Rent Cap – Hardship Permits

On November 23, 2020, the Berlin Rental Cap (Mietendeckel) will kick in. Then, rents for apartments built before 2014 must not exceed rates specified under the regulation. For landlords who cover costs of financing from the rents, this may lead to losses. To give an example:
 
The rent cap for an apartment built 1918 is 6.45 €/sqm/month. Costs for repairs are 1.25/sqm/month. administration fees (condo management + rental management + misc. for banking etc.) may be 0.75/sqm/month. If the owner bought the apartment for 4500.00 €/sqm with a 70 % financing including a 5 % annuity, financing costs for each sqm are 13.125 €/month (4500.00 € x0.7 x0.5 /12 = 13.125 €).

The calculation of what is left for the owner is:

  • Rent/sqm/month: 6.45 €
  • Repairs/sqm/month: -1.25 €
  • Administration/sqm/month: -0.75 €
  • Financing/sqm/month: -13.125 €
  • Rental income/sqm/month: -8.675 €

So, if we are looking at a 100 sqm apartment, the landlord must put 10'410.00 € on the rental account each year to cover the running costs.
 
To avoid such losses, the Rent Cap Regulation gives landlords the opportunity to file for a case of hardship, which will permit the landlord to ask for a higher rent.
 
We can check if you are eligible for such a permit and file for you. For the check, we need the following information/documents from you:

  • Information needed (Where to find/please send)
  • apartment address and size (rental contract)
  • amount of net cold rent (rental contract; if appl. last increase of the net cold rent)
  • year of first occupancy (energy certificate)
  • amount of condo fees, economic plan of the condo, "Wirtschaftsplan", or last condo bill, "Hausgeldabrechnung" (economic plan of the condo, "Wirtschaftsplan", or last condo bill, "Hausgeldabrechnung")
  • rental mangement fees (rental management contract, "SEV-Vertrag")
  • financing costs (loan documents, European Standardised Information Sheet (ESIS))

Costs for a standard reviewing/checking/reporting are 250 € + VAT, costs for filing are 500 € + VAT. Please contact us under realestate@vpmk.de.

vpmk Rechtsanwälte Legal Services PartmbB
BERLIN

Monbijouplatz 3a
10178 Berlin-Mitte

Telefon +49 (0)30 536 33 99 0
Telefax +49 (0)30 536 33 99 8

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70182 Stuttgart

Telefon +49 (0)711 252 69 370
Telefax +49 (0)711 252 69 379

mail [at] vpmk.de

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