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HOUSING

How Germany is reforming its rental law in favour of tenants

Starting next year, tenants in Germany won't have to fear so many drastic mark-ups after modernizations of their flats, and will be better able to rebuke price increases.

How Germany is reforming its rental law in favour of tenants
Flats to let in central Munich, one of the areas most affected by rental increases. Photo: DPA

They should also be able to defend themselves more easily against exorbitant rents – as Germany’s controversial Mietpreisbremse (rental control law) is to be improved accordingly. The law, enacted in the summer of 2015, set a cap for how high landlords in urban areas in Germany could charge above the so-called Mietspiegel, or rental average.

The coalition factions Christian and Social Democrats (CDU/CSU) and Social Democrats (SPD) agreed on a compromise on tenancy law, which the Bundestag wants to put into law on Thursday. Rents, especially in large urban areas in Germany such as Berlin, Hamburg and Munich, have risen massively in recent years.

SEE ALSO: What Germany is doing to keep rents down: special report

The rules, according to which landlords may allocate a part of the costs to tenants after modernizations, are to be tightened. Nationwide landlords may reclaim annually only eight instead of 11 percent of the costs from their tenants that they can now, to cover the costs of repairs or refurbishings to a flat.

The trend of “modernizing out” has been regarded as a major problem in the housing market – for example, when an apartment is luxuriously renovated and tenants can no longer fork down the higher rent.

“The situation, especially in large urban areas, is serious,” said Minister of Justice Katarina Barley (SPD). Young families and single parents in particular have great problems finding affordable housing in so-called conurbations, or vast urban regions comprised of a number of cities and large town, she added.  

The planned capping limit of three euros permitted rent increase per square meter of living space within six years after modernizations remains – but the law will be tightened: Where the rent amounts to less than seven euros per square meter, landlords may only add on an additional two euros per square meter within six years. 

SEE ALSO: Tip of the week: When can my landlord raise my rent?

Reforming the rent index

The current law states that the rental price can only be set at ten percent higher than the so-called Mietspiegel in certain cases – for new buildings, renovations or if the previous rent was already higher one year before the end of the tenancy.

Yet under the new regulations, set to go into effect on January 1st, 2019, tenants should now be able to see more easily why they pay more than previous tenants. If a landlord demands more, he will have to inform the tenant of this before the contract is concluded and state a reason – this was not the case until now.

If the tenant thinks that his landlord is asking too much, it should be easier in future to object, said a speaker of Barley.

The renter is now allowed to rebuke the landlord if the raise in rent is not reasonably justified. The landlord in turn will be obligated to state a reason before making an increase. If the renter still is not sure if the increase is justified, he or she can seek the council of the local Mieterverein, a renter's association which offers legal advice for minimal fees.

SEE ALSO: How to join a Mieterverein (renter's association) in Germany

The previous Grand Coalition introduced the Mietpreisbreme or rent price brake. It applies in regions with a tense and overcrowded housing market, which are determined by the federal states. Yet the law quickly proved to be ineffective – partly because tenants usually did not know how much their predecessors had paid.

“It has always been important to the union that people are not driven out of their traditional residential areas because they can no longer afford their rent,” said SPD Union tenancy law expert Jan-Marco Luczak.

However not everyone was satisfied with the the new legislation changes. Free Democratic  (FDP) member of parliament Katharina Willkomm said that the rent brake was fundamentally unsuitable for tackling the causes of the rent increase and that new residential construction was necessary.

Axel Gedaschko, President of the German Housing Industry Association, felt it would restrict rentals from receiving the refurbishings they needed. “An additional restriction for modernization – and this again especially for landlords with low rents – is completely counterproductive and jeopardizes the future viability of housing in Germany.”

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GERMAN TRADITIONS

What’s open and closed in Germany over the Easter weekend?

People in Germany get a four day weekend over Easter. How are shops, transport and medical services affected by the public holidays?

