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In Germany, rental prices are generally not allowed to exceed 10% of the regional average unless the property is for temporary use or furnished, which allows landlords to charge higher rents.
The Berlin Tenants' Association highlights that the large market for temporary, furnished rentals is a major obstacle for those seeking long-term housing, as these types of rentals can often bypass standard rent controls.
The association has reported that furnished rental apartments can be up to five times more expensive than standard rentals, limiting availability for those seeking long-term leases with stable rents. They are urging the Ministry of Justice to impose stricter rental regulations, according to a report by a European publication.
Furthermore, the association is advocating for a requirement that landlords itemize the costs of the furniture and the apartment itself. They argue that this transparency would help lower the inflated rental prices. However, the Ministry of Justice has indicated it does not plan to amend the current laws.
Ulrike Hamann-Onnerz, the managing director of the Berlin Tenants’ Association, criticized the Free Democratic Party (SPD), claiming they predominantly support landlords' interests and neglect tenant needs, with no efforts to regulate the market that would benefit renters.
The Ministry of Justice has informed the press that it sees no need to change the law concerning furnished housing, suggesting that building more apartments will help manage rental price increases in the long term.
A report by consulting firm Oxford Economics, prepared for the ministry, supports this view, indicating that new housing construction will increase supply.
The Free Democratic Party's parliamentary group has expressed that the focus should be on making construction processes faster and more cost-effective, rather than on regulation.
However, rising costs and high inflation have led to a housing crisis, with housing construction volumes well below government targets.
At the same time, Germany has one of the highest proportions of renters compared to owners in Europe as a whole.
Germany's construction minister has already said that the government will present a strategy to move people to the countryside to address the housing shortage.
