What is the rent brake?
The rent brake (§ 556de BGB, German Civil Code) is a statutory regulation that limits the rent for re-letting residential units in areas with a tense housing market. It was introduced nationwide in 2015 and is intended to prevent new-contract rents from rising uncontrollably in sought-after locations.
The core rule
The rent at the time of a new contract may be at most 10 % above the local comparative rent. The local comparative rent is determined by the rent index (Mietspiegel) or by an expert's report. If the agreed rent exceeds this, the tenant can reduce the rent to the permissible level.
Distinction from other regulations
The rent brake should not be confused with:
- Cap limit (§ 558 BGB): limits rent increases for existing contracts to 20 % within three years.
- Graduated rent and index rent: are not subject to the rent brake at the time of contract conclusion, but are subject to the cap limit.
Where does the rent brake apply in the Ruhr region?
The rent brake only applies in areas that have been designated as "tense housing markets" by the respective federal states. In North Rhine-Westphalia (NRW), a statewide regulation covers the following cities and municipalities:
Mülheim an der Ruhr
- In force since: 2020, across the entire city
- Rent index: qualified rent index available
- Special feature: the rent brake applies to the entire city area.
Essen
- In force since: 2015 (one of the first cities in NRW)
- Rent index: qualified rent index, updated every two years
- Special feature: the rent brake also applies in peripheral areas, which in practice leads to problems because the comparative rent is lower there.
Duisburg
- In force since: 2022, across the entire city
- Rent index: simple rent index, qualified rent index in preparation
- Special feature: previously, the rent brake only applied in certain districts (e.g. Duisburg-Mitte, -Süd). Since 2022, it applies citywide.
Oberhausen
- In force since: 2022, across the entire city
- Rent index: simple rent index
- Special feature: introduced in parallel with Duisburg.
How does the rent brake work in practice?
The local comparative rent
The local comparative rent forms the upper limit for the new-contract rent. It is determined by:
- Qualified rent index (recognised in court)
- Simple rent index (less robust)
- Expert's report (expensive, but accurate)
- Comparative apartments (at least three comparable units)
Example calculation
In Mülheim an der Ruhr, the local comparative rent for an 80 m² apartment in standard condition is €10.50/m². The permissible maximum rent is:
- Comparative rent: €10.50 × 80 m² = €840
- Surcharge 10 %: €84
- Maximum permissible rent: €924
If the landlord charged €11.00/m² (€880), this would be within the limit. At €12.00/m² (€960), the rent would be impermissible and the tenant could reduce it to €924.
When does the rent brake apply?
The rent brake only applies to the conclusion of a new tenancy agreement:
- After the previous tenant moves out
- Not applicable to newly created living space (new build)
- Not applicable to changes in the existing rent (e.g. through modernisation)
Exceptions to the rent brake
1. First letting after new build or renovation
Apartments that are let for the first time after comprehensive renovation (modernisation within the meaning of § 555b BGB that expands the living space or improves the use) are exempt from the rent brake. This only applies if the renovation has "significantly" improved the apartment.
2. Previous tenancy before introduction
If the previous tenancy agreement was concluded before the rent brake was introduced in the respective city, the rent brake does not apply to the re-letting, provided the apartment has not been comprehensively renovated.
3. Letting to relatives
Apartments let to family members do not fall under the rent brake. This exception is controversial, but permissible under current law.
4. Furnished apartments and temporary living
For furnished apartments and temporary living (fixed-term tenancy agreements), the rent brake only applies to a limited extent. However, the furnishing must be "significant" and have its own economic value.
5. Social housing
Apartments with public funding (social housing, housing entitlement certificate) are subject to tenancy law restrictions, not the rent brake.
Tenant's rights in case of violation
If the landlord agrees a rent that is more than 10 % above the local comparative rent, the tenant has the following rights:
- Reclaiming overpaid rent from the date of payment
- Adjustment of the rent to the permissible level
- Damages in case of intentional conduct by the landlord
The tenant must prove the impermissibility of the rent, for which they usually need to commission an expert.
Deadlines
- Reclaiming overpaid rent is possible within 30 months of payment (limitation period).
- An adjustment of the rent can be proven at any time if the landlord cannot rely on an exception.
Current case law and developments
Federal Constitutional Court 2020
The Federal Constitutional Court declared the rent brake constitutional in 2020. The court considered the interference with the property guarantee (Art. 14 GG) to be justified in order to strengthen social tenancy law.
Current discussions 2025/2026
The current political debate includes discussions about tightening the rent brake:
- Reducing the permissible surcharge from 10 % to 5 %
- Extending it to fixed-term tenancy agreements and furnished apartments
- Strengthening transparency in the determination of the comparative rent
These tightenings have not yet been adopted, but landlords should follow the development closely.
