Posted on 06/10/2015 7:25:15 PM PDT by Lorianne
Capital pioneers law prohibiting landlords from charging new tenants more than 10% above local average __ Berlin has become the first city in Germany in which rent-control legislation has come into force in a bid to put the brakes on some of the fastest rising rents in Europe.
From Monday, landlords in the capital will be barred from increasing rents by more than 10% above the local average. Such controls were already in place for existing tenants but have now been extended to new contracts.
“The rent ceiling is very important for Berlin because the difference between the rent paid in existing contracts and new contracts is so high,” said Reiner Wild, managing director of the Berlin Tenants’ Association. “The other problem is that we have 40,000 more inhabitants per year. Because of this situation the housing market is very strong.”
Berlin is pioneering the rent cap after the national parliament approved the law, aimed at areas with housing shortages, in March. Berliners say flat-hunting is becoming increasingly competitive.
“We were looking for the best part of a year,” said Vlasis Tritakis, a student. He, his partner Sofia and their 18-month-old son moved out of a flat-share into a one-bedroomed apartment in the district of Kreuzberg in April.
But sooner or later they will have to find a place big enough for his son to have a room of his own. They say they don’t stand much of a chance against competition from potential tenants with better finances. “I don’t know how we will do it,” said Tritakis.
(Excerpt) Read more at theguardian.com ...
You would think they would had learned their lesson about national socialism.
Why do I see an apartment shortage in Berlin in the near future...?
If new construction is exempt it will result in an abundance of apartments- high priced new apartments these people can’t afford LOL!
rent caps will probably mean less construction and that will cause shortages
If all the landlords get together and raise to the maximum permitted. then there would be a new base from which the next hike could come. Seems like as long as everyone works together, there’s no limit to what could be achieved.
We were looking for the best part of a year,” said Vlasis Tritakis, a student. He, his partner Sofia and their 18-month-old son moved out of a flat-share into a one-bedroomed apartment in the district of Kreuzberg in April.
But sooner or later they will have to find a place big enough for his son to have a room of his own. They say they don’t stand much of a chance against competition from potential tenants with better finances. “I don’t know how we will do it,” said Tritakis.
moving to an affordable area is too hard now???
That’s called “collusion” but it’s still a good idea. LOL
You must be one of them super smart genius type capitalists. Either that or a very good fortune teller. Will I be rich in the future?
(sarcastic kidding of course)
A perfect example of supply and demand. The commies in Berkeley have had rent control for decades. the result is run down, dilapidated rental units, and less of them. Landlords will not invest in upkeep if there is no profit incentive.
Government outlaws supply and demand. Film at 11.
THIS time it will be different!
“I don’t know how we will do it,” said Tritakis.
Well, he could move his family back to Greece where what they are doing in Berlin has gone on long enough for the whole country to achieve junk bond status. Hay is alway less expensive if you buy the kind that’s already been through the horse.
“Government outlaws supply and demand. Film at 11.”
They are going to start on outlawing gravity next week!!!
But Germany has always been big on cartels.
Gresham’s law. The nice apartments will be removed from the rental market. They’ll probably be sold as condominiums.
Not sure about now but Kreuzberg *was* the most affordable part of Berlin.
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