Berlin-Friedrichshain: Significant Rent Reduction Achieved Through an Out-of-Court Settlement

Berlin-Friedrichshain (Schreinerstraße): Significant Rent Reduction and Repayment Achieved Through an Out-of-Court Settlement

In another matter handled by our firm involving the enforcement of Berlin’s rent control rules, a substantial excessive rent was successfully corrected in Berlin-Friedrichshain. The apartment concerned, a period property in the Samariterviertel on Schreinerstraße, was newly let in September 2025 at a monthly net basic rent of €1,220. Under the Berlin rent index, however, the legally permissible rent for an apartment with a floor area of 73.45 square metres was significantly lower.

Shortly after the tenancy began, the tenants had the rent reviewed by legal counsel and formally objected on the grounds that it exceeded the limits imposed by the rent control rules. The landlord, who was himself a lawyer, initially argued that the tenants’ claims amounted to an abuse of rights because they had already been aware of the rent level when entering into the tenancy agreement. That argument, however, does not succeed as a matter of law. The rent control provisions under sections 556d et seq. of the German Civil Code are mandatory law. The only decisive question is whether the agreed rent exceeds the statutory maximum and whether any legal exception applies.

As no agreement could initially be reached out of court, proceedings were commenced before the Kreuzberg Local Court. During the course of the litigation, however, the parties ultimately entered into constructive settlement discussions.

As a result, the parties agreed on an amendment to the tenancy agreement providing that the monthly net basic rent had been €825 from the very beginning of the tenancy. Compared with the rent originally agreed, this amounted to a substantial and lasting rent reduction. In addition, the landlord undertook to pay compensation for rent overpaid and to bear the majority of the legal enforcement costs incurred.

This case illustrates that it can be worthwhile to review the rent even in newly concluded tenancy agreements. Particularly in highly sought-after areas of Berlin, rents are not infrequently agreed at levels well above the statutory limits. Berlin’s rent control rules are therefore an effective instrument for correcting excessive rents and achieving an appropriate resolution between the parties.