Berlin’s residential rent freeze could be illegal

Berlin’s decision to impose residential property rent freezes from 2020 until the end of 2024 could be illegal, according to Black Label Properties.

The international estate agency, which has operations in the German capital, argues that the German Civil Code (BGB) already provides for a rent brake and that this ceiling can only be closed by the federal government. Black Label Properties says the rent cap requested by Berlin’s local authority will therefore not be able to stand up in court for five years, as landlords and investors are expected to mount legal challenges to reverse it. The city’s government wants the rent freeze to come into force from 2020, but says it will also probably apply retroactively to all rental agreements that are in place from June 18, 2019.

Black Label Properties believes any imposition of a cap will end up hurting tenants even more in the long term. “It particularly hits small landlords who let private dwellings. Nobody talks about