The German Federal Association of Housing and Real Estate Companies (GdW) advocates that the cost contribution of tenants toward rent increases resulting from modernization works should be structured based on their income in the future. Speaking to the “Bild” newspaper (Saturday edition), Association President Axel Gedaschko stated, “Income must play a stronger role in the future and should no longer be solely determined by the base rent. The goal must be a system of scaling: tenants with higher incomes should contribute proportionally more to modernization costs than those with lower incomes”. This proposal specifically relates to cost sharing for switching to more climate-friendly and efficient heating systems, as well as for general energy-efficiency retrofitting measures. Currently, these costs are often passed on to tenants equally regardless of their financial situation. Gedaschko also urged the current ruling coalition to take quick action, arguing that it is “unjust that, for example, a single-parent nurse earning a base rent of €4.50 will see her rent increase exactly the same amount after a renovation as a dual-income couple in the same house”.
Landlords Must Pay More Tenants Pay Fair Share of Renovation Costs
