 2019. Otherwise, the rental prices had to be reversed, or, as the name implies, frozen. The second level of the law requires the reduction of all rental prices that lie above a standard amount stipulated by the Berlin Senate. This is determined by a detailed table that specifies a valid upper net rent price per square meter according to the construction year, furnishing and location of a unit.
If the rent charged exceeds this maximum value by 20 percent or more, the rent must be reduced. This step is now only a few days away and will be coming into force on 23 November 2020.
Of course, landlords cannot now check each individual lease for a potential violation. PROMOS has developed a tool to automate this process and support the reduction of rent prices. The tool compares the rent charged on the key date of 18 June 2020 with the maximum allowed rent. If the rent on this key date exceeds the allowed rent, then the basic rent is reduced to the allowed amount.
It can also automatically generate correspondence to inform tenants of the new conditions. This allows you to almost entirely automate two time-intensive manual work steps.
Our qualified consultants are even capable of implementing this solution for your company on short notice. Get in touch with us – we will find a quick, individual solution for you.
More information on the rent freeze:
