Thursday, April 15, 2021

Berlin's rent cap was declared illegal, and now shadow rent clauses takes effect


Germany’s highest court has ruled that a rent cap imposed by the Berlin state government is illegal, dealing a huge blow to those who have campaigned to keep the city affordable.

The constitutional court in Karlsruhe overturned the law on Thursday, saying lawmakers in the state had no right to instigate the law


Landlords have also increasingly introduced a schattenmiete, or shadow rent clause, into rental contracts, which tenants were informed they would have to pay in case the court overturned the rent cap.