Real Estate

After the rent cap: Deutsche Wohnen demands additional rent payments

The rent cap was tipped – now landlords can demand back payments of the rent. The Deutsche Wohnen Group does not want to do without it either.

The real estate group Deutsche Wohnen Deutsche Wohnen share want After the end of the Berlin rent cap, you cannot waive additional claims from tenants. “No tenant of Deutsche Wohnen will lose their apartment as a result of the decision,” the company announced on Thursday in Berlin.

“To completely forego the settlement of outstanding debts, however, would not meet our obligations to the company, its employees and owners.” The Federal Constitutional Court declared the Rent Cover Act, which came into force in February 2020, to be null and void on Thursday. This means that many tenants in Berlin have to make additional payments.

“We offer numerous options for settling the remaining balance that flexibly take into account the tenants’ financial situation,” announced Deutsche Wohnen. The group owns more than 155,400 apartments in Germany, around three quarters of them in Berlin. “About 80 percent of our tenants expect an average of less than 500 euros to be returned,” said a company spokesman. On average it is a total of 430 euros per tenant.

Deutsche Wohnen wants to distribute a higher dividend

In any case, the Berlin rent cap has left its mark on Deutsche Wohnen 2020 – albeit only slightly. The contract rents remained at the previous year’s level at 837.6 million euros, as the Dax company announced at the end of March. The existing rent in the entire portfolio fell by 4.1 percent to an average of 6.70 euros per square meter due to the Berlin rent cap.

The operating profit fell slightly by 1.6 percent to around 544 million euros. The dividend is still to be increased to EUR 1.03 per share. This will be decided at the Annual General Meeting in early June 2021. What a dividend is read here.

A year earlier, Deutsche Wohnen had distributed 90 cents per share. The profit for the period was 1.54 billion euros. That was 3.5 percent less than in the previous year.

Deutsche Wohnen competitor wants to forego additional payments

The Vonovia housing group Vonovia shares, who owns around 42,000 apartments in Berlin, wants to forego additional rent claims, as the company announced in Bochum.

The tenants should “not suffer any financial disadvantages due to political decisions made,” said CEO Rolf Buch on Thursday, according to the announcement.

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