By Hildburg Bruns and Sara Orlos Fernandes
What madness: While energy costs are exploding, Vonovia boss Rolf Buch (57) is also expecting extreme rent increases.
“If inflation is permanently at four percent, rents will have to increase accordingly every year in the future,” said Germany’s largest landlord in the “Handelsblatt”.
The Berlin Tenants’ Association is alarmed. “For a 1:1 translation of the inflation rate into rent increases, there is neither an economic reason nor admissibility under tenancy law in the vast majority of tenancies,” said Managing Director Reiner Wild.
Vonovia boss Buch added: “We can’t pretend that inflation is passing rents by. That won’t work.” The head of the tenants’ association is certain that Vonovia shareholders are breathing down Buch’s neck. Wild: “The stock value falls.”
How does Maren Kern, head of the Berlin-Brandenburg Housing Association (BBU), see the development? “Of course, high inflation will not leave rents unaffected. However, we do not see comparable increases in Berlin.” Kern continues: “The scope is clearly regulated in the law.”
Vonovia tenant Heidrun P. (56) pays 924 euros for 93 square meters in Soldiner Kiez. The postal worker: “I expect the rent to go up because the pipes are being made here. But the elevator doesn’t work every few days and the condition of the house is not the best” Photo: Olaf Selchow
Inflation between April 2021 and 2022 was 7.9 percent – housing costs have increased by 2.2 percent over the same period. Kern: “That shows the dampening effect of tenancy law.”
The Vonovia boss has two more problems
Less new construction: Due to rising interest rates, the company only wants to spend 1.3 billion euros on existing and new buildings instead of 2.1. “This should mean that the group will build 13,000 new apartments in Berlin in the next few years,” says rental expert Niklas Schenker (left).
Energy price explosion: “We did the math,” says Vonovia boss Buch, “that can cost up to two additional months’ rent a year. There’s social explosives in there.”
Vonovia tenant Pascal P. (36) from Wedding works in metal construction and pays 567 euros for 51 square meters: “We all know that rents are rising. On the one hand, I think that’s justified. But there are no water meters here and a flat rate is charged. I have to bear other people’s water costs, I’ve already had to pay twice.” Photo: Olaf Selchow
However, a company spokeswoman made it clear for Berlin: The commitment to the Senate is complete. According to this, over the next three years, the capital stock with 42,000 apartments should be increased by a maximum of one percent on average.
