Real Estate

Senate in Berlin expects 40,000 tenants in need

The Berlin rent cap has tipped – for many Berlin tenants this means high back payments. But not everyone has the money ready during the crisis: The Berlin Senate expects tens of thousands of households in need.

After the end of the rent cap, the Berlin Senate expects tens of thousands of households that may have to be financially supported because of additional payments of lower rents. “Overall, we are assuming around 40,000 Berliners who could potentially need financial support,” says an estimate from the Senate for Urban Development and Housing, which was available to “Welt am Sonntag”. The Federal Constitutional Court declared the regulation null and void.

According to “WamS”, the Berlin Senate assumes that rents were reduced for a total of 340,000 tenant households in November 2020. It can be generally assumed that every tenth person affected will potentially get into an economic emergency if the accrued reduction amounts have to be repaid in one fell swoop, the newspaper quoted from the Senate estimate.

57,000 “shadow rent” contracts come into effect

In addition, there are tenants who have concluded a new contract or have received a notice of rent increase during the period of validity of the rent cap. Many landlords demanded a commitment from the tenant to offset the difference to the table value if the law were to be overturned.

The Senate estimates the number of these so-called “shadow rents” according to “WamS” at 57,000. “If one also assumes that ten percent of those who have made a shadow rental agreement need financial support, that would affect around 5,700 tenancies”.

A total of around 40,000 households would be affected. Among other things, the rent cap stipulated that rents that exceed the value in a fixed price table by more than 20 percent would have to be reduced. In a decision published on Thursday, the Federal Constitutional Court declared the state law on the Berlin rent cap to be unconstitutional. The legislative power here does not lie with the country.

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