Combating exorbitant rents: countries criticize Bushman

Federal Minister of Justice Marco Buschmann (FDP)

The Federal Council wants to double fines for exorbitant rents and simplify the regulations. But it’s not that simple, says Federal Justice Minister Buschmann.

(Photo: dpa)

If it were up to the Federal Council alone, usurious rents would be punished more severely in future. But Federal Minister of Justice Marco Buschmann (FDP) has concerns. He now has to listen to harsh criticism from the countries.

“The law could have better put those landlords in their place who are profiting from the currently difficult situation on the housing market to the detriment of tenants,” said North Rhine-Westphalian Minister of Justice Peter Biesenbach (CDU) to the Handelsblatt. An increase in the fine would also have a “clear deterrent effect”.

Biesenbach appealed to the federal government to “reconsider this decision, which I cannot understand”.

Rent usurers should pay up to 100,000 euros

In February, the Bundesrat approved a bill at the request of Bavaria and Brandenburg by a majority. Accordingly, the fine for unreasonably high rental demands should be doubled to 100,000 euros. The current fine of 50,000 euros is no longer up-to-date in view of the persistently tight housing market.

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It should also be easier for tenants to prove exorbitant rents. In the future, it would be sufficient if the agreed rent exceeds the local comparative rent by 20 percent and the supply of cheaper living space is small.

>> Also read here: Formally, the Federal Building Ministry does not yet exist

So far, tenants have had to prove that they tried in vain to find a cheaper apartment and that the landlord took advantage of this predicament. This exploitation can hardly be proven in practice, which is why the provision on rent extortion “actually largely runs out”, as the draft justification says.

Federal Minister of Justice Buschmann had recommended a rejection of the initiative in a cabinet proposal. The “Bild” newspaper reported about it first. In a statement adopted by the federal government in the cabinet meeting on March 30, which is available to the Handelsblatt, it says that the Bundesrat’s draft law raises questions with regard to the principle of culpability.

The federal government has “concerns that after the elimination of the subjective element of the offense of using a small supply of comparable rooms”, the corresponding paragraph of the Economic Criminal Law of 1954 “would no longer show any particularly reproachable injustice that justifies sanctioning as an administrative offense with a fine”. In plain language: A penalty is only possible if an accusation of guilt can be formulated.

It goes on to say that the affordability of housing and the formation of appropriate rents on the housing market are important concerns for the federal government. The formation of opinion within the federal government is not yet complete.

Federal Ministry of Justice: Represent the position of the entire federal government

NRW Minister of Justice Biesenbach said he “very regrets” that Buschmann “because of alleged concerns” rejected the draft law presented by the Federal Council to better combat usury. In particular, it would have been much easier in the future to impose a fine on landlords in the event of excessive rent. North Rhine-Westphalia has therefore appeared as a co-applicant in the Bundesrat with good reason.

Bavaria’s Minister of Justice Georg Eisenreich (CSU) told the “Bild” that usurious rents must be combated more vigorously. Many landlords acted responsibly, but the black sheep among them did not deserve protection. He has no understanding for the blockade by the federal government. “Obviously Federal Minister of Justice Marco Buschmann does not take the concerns of tenants seriously,” said Eisenreich.

The Federal Ministry of Justice announced on Monday that it was the coordinated position of the entire federal government. As early as 2019, the Bundesrat had submitted a draft with the same content to the German Bundestag. However, this was not finally discussed there. At the end of the 19th legislative period, it fell under the so-called discontinuity, so it had to be introduced again.

More: Building Minister Geywitz is late in launching the alliance for affordable housing.

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