What's open and closed in Germany over the Easter weekend?

Easter itself falls very early this year: Easter Sunday also coincides with the clocks going forward an hour for summertime, while Easter Monday in 2024 is on April Fool’s Day.

The Easter weekend starts on Friday March 29th, however, many Germans take some days before and after the weekend to extend their holiday. 

Whether you live in Germany or are visiting, here’s what to expect:

READ ALSO: What exactly is Germany’s Green Thursday?

Gründonnerstag or Green Thursday 

Gründonnerstag or Green Thursday falls on March 28th this year. 

This isn’t an official public holiday although some companies do give this day off to staff as a gesture. 

Many people in Germany book this day off themselves as part of their annual leave to extend their Easter holiday. 

One thing you should be aware of – shops will be busy with lots of queues on this day since the following day is a holiday. 

Karfreitag or Good Friday

In Germany, Good Friday, which is on March 29th, is a public holiday or Feiertag. 

Traditionally no church bells are supposed to ring and no music should be played as this is the day Jesus was crucified. The word Kar comes from old German Kara, meaning sorrow or grief.
 
For many parts of Germany, this quiet time also means it is still illegal to dance on Good Friday. But whether anyone actually enforces this is another question.

In general, you can except the majority of workplaces to be shut as well as schools.

Supermarkets, retail stores and pharmacies also won’t be open (except for a few in areas such as train stations) so make sure you have enough groceries at home. 

Restaurants and cafes are usually open on public holidays and eager to accept customers. 

Saturday

Opening hours across the country will function as they normally do on Saturday March 30th. 

But do expect supermarkets to be super busy because they are closed on the following two days.

Ostern or Easter Sunday

Like any other Sunday in Germany, shops and supermarkets will be closed. 

People in Germany often like to spend this day with families so you should expect lots of people of all ages doing activities like a walk in the forest or park, Easter egg hunts or going to church. 

Chocolate Easter eggs are not a big tradition in Germany compared to other places like the UK, for example. But there are still plenty of chocolate bunnies around. 

READ ALSO: 10 ways to celebrate Easter in Germany like a local

An Easter hare statue outside ah ouse in Coburg, Bavaria.

An Easter hare statue outside ah ouse in Coburg, Bavaria. Photo: picture alliance/dpa | Daniel Vogl

Ostermontag or Easter Monday

This falls on April 1st and is another public holiday in Germany. 

Once again, that means workplaces are closed as well as shops, post offices and supermarkets. 

What about public transport?

Public transport runs all throughout the holiday period, but on public holidays there is normally a Sunday schedule. 

Nationwide train services also run across the period (but keep in mind that there could be a strike since we’ve seen a lot of them lately). 

What about schools?

Schools in Germany will be closed on Easter Monday and Good Friday.

Pupils also get a holiday that usually lasts two weeks around Easter, known as the Osterferien. 

Schools in Bremen, Hamburg and Lower Saxony started their break on March 18th. 

Other states follow around March 23rd-25th. Schleswig-Holstein schools are the latest to start their break, which runs from April 2nd to April 19th.

READ ALSO: What days will workers in Germany get off in 2024?

Doctors, pharmacies and hospitals 

Doctors’ offices and pharmacies are usually closed on public holidays, such as Good Friday and Easter Monday.

But you could still try calling your GP firstly in case they have a message letting you know the details of the on-call doctor. 

You can also contact the non-emergency medical on-call service by calling 116 117 who can advise you if you have urgent questions about your health.

You can also head to the 116117 website to find a local surgery that offers emergency services.

In an emergency, call 112 for the fire brigade or ambulance or 110 for the police. 

Make sure you are stocked up on any medications you need before the public holidays. 

Tourist attractions

Many tourist attractions will be open as normal throughout the Easter period, including Good Friday and Easter Monday but some may operate altered opening hours. Check the attraction’s opening hours before visiting. 

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