Does the Rent Control apply in Munich?
The “Mietpreisbegrenzungsverordnung” (Rent Limitation Ordinance), called Mietpreisbremse (Rent Control law) applies to the entire Munich city area and 161 other municipalities in Bavaria. These cities and municipalities also include many towns and villages in the immediate vicinity of Munich, such as Kirchheim, Garching, Karlsfeld, Germering and Pullach im Isartal.
Although it is a German federal law in force since 2015, each German federal state must decide for itself whether it is valid in its own region.
In Bavaria, too, the Rent Control had to overcome several hurdles before it became fully effective.
Following the extension of the Rent Control by the Bavarian state government, the Rent Control in Munich currently applies until 31 December 2021. If you signed your Munich rental agreement on 7 August 2019 or later, you can apply the Rent Control if you pay too much rent. As a tenant of a municipal housing association, you have the opportunity to enforce your rights already for rental agreements from August 2018.
Unfortunately, politicians have waited a long time to correct the initial formal errors and introduce the Rent Control on a sustainable basis. Most tenants who have signed a new rental agreement before 7 August 2019 since 2015 will therefore not be able to benefit from the law. However, the regulation has been firmly established in Bavaria since 2019 and many tenants in Munich have been successful.
There are still landlords though, who use tricks to circumvent the Rent Control illegally. At the same time many Munich tenants are not aware of their rights. This makes it all the more important that tenants become active now. There are many good reasons to apply the Rent Control. The more households enforce their rights, the slower the rent level in Munich can rise. For example, the basis for calculating the local comparative rent is kept at a lower level.
Exceptions: When does the Rent Control not apply in Munich?
There are exceptions that apply throughout Germany in which the Rent Control cannot be applied. These exceptions also apply to rental relationships in Munich:
In addition to these nationwide regulations, the state of Bavaria has not defined any further exceptions. Even if one of the exceptions applies to your situation as a tenant, we still recommend a check. The cap on rent increases was already lowered in Munich in May 2013: Landlords are allowed to increase the rent by a maximum of 15 percent within three years. In many cases you are therefore still entitled to a reduction in rent due to unlawful increases.
How do I use the Rent Control law in Munich?
In order to be able to apply the Rent Control in Munich, we recommend the following steps to tenants:
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