Rent control in Hamburg: Current information for property landlords

The rent control as a tool to ensure affordable housing in Hamburg

To protect tenants from continuously rising rent levels in recent years and to keep rental housing affordable, the Hamburg Senate introduced a rent brake in July 2015, which applies to all new rentals across the entire city area. This regulation is based on the federal government’s provision allowing states to independently respond to tense housing market situations. Initially valid for five years, the rent brake was extended in 2020 for another five years after the original regulation expired, meaning the rental rules established will now remain in effect until 2025. How the market situation will develop by then is difficult to predict, according to the real estate agents at Engel & Völkers Hamburg. However, at this time, we do not expect the rent brake to simply expire without replacement after 2025.

How the Mietpreisbremse affects the rent of your property in Bergedorf

If you want to rent out a house, apartment, or similar residential property in Hamburg for the first time, the set rent may not exceed the local comparable level by more than 10%. The basis for determining this comparable level is the Hamburg rent index, which is published regularly and provides information for different locations, property sizes, and quality standards. If no suitable comparable value can be derived—for example, if the characteristics of an exceptional property are not covered by the rent index—then three similar comparison properties may be used instead. The median rent of these properties is then considered the corresponding threshold value.

As a regulatory factor, the rent brake certainly limits the maximum return expectations that might otherwise be possible given Hamburg’s high demand. However, due to the still generally high rent levels and subsequent possibilities to adjust rents within the allowable increase limits, renting out properties in Hamburg remains an attractive overall concept for owners, according to real estate agents. To establish a long-term profitable, stable, and hassle-free rental of your house or apartment in Bergedorf, feel free to contact your personal advisor at Engel & Völkers Hamburg!

Are there exceptions to the Mietpreisbremse when letting out a property?

In fact, the rent brake does not apply to all new rentals: For newly constructed properties—meaning houses or apartments completed after October 1, 2014 and rented out for the first time—you may set a rental price independently of the rent brake. Properties that have undergone extensive modernization are also treated as new builds by law, provided a certain level of refurbishment has been met, which means that prices exceeding 10% above the local comparative rent are also permitted in these cases.

A third exception applies when a property was previously rented at a price above the limit set by the rent brake. If the house or apartment is subsequently re-rented, the previous rental price serves as the upper threshold, meaning the rent brake will not result in a de facto reduction of your rental income.

Would you like to learn more about the rent brake or rent out your property in Hamburg Bergedorf and surrounding areas under the best conditions? Your Engel & Völkers Hamburg real estate agent will be happy to assist you reliably and professionally. Together, we will review your individual situation in a personal consultation, which you can book free of charge and with no obligation. Simply call us at +49 40 2263051-0 or fill out our online contact form. We look forward to helping you successfully realize your rental plans soon!