GermanyWhat is the rent brake and where does it apply?
The rent brake (Mietpreisbremse) limits new rents to no more than 10% above the local comparable rent in designated 'tight housing market' areas, as defined by state regulations under BGB § 556d.
What the Law Says
The German rent brake — known as the Mietpreisbremse — is a legal limit on how much landlords can charge for newly rented apartments in areas with especially high demand and low supply.
It applies only when a new tenancy begins (i.e., at the start of a new lease), not during an ongoing tenancy. Its purpose is to prevent excessive rent spikes in cities and neighborhoods where housing is scarce and competition among tenants is intense.
Under BGB § 556d(1), the rent for a new lease in a designated 'tight housing market' area may not exceed the local comparable rent (ortsübliche Vergleichsmiete) by more than 10%. The local comparable rent is determined by analyzing rents for similar apartments in the same area — size, age, equipment, and location — over the past four years.
Only state governments (Landesregierungen) have the authority to declare specific municipalities or parts of municipalities as having a 'tight housing market' — but only if 'adequate supply of rental housing at reasonable conditions is particularly endangered' (BGB § 556d(2)). These designations are made via formal legal ordinances and must be regularly reviewed.
Statutory TextWird ein Mietvertrag über Wohnraum abgeschlossen, der in einem durch Rechtsverordnung nach Absatz 2 bestimmten Gebiet mit einem angespannten Wohnungsmarkt liegt, so darf die Miete zu Beginn des Mietverhältnisses die ortsübliche Vergleichsmiete (§ 558 Absatz 2) höchstens um 10 Prozent übersteigen.
— BGB § 556d(1) — German Civil Code
Statutory TextDie Landesregierungen werden ermächtigt, Gebiete mit angespannten Wohnungsmärkten durch Rechtsverordnung zu bestimmen. Gebiete mit angespannten Wohnungsmärkten liegen vor, wenn die ausreichende Versorgung der Bevölkerung mit Mietwohnungen in einer Gemeinde oder einem Teil der Gemeinde zu angemessenen Bedingungen besonders gefährdet ist.
— BGB § 556d(2) — German Civil Code
What Courts Have Said
German courts have clarified key boundaries of the rent brake — confirming when it applies, and importantly, when it does not.
The rent cap rules (§§ 556d ff. BGB) do not apply to agreements that reduce rent during an ongoing tenancy — they only govern rent levels set at the beginning of a new tenancy.
Berlin’s Second Rent Cap Regulation — which designated large parts of the city as a tight housing market — was upheld as legally valid under BGB § 556d(2).
What to Do
Check whether your city or district has been officially designated as a 'tight housing market' — consult your state’s housing ministry website or local tenant association.
Before signing a new lease, compare the offered rent to the official local comparable rent (often published online by cities or tenant unions) — if it exceeds that amount by more than 10%, you may have grounds to challenge it.
If you believe the rent violates the rent brake, raise the issue with your landlord in writing before moving in; if unresolved, you may file a claim in court within the statutory deadline (usually three years from the start of the tenancy).
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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.