Rent control: what Frankfurt tenants should know now

The rent control law (Mietpreisbremse) is a federal law that has been in force since 2015. Each federal state is itself responsible for enacting the so-called rent brake in the form of a rent limitation ordinance (Mietpreisbegrenzungsverordnung). Like many other federal states, Hesse made formal errors when enacting the law. As a result, rent control in Frankfurt only applies to tenancy agreements signed on or after 28 June 2019.

How the law was passed

Rent control in the state of Hesse had to clear several hurdles before it could come into force for all of Frankfurt's districts in 2019.

• 17 November 2015: The state of Hesse enacts rent control for 16 areas, valid until the end of June 2019. Frankfurt am Main is among the designated areas with a tight housing market. However, the four districts of Berkersheim, Eckenheim, Harheim and Unterliederbach are exempt from rent control.
• 6 July 2016: The supervisory board of the municipal housing company ABG Frankfurt Holding adopts a separate rent cap for its own properties. It includes a cap of no more than five per cent rent increase within five years.
• 27 March 2018: The Hessian Regional Court (Landgericht, LG) declares rent control invalid in one case because the text of the ordinance lacks a statement of reasons. An appeal to the Federal Court of Justice (Bundesgerichtshof, BGH) is admitted.
• 4 February 2019: The Hessian Ministry of Economics announces an extension of rent control. Unlike before, the law is this time not to apply in six Frankfurt districts where, according to an expert report, the conditions for rent control are not met: Bergen-Enkheim, Eckenheim, Hausen, Nieder-Erlenbach, Praunheim and Sindlingen
• 17 July 2019: The BGH declares rent control in Hesse void. As the Hessian Regional Court had already argued, the 2015 rent limitation ordinance lacked a statement of reasons.
• 28 July 2019: The new rent limitation ordinance for Hesse comes into force with a complete statement of reasons and extends the scope of rent control to a total of 31 towns and municipalities. Contrary to earlier plans, there are no exceptions within Frankfurt's city area and the law applies to all districts. At federal level, the law is still limited until 26 November 2020.
• 13 February 2020: The Higher Regional Court (Oberlandesgericht) of Frankfurt am Main rules that tenants cannot claim damages from the state of Hesse for the formal errors made when the first ordinance was enacted. Some tenants had sued their landlords on the basis of rent control but can no longer assert the claim for tenancy agreements concluded before July 2019.
• 1 April 2020: The federal government tightens rent control, so that tenants in Frankfurt too can reclaim overpaid rent from their landlord retroactively. This rule applies to tenancies that began in or after April 2020. In addition, the federal government allows rent control to be extended by a further five years. Each federal state must enact the extension until 2025 itself.
• 28 June 2020: The Hessian state government in Wiesbaden announces that it will extend rent control.
• 23 September 2020: The Hessian Ministry of Economics presents an extended ordinance under which rent control is to be expanded from 31 to a total of 48 towns and municipalities in Hesse. At the same time, the blocking periods for terminations on grounds of personal use (Eigenbedarfskündigung) are to be extended in favour of tenants.

From when does rent control apply in Frankfurt?

Frankfurt tenants can make use of rent control provided they concluded a new tenancy agreement on or after 28 June 2019. The law is currently limited until 26 November 2020 but is to be extended by a further five years until 2025. We will keep you updated.

How effective is the law in Frankfurt?

Up until rent control was re-enacted in summer 2019, not a single tenant in Hesse had enforced a rent reduction in court by invoking rent control. Nevertheless, academic studies had by then shown that the law had slightly slowed the rise in rents.

Since rent control has applied to all of Frankfurt's districts, still only a few tenants enforce their rights. Reason enough to take action now and make use of the law. The more tenants invoke rent control in Frankfurt, the better it can have a positive effect and keep the local comparative rent at a stable level.

The local comparative rent (ortsübliche Vergleichsmiete) is based on the rent index and forms the basis for calculating the rent permitted under rent control. As a tenant, you have the opportunity to make an important contribution to slowing the rise in rents in Frankfurt.

The exceptions that apply to rent control nationwide also apply in Frankfurt:

• Older tenancy agreements: Tenancy agreements signed before rent control came into force are exempt from rent control. In Hesse, the law has been in force since 28 July 2019.
• First-time letting: New flats that were used for the first time on or after 1 October 2014 are also exempt from the law.
• Modernisation: Rent control cannot be invoked for housing that has been extensively modernised.
• Temporarily let housing: Tenants who rent housing only temporarily cannot invoke rent control.
• Existing rents: Housing for which the previous tenants already paid an excessive rent is likewise not covered by rent control.

Beyond these exceptions defined at federal level, the state of Hesse has not laid down any further exceptions. Nevertheless, many landlords use all kinds of tricks to illegally circumvent rent control. You can fight back against this.

Even if one of the exceptions applies to your tenancy, it is always worth checking the amount of your rent. Not all rent increases are permissible. In Frankfurt, for example, a stricter cap of 15 per cent applies, which landlords may not exceed when raising the rent within three years.

We recommend that Frankfurt tenants take the following steps to invoke rent control now:

1. Determine the maximum permissible rent: You can use our free rent index calculator for this.
2. Send an objection to your landlord: Found out that you are paying too much rent? Inform your landlord with a formal objection letter (Rüge).
3. Demand proof of exceptions: Your landlord claims an exception from rent control applies? Demand the appropriate evidence.
4. Instruct a lawyer or CONNY: Your landlord has stopped responding? Enforce your rights with legal support.

CONNY has been championing tenants' rights for years and is the leading consumer rights portal. Let us help you invoke rent control. For you it's simple & convenient:

1. You send us the details of your tenancy
2. We check free of charge whether the amount of your rent is permissible
3. If a reduction is possible, we pay for a partner lawyer
4. You only incur costs if we are successful for you