If landlords demand extreme rents, this can legally be considered rent usury – but the hurdles for those affected are high. Our overview explains the legal thresholds, practical cases and options for tenants.
Rent usury occurs when a landlord unfairly increases his rent above the usual level and thereby takes advantage of the tenant. In Germany, rent usury is regulated by law in Section 5 of the Economic Crimes Act. Accordingly, one commits an administrative offense if the rent charged is more than 20 percent above the local comparative rent. If the rent is even 50 percent above the rent index, this can even be considered a criminal offense according to Section 291 of the Criminal Code, as Mietrecht.com explains.
What is crucial is not only the amount of the rent, but also whether the landlord is taking advantage of the tenant’s predicament – for example if the housing market is tight or there is an urgent need for housing. In practice, however, it turns out that proving this exploitation is very difficult, as Melanie Weber-Moritz, the President of the German Tenants’ Association, emphasized to the RND in this context. Even if the rent is significantly above average, courts must determine in individual cases that there has been an abuse of the predicament, which makes enforcing the ban complicated.
One case is causing a stir in this regard: In Berlin, a landlady was fined 26,000 euros because she had charged a rent that was far too high. The rent charged was around 190 percent above the local rent index – and this meant that the Friedrichshain-Kreuzberg housing authority resorted to Section 5 of the Economic Crimes Act for the first time.
If you suspect excessive rents, you should first check the local rent index to assess the legality of the rent. This can be viewed on Mietspiegeltafel.de or applied for at verwaltung.bund.de. A conversation with the landlord can sometimes also clarify whether a reduction is possible. If there are further suspicions or a lack of cooperation from the landlord, it is worth seeking legal advice or support from the Tenants Protection Association in order to effectively defend yourself against excessive rents.
Since the legal situation regarding rent usury is currently still complicated, it may make sense to also take out tenants’ legal protection insurance. It offers support in legal questions, covers, among other things, legal fees and can help those affected to enforce their claims if there is suspicion of excessive rent or rent usury, as Mietrecht.com explains.
The legal situation regarding rent usury is currently unclear and complicated. Although there are initial fines, as in the case of the Berlin landlady, enforcing the ban is complex and lengthy. The federal government has set up a tenancy law commission to examine where there is a need for improvement in tenancy law – including rent usury.
The results of this expert group are not expected until the end of 2026, as the RND reports, which seems too late to many of those affected. Until then, it remains unclear which specific measures will actually take effect and whether the fines will increase or regulations will be simplified.
As the RND also mentions, various federal states, such as Bavaria, also want to promote the issue independently. In 2019, the Free State ventured forward with a legislative initiative to better combat rent usury. Overall, however, tenant protection will remain an important point of contention in the coming years – and tenants will continue to have to prepare for long decision-making processes.
M. Maier/editorial team finanzen.net