The German Property Owners’ Association, Haus & Grund, has cautioned against imposing fines on landlords failing to comply with the country’s rent control measures, deeming such considerations by the federal government “a fatal signal.
Kai Warnecke, President of Haus & Grund, told the Spiegel news magazine that intensifying rent control through additional penalties would not alleviate the situation but rather exacerbate difficulties in areas with tight housing markets. He argued that sanctions would increase administrative burdens and create legal risks, ultimately discouraging investment in new construction projects.
Next Tuesday, the Rent Rights Commission, a body comprised of tenant and landlord representatives, as well as scientific experts, will begin its work. Under the leadership of Federal Minister of Justice Stefanie Hubig (SPD), the commission is tasked with developing proposals – including potential fine regulations – for breaches of the rent control system, which caps rental prices for new tenancies.
In areas with high demand for housing, the rent charged upon signing a new lease agreement is currently capped at ten percent above the local comparable rent. Tenants can reclaim excessive payments, but landlords have previously faced no direct repercussions for non-compliance. The Commission is expected to present its recommendations by the end of 2026.