Mietpreisbremse
Rent Brake. The cap limiting new-lease rents to 10% above the local comparative rent (Mietspiegel) in state-designated tight housing markets. Federal legal basis extended to 31.12.2029.
Coverage is city-specific and changes: in 2026, most major cities are covered, but e.g. Mannheim dropped out (Jan 2026), Frankfurt's and Wiesbaden's ordinances are in legal dispute, and Duisburg, Bochum, Wuppertal and Mönchengladbach are uncovered. Verify the current ordinance for your target city.
Key exemptions: first letting of new-builds (first occupancy after 01.10.2014) and comprehensively modernised flats. Furnished letting adds a furniture surcharge on top of the permitted rent but is not exempt. Tenants enforce the cap via simple objection: price compliantly from day one.
Frequently asked questions
What is the Mietpreisbremse?
The rent brake, which caps the rent on a new lease at 10% above the local comparative rent in housing markets designated as tight by the state. The federal legal basis runs to 31 December 2029.
Where does the rent brake apply?
Only in areas a federal state has designated as tight housing markets by ordinance. Coverage varies by state and by city, so it must be checked for the specific municipality rather than assumed.
Does the rent brake apply to new builds?
Newly built apartments first let after 1 October 2014 are exempt, as are comprehensively modernised units. The exemption attaches to the building, so it continues to apply on later re-lettings.
What does the rent brake mean for an investor's yield?
It caps the rent achievable on tenant turnover, which limits how far in-place rent can be lifted toward market level in regulated cities. It applies to net cold rent per square metre and is anchored to the local Mietspiegel.