The Social Affairs Committee of the Munich City Council has approved the introduction of a rent monitor. This digital tool is designed to analyse online rental advertisements and compare them with the current rent index, taking into account relevant property features. The aim is to inform landlords of possible discrepancies with legal requirements, thereby promoting market transparency. The project is initially limited until 31 December 2028, after which its effectiveness will be reviewed.
Mayor Dominik Krause commented on the necessity of this measure, highlighting the significant burden on Munich's citizens due to record-high rent levels. The city intends to use all available means to counteract the rent price spiral and protect tenants from excessive demands. Should there be significant exceeding of the permissible rent level, landlords will be asked to review their offers. Krause explained that landlords are not always aware of the illegality of their demands, as they often adopt the rents suggested by internet portals, which are sometimes too high.
Challenges in Tenancy Law
In Munich, new leases frequently exceed the already high average rent level. This suggests that demanded rents may violate applicable tenancy law, particularly provisions regarding excessive rents or usury. However, the City of Munich is legally prevented from directly intervening in privately concluded rental agreements.
Sanctioning illegal rent overcharging proves difficult due to high legal hurdles. In particular, the provisions of Section 5 of the Economic Offences Act (WiStG) are scarcely enforceable, as proving the exploitation of a scarce supply of comparable housing is a major challenge, even in a strained market situation like Munich. Given these circumstances, the City of Munich, along with other municipalities, has for many years been calling for a change in federal law, which has not yet been realised.
Commitment to Tenancy Advice
Since 1981, the City of Munich has maintained a tenancy advice centre within the Office for Housing and Migration. This institution supports tenants with questions concerning tenancy law in the private housing sector. Approximately 25,000 advisory discussions are conducted there annually. Munich thus plays a pioneering role in tenancy advice and offers citizens an important point of contact in a complex legal field.
