The rent cap (Mietpreisbremse, Section 556d BGB) applies in many German cities with tight housing markets. For new tenancies, the rent may generally exceed the local comparative rent by no more than 10%.

Where the cap applies and how it works

The federal states decide by regulation where the rent cap applies, for example in Berlin, Munich, Hamburg, Frankfurt and Cologne. When a new contract is signed, the basic rent (Kaltmiete) may not exceed the local comparative rent (ortsübliche Vergleichsmiete) by more than 10%.

Working out the comparative rent from the Mietspiegel

The local comparative rent is determined using the city's official rent index (Mietspiegel). It takes into account the year of construction, the location, a lift, the type of heating, the quality of the bathroom and kitchen, and the building's energy performance.

Exceptions: new buildings and extensive modernisation

The cap does not apply to flats first used and let after 1 October 2014. A landlord may also exceed the limit if the previous tenant already paid more or if the flat was extensively modernised before being let.

Making a complaint (Rüge) and getting money back

To have the rent reduced, send the landlord a written complaint (Rüge) about the breach with a calculation based on the Mietspiegel. If you complain within 30 months of the start of the tenancy, the landlord must repay the excess rent from the start of the tenancy.

What to check

  • Check whether your city is covered by the rent cap.
  • Calculate the comparative rent for your address with the official Mietspiegel calculator.
  • Ask the landlord in writing what the previous tenant paid (Vormiete).
  • Send a legally sound complaint by registered post and demand repayment of the excess.

Example situation

A Berlin tenant discovers that his rent is €220 a month above the permitted level, files a complaint through the tenants' association and has his rent reduced by €2,640 a year.

Next step

Signing the contract does not take away your right to check the rent: if it breaches the rent cap, you can complain after moving in and demand a reduction.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.