The Mietpreisbremse: how rent control in Germany works

1. What does the law say?

The law on the "permissible rent at the start of the tenancy" (§ 556d BGB), better known as the Mietpreisbremse, is a nationwide law that came into effect in 2015. It caps how much rent a landlord may charge on a new tenancy: the net cold rent may not be more than 10 percent above the local comparative rent, which is set out in the regional rent index (Mietspiegel). If the landlord charges more, you are entitled to a reduction.

2. Who is entitled, and are there exceptions?

In principle, the Mietpreisbremse applies to all tenants who live in an area with a tight housing market (§ 556d para. 2 BGB) whose federal state has passed a valid regulation. Alongside Berlin, Hamburg and Munich, many other medium and large cities are covered. Currently, the Mietpreisbremse does not apply in Saarland, Saxony-Anhalt and Schleswig-Holstein. You can find a detailed list of where and since when it applies on our page "Where does the Mietpreisbremse apply?" (in German).

Exceptions from the Mietpreisbremse

1. New builds (first let after 1 October 2014)

   Apartments used and let for the first time after this date. A flat that was merely extended, split or merged does not count as a new build and is not excluded.

2. Comprehensively modernised apartments

   Only if roughly one third of the cost of a comparable new build was invested and the quality clearly improved. Simple repairs (painting, sanding floors) do not count. This exception is rarely met.

3. Temporary use

   Apartments rented only temporarily. For fixed-term leases over one year it is usually worth checking. The Mietpreisbremse also applies to furnished flats; only a reasonable furniture surcharge is allowed, and many landlords set it too high.

4. Older tenancies

   Contracts signed before the Mietpreisbremse came into force in your federal state. It is best to check the start date for your state.

5. A previous rent that was already too high

   Important: the landlord must tell you the previous rent before you sign. If they fail to do so, they cannot rely on this exception afterwards.

3. How to calculate your maximum rent

The fastest way is the free CONNY rent calculator. If you prefer to do it yourself:

1. Find your rent index

   Look up the current rent index (Mietspiegel) for your city, usually on the municipality's official website or on our rent index page.

2. Determine the comparative rent

   Use size, features and location of your flat (from your tenancy agreement) to find the matching value in the index.

3. Add 10 percent

   Comparative rent plus 10% is your maximum rent. Anything above it is your savings potential and can be reduced.

You can reclaim overpaid rent from the point of your formal complaint. For tenancies signed from April 2020 onwards, you can even claim back up to 2.5 years before the complaint.

4. How to enforce your right

Once you know your maximum rent, you formally notify ("rügen") your landlord with a letter of complaint that sets out your request clearly. If the landlord relies on an exception, you can demand proof, which many landlords cannot provide.

If your landlord does not take the complaint seriously, you can involve a lawyer or simply commission CONNY. We enforce your right without any cost risk and without you having to deal with the landlord yourself.

5. What will your landlord do?

Most landlords react calmly and objectively. They know it is they who are breaking the law, not you. Your landlord may not terminate your tenancy because of a rent reduction or disadvantage you in any other way. Tenants are strongly protected in Germany.

Company landlord (housing association)

A large share of landlords are companies, which handle such requests as a standard process and cannot terminate for "personal use". You can assert your right without hesitation.

Private landlord

You enjoy the same protection. If you enforce the Mietpreisbremse with CONNY, we handle the contact professionally and amicably, with the goal of a fair rent and a good tenant-landlord relationship. In the rare case of a threatened termination, our partner lawyers have fended off over 95 percent of terminations after a rent reduction.

Why it is worth it

You save money. On average, tenants who enforced the Mietpreisbremse with CONNY save around 200 euros per month. You help others too: because the rent index is based on previous rents, staying passive pushes the local comparative rents, and the allowed maximums, ever higher. And you take no risk: your landlord cannot terminate you for reducing the rent.

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