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Berlin Rent Act passed - What are the practical consequences?

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Dr Christian Hilmes

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Hamburg

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Scheel Jochen
Dr Jochen Scheel

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Dr Michael Fink

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Fischer Matthias
Matthias Fischer

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Olgemoeller Udo Herbert
Dr Udo Herbert Olgemöller

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07 February 2020

On 30 January 2020, Berlin’s House of Representatives passed the hotly discussed Berlin Rent Act, introducing the so-called “rent freeze”. It is expected to come into force in late March/early April 2020 with retroactive effect as of 18 June 2019.

In what specific cases does the Rent Act apply and what are the legal consequences in the event of non-compliance? Is the legislation constitutional and what about including reserve clauses for new residential lease agreements in case the Rent Act does prove unconstitutional?

Our bulletin summarises the essential developments and gives a first evaluation from the real estate law perspective.