The City of Munich's Department of Social Affairs will submit a draft resolution for the introduction of a rent monitor to the Social Committee of the City Council on 24 September. This initiative stems from the observation that the already high average rent level is often significantly exceeded in new tenancies. Information and counselling sessions suggest that in many cases, there is a suspicion of excessive rent or even rental usury, according to current tenancy law.
Since the city cannot directly intervene in privately concluded rental agreements, the planned rent monitor aims to proactively alert landlords to potentially unlawful rent demands. The digital tool is designed to systematically record publicly available online offers and identify suspiciously high rents through an online comparison. The stated features of the properties will be compared with the provisions of the currently valid rent index. Subsequently, the landlords concerned will be informed of the legal requirements.
Background and objectives of the monitor
Lord Mayor Dominik Krause noted that rents in Munich have reached a record level, representing a significant burden for Munich residents. The city aims to utilise all available options to curb price development in the rental market and protect people from excessive demands. Krause explained that the city assumes landlords are not always aware of the unlawfulness of their rent demands, especially if they adopt the often excessively high rents suggested by internet portals.
Munich has played a pioneering role in rent counselling since 1981. The Office for Housing and Migration offers a comprehensive rent counselling centre, which supports tenants with questions about tenancy law in the unsubsidised housing sector and conducts around 25,000 counselling sessions annually. However, punishing illegal rent overcharges proves difficult due to high legal hurdles, such as proving the exploitation of a limited supply of comparable housing in accordance with Section 5 of the Economic Crimes Act (WiStG). These unrealistic legal requirements prevent effective intervention by municipalities.
The City of Munich has therefore been calling for a reform of federal legislation for many years, together with other cities, but this has not yet materialised. The rent monitor is planned as a temporary project until 31 December 2028 and will then be evaluated for its effectiveness to contribute to transparency and legal compliance in the Munich rental market.
