Germany’s Rental Crisis: Thousands of Tenants Paying Above Legal Limits

Photo: Mietwucher

An online calculator launched by the Die Linke party found that 146,700 tenants in Germany are paying rents above the legally permissible level, according to portal Iamexpat.de. While the Bundestag did not approve the left-wing party’s bill with stricter penalties for violations, authorities have already signalled the need for changes in the rental market.

220,000 checks

The service is part of a nationwide campaign by Die Linke, launched in November 2024. In the first three days alone the calculator was used by thousands of people, submitting 280 reports of suspected rent-abuse to local housing authorities—141 in Berlin, 67 in Leipzig, 64 in Hamburg and 8 in Freiburg. Over its first year the system analysed data on approximately 220,000 renters across Germany. It found that 146,700 of them had grounds for recalculation. In half of those cases the rent exceeded the limit by more than 50%. A total of 7,500 claims were formally submitted. If all are upheld, tenants could save on average around €250 per month. Many renters are reluctant to engage in disputes with landlords. The free calculator platform made it easier to compare their rent with official norms. The first precedent for enforcement was recorded in October: the Friedrichshain-Kreuzberg district of Berlin imposed a €26,253.50 fine on the owner of a 38 m² flat who rented it at a rate 190% above the indexed limit. The tenant was given the right to seek back-payments exceeding €22,000.

‘Rent-Brake’ regulation

Since 2015 Germany has operated the mechanism called the Mietpreisbremse (“rent-brake”) to limit rent increases in designated tight housing markets. Under this law new rental agreements cannot exceed 10% above the local comparative rent as indicated by the regional “Mietspiegel”. Many analysts say the regulation falls short because it excludes newly built or heavily modernised apartments, as well as short-term leases, leaving legal loopholes exploited by landlords.

Reforms are inevitable

According to the Deutscher Mieterbund (German Tenants’ Association), last year roughly 44 million people—over 52.8% of Germany’s population—were renting homes. Of these, some 6 million (13.2%) were considered extremely burdened by housing costs, nearly 12.8 million (29%) feared that they could not afford their current home in the future, and about 7 million (16%) expressed concern about potential losing their residence. A law proposal to raise fines to €100,000 was presented by Die Linke but rejected in the Bundestag (440 votes against, 131 in favour). The Justice Minister Stefanie Hubig said that current rules are effectively not working and an expert commission will propose concrete amendments by end of 2026.