Germany’s Tenants’ Association Criticizes: Rent Cap "Regularly Circumvented" in Practice

According to an analysis by the German Tenants' Association (DMB), the rent control law is regularly circumvented. An exemplary study revealed "alarming results," the DMB announced. Politicians must take urgent action. - AFP

The rent control law in Germany is being regularly violated, according to an analysis by the German Tenants’ Association (DMB). A sample review of rental markets in Berlin and in Ulm, Baden-Württemberg, has revealed “alarming results,” the DMB said on Tuesday. The organization stated that policymakers must act urgently in light of these findings.

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According to the Tenants’ Association, 46 percent of listed existing apartments in Berlin exceed the permissible rent ceilings; in more than one-third of cases, “rent gouging” is even present. In Ulm, seven out of ten listings reportedly violate the rent cap. For the study, around 20,000 online listings for apartments in both cities were evaluated between May 2024 and October 2025.

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“In Berlin and Ulm we see that the rent cap is regularly circumvented, and this without consequences for landlords who do not comply with the applicable law,” said DMB President Melanie Weber-Moritz. This must be stopped quickly. Otherwise, she warned, the situation for tenants will worsen further due to the tight housing markets in most German cities, “and more and more people will no longer be able to afford housing.”

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“It is high time for lawmakers to act to protect tenants from unlawfully high rents,” the DMB President demanded. According to the Tenants’ Association, stricter penalties for rent gouging are needed above all. In addition, the association said that the furnishing surcharge in rental contracts should be listed separately to ensure compliance with the rent cap in furnished apartments.

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Furthermore, the rent cap must apply permanently and nationwide, not only in particularly strained housing markets, the DMB demanded. Violations of the rent cap must also be “punished with severe fines in order to create an effective deterrent.” The systematic circumvention of the rent cap and the legal provision against rent gouging is “not a trivial offense and urgently requires political action,” Weber-Moritz declared.

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