How High Can Landlords Legally Charge for a Furnished Property in Germany?
Many people believe rent control (Mietpreisbremse) doesn't apply to furnished apartments. However, that's not true.
Does rent control apply to furnished properties?
Yes, rent control applies to furnished properties.
Rent control doesn't apply only in the following situation (§549(2) No. 2):
- The property is mainly furnished by the landlord, AND
- The landlord lives in the property with the tenant.
It's rare for the landlord to live in the property with the tenant.
If you rent a furnished apartment without sharing it with your landlord, rent control applies. This means your landlord can only charge up to 10% above the local comparative rent (ortsübliche Vergleichsmiete) at the start of the tenancy.
NOTE: When checking the local rent index, you must compare the rent of your furnished property with that of other similar furnished properties.
However, the problem is that German rent indexes list prices for unfurnished properties. This allows landlords to hide furniture surcharges in the total rent.
How can you determine if your rent exceeds the local rent index?
Municipality publishes the rent index of furnished properties
- Check the rent of similar properties as per the rent index.
- The total rent can be up to 10% above the local comparative rent.
Example: Suppose the local rent index (Mietspiegel) for similar furnished properties is €8/m². In this case, the maximum allowed rent for a 100 m² furnished apartment is €880 (€800 + 10% of €800).
If the rent is higher, you can dispute it and ask for a refund of excess rent paid retrospectively.
Municipality doesn't publish the rent index of furnished properties
- Check the rent of similar unfurnished properties as per the rent index. Increase it by 10%.
- Calculate the furniture surcharge. You'll learn how to calculate the furniture surcharge later.
- Add the values from steps 1 and 2. This is the maximum rent your landlord may charge.
How do you calculate furniture surcharge?
There are different ways to calculate the furniture surcharge. The most common way is the Berlin Model.
As per the Berlin Model, the landlord can add 2% of the furniture’s current value at move-in to the rent.
The total rent = Local rent of unfurnished property (from Mietspiegel) + 2% of the furniture’s current value at move-in.
Common issues
1. No rent index for furnished properties
Municipalities usually only publish the rent of unfurnished properties. This makes it tough to determine if the rent is high or not.
You have to calculate the furniture surcharge yourself to determine the allowed rent.
2. You may not know the furniture’s value
You need the purchase price and age of the furniture to calculate the furniture's current value. Landlords are often reluctant to share this information.
3. The furniture surcharge calculation method is not fixed by law
Courts may use different methods than the Berlin Model, making legal action risky.
4. The definition of a furnished apartment is not defined in law
What does a furnished property actually mean? Is having a bed and an almirah considered furnished, or should the landlord also offer a refrigerator and washing machine?
The term furnished property is not defined in law. This leaves room for interpretation. However,
- Fully furnished usually means you can move in without bringing basic furniture like a bed, table, and wardrobe.
- Partially furnished could mean that only some items are provided.
Your rent is higher than the rent index - What can you do?
Suppose you believe your rent is high based on the above calculations. In this case, you have three options.
- If you are a tenants' association (Mieterverein) member, get support from them. They can confirm if the rent is high and handle all out-of-court proceedings for you.
- If you have tenant legal insurance, get support from a lawyer with expertise in tenancy law.
- Get support from companies like Conny or Allright. They don't charge you a cent. However, takes hefty commissions if they win the case.
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