GER: More Time for Rent-Cap Tenants, Germany’s BGH Rules

Aug 11, 2023 Benn-Ibler Rechtsanwälte

In a recent ruling, the German Federal Court of Justice (Bundesgerichtshof, hereinafter BGH) decided when a tenant’s right to obtain information from the landlord becomes statute-barred. This means that tenants who live in areas with a rent cap and who may be paying too much for their accommodation will now have plenty of time to obtain important information about the legality of their rent.

The Mietendeckel (rent cap) was introduced in 2015 to avoid excessive rent increases in areas where the housing stock is tight. It will initially apply until 2025. Where a rent cap is in place, rents cannot exceed 10% above comparable local rents. In other words, it puts a ceiling on the rent. If the tenant is paying too much, they can ask for the extra amount back. However, this requires the tenant to complain about the rent within 30 months of starting to rent.

However, enforcing this right is often difficult for tenants. In order for tenants to even be able to check compliance with the rent price cap, certain information is needed from the landlord.

So far, it has been unclear when the three-year limitation period for the tenant’s right to information against the landlord begins. The BGH now had to decide on this issue.

Some of the higher regional courts had considered the starting point to be the date on which the tenancy agreement was concluded.

The claim for information is time-barred independently of the tenant’s claim for repayment of overpaid rent, the BGH has now clarified. The statute of limitations does not begin when the right to information arises upon signing the lease, but rather only when the tenant requests the information. This means that the right to information can become time-barred before the right to repayment, contrary to the assumption of the court of appeal. In future, tenants who suspect a violation of the rental price cap will have more time to obtain information from the landlord.

Press Release No. 110/2023 on BGH VIII ZR 375/21 (12 July 2023)