Rent index reform 2025
The rent index reform has tightened the requirements for qualified rent indices. From 2025, rent indices must be compiled using recognised scientific methods and updated every two years. This increases legal certainty for landlords and tenants.
Practical consequences for landlords in the Ruhr region
1. Check comparative rent in advance
Before concluding a tenancy agreement, the landlord should document the local comparative rent in writing. Options include:
- Extract from the rent index with quality class and building age
- Comparative apartments from their own portfolio
- Expert report (recommended for high-priced apartments)
2. Check and document exceptions
Every exception to the rent brake (first letting, renovation, relatives) must be checked and documented before the contract is concluded. The documentation should be filed in the apartment's file.
3. Secure furnished apartments correctly
For furnished apartments, the furnishing must have its own economic value. The furniture should be listed individually in the tenancy agreement and given a value.
4. Rent increase due to modernisation
The rent brake does not apply to rent increases due to modernisation (§ 559 BGB). The modernisation surcharge can be calculated independently (8 % of the annual net rent). However, the rent after modernisation must not exceed the maximum limit of 10 % above the comparative rent of the modernised apartment – the legal situation here is complex.
5. Prevent reclaiming
To prevent reclaiming, the landlord should provide the comparative rent documentation to the tenant at the time of contract conclusion (e.g. as an annex to the tenancy agreement). This creates transparency and protects against later objections.
Rent indices in the Ruhr region: where do rents stand?
Mülheim an der Ruhr (as of 2025)
- Standard residential (1960s–1970s): €7.50 to €11.00/m²
- Good residential (1980s–1990s): €9.00 to €13.50/m²
- High-quality residential (from 2000): €12.00 to €18.00/m²
- Best locations (e.g. Speldorf, Saarn, Heißen): up to €20.00/m²
Essen (as of 2025)
- Standard residential: €7.00 to €10.50/m²
- Good residential: €8.50 to €13.00/m²
- High-quality residential: €11.50 to €17.00/m²
- Best locations (e.g. Werden, Bredeney, Kettwig): up to €22.00/m²
Duisburg (as of 2025)
- Standard residential: €6.00 to €9.00/m²
- Good residential: €7.50 to €11.00/m²
- High-quality residential: €10.00 to €15.00/m²
- Best locations (e.g. Duisburg-Süd, Huckingen): up to €16.00/m²
Oberhausen (as of 2025)
- Standard residential: €5.50 to €8.00/m²
- Good residential: €7.00 to €10.00/m²
- High-quality residential: €9.50 to €13.00/m²
These values are guidelines and may vary depending on location, condition, furnishings and energy efficiency. The rent indices of the respective cities offer detailed tables.
Common mistakes by landlords
1. Comparative rent not documented
Many landlords agree a rent without checking the comparative rent. In the event of a dispute, they cannot prove the rent is justified.
2. Exception interpreted too generously
The exception "first letting after renovation" is often interpreted too broadly. A mere cosmetic repair or partial renovation is not sufficient. The renovation must have "significantly" improved the apartment.
3. Furnishing without economic value
If an apartment is offered as "furnished" without the furniture having an economic value (e.g. an old wardrobe and a table), the rent brake applies in full.
4. Deadline for reclaiming underestimated
The 30-month reclaiming period is often underestimated by landlords. During this time, the tenant can challenge the rent and reclaim overpaid rent.
5. Modernisation surcharge calculated incorrectly
The modernisation surcharge is independent, but the total rent after modernisation must not exceed the 10 % limit of the comparative rent of the modernised apartment. This complex calculation is often applied incorrectly.
Conclusion
The rent brake is in force across the entire Ruhr region in Mülheim, Essen, Duisburg and Oberhausen. Landlords must check and document the local comparative rent before concluding a contract, correctly classify exceptions and keep the rent within 10 % above the comparative rent.
The most important recommendations:
- Document the comparative rent: record it in writing before every contract conclusion.
- Check exceptions: first letting, renovation, relatives – examine carefully and document.
- Use the rent index: use a qualified rent index where available.
- Secure furnishing correctly: demonstrate the economic value of the furniture.
- Get advice early: if in doubt, involve a lawyer specialising in tenancy law.
- Follow developments: the tightening of the rent brake is under discussion – adapt in good time.
Wellhöner Immobilien advises landlords in the Ruhr region on proper letting – from determining the permissible rent to contract design and modernisation surcharges. Talk to us if you have questions about the rent brake or the marketing of your property.
