The Frankfurt District Court has declared the rent brake in Hesse invalid. The reason was a lack of legal basis: the Hessian tenant protection regulation is based on outdated data and does not meet the requirements of the German Civil Code, the ruling states.
The state government’s tenant protection regulation lists 49 municipalities with tight housing markets where the rent brake applied. Without this regulation, not only the cap on new rentals falls away, but also the increase limit for existing tenancies: instead of a maximum 15 percent rent increase over three years, 20 percent is now allowed. In addition, the eviction protection period when converting rental apartments into condominiums shortens from eight to three years, and municipalities lose the basis to take action against vacant housing.
The property owners’ association Haus & Grund sees itself vindicated. Managing Director Gregor Weil warned of “unrest in the relationship between landlords and tenants.” Younes Frank Ehrhardt, Managing Director of Haus & Grund Hessen, called it a “slap in the face for Economics Minister Kaweh Mansoori (SPD).” Tenant advocates are concerned: Rolf Janßen, Managing Director of the Frankfurt Tenant Protection Association, expects stronger rent increases and calls on politicians to act quickly. The ruling initially applies only to the individual case, but according to Haus & Grund, it has an “enormous signaling effect for all of Hesse.”
Source: www.faz.net
