The Mietpreisbremse is intended to limit the rent for new or re-let flats. With the Tenancy Law Reform Act of 09 June 2001, the federal legislator introduced regulations on the amount of rent. In addition, with the Rent Law Amendment Act of 21 April 2015, the rent brake regulated in §§ 556d et seq. of the German Civil Code (BGB) was included in the Civil Code for the first time. The explanatory memorandum of the draft law contains a comprehensive consideration of all concerns. The aim is to achieve a final balance of interests between the parties to the tenancy agreement. The Rent Adjustment Act of 18 December 2008 is intended to prevent tenants from having to leave their flats due to modernisation. The Act on the Extension of the Period of Consideration for the Local Comparative Rent of 21 December 2019 intended the moderate modification of the "local comparative rent" of Section 558 (2) sentence 1 BGB. The period under consideration was extended from four to six years. On 19 March 2020, the Bundestag passed the Act on the Extension and Improvement of the Regulation on the Additional Rent Level at the Start of the Rental Period, which gave the Länder the option of continuing to apply the Mietpreisbremse for a clearly defined period of time.
The Mietpreisbremse is intended to limit the rent for new or re-let flats. With the Tenancy Law Reform Act of 09 June 2001, the federal legislator introduced regulations on the amount of rent. In addition, with the Rent Law Amendment Act of 21 April 2015, the rent brake regulated in §§ 556d et seq. of the German Civil Code (BGB) was included in the Civil Code for the first time. The explanatory memorandum of the draft law contains a comprehensive consideration of all concerns. The aim is to achieve a final balance of interests between the parties to the tenancy agreement. The Rent Adjustment Act of 18 December 2008 is intended to prevent tenants from having to leave their flats due to modernisation. The Act on the Extension of the Period of Consideration for the Local Comparative Rent of 21 December 2019 intended the moderate modification of the "local comparative rent" of Section 558 (2) sentence 1 BGB. The period under consideration was extended from four to six years. On 19 March 2020, the Bundestag passed the Act on the Extension and Improvement of the Regulation on the Additional Rent Level at the Start of the Rental Period, which gave the Länder the option of continuing to apply the Mietpreisbremse for a clearly defined period.In the meantime, Mietpreisbrems exist in many cities where rents have risen disproportionately in recent years. With the introduction of the Mietpreisbremse, the rent when re-letting existing flats in areas with a tense housing market may not be more than 10% above the local comparable rent. The individual federal states decide when a housing market is tight. The amount of the comparable rent can be taken from the simple or qualified rent index on site.