Berlin-Moabit (Bochumer Straße) – Rent Reduced from €1,500 to €750 and €22,500 Repayment

A matter concluded successfully within just a few weeks illustrates particularly clearly the financial potential of Berlin's rent cap legislation. The apartment in question, a period property on Bochumer Straße in Berlin-Moabit, was let as of 1 October 2023 at a monthly net cold rent of €1,500. With a floor area of 75 m², this corresponds to a price of €20/m².

The rent charged was therefore significantly higher than the level permissible under the rent cap – in fact more than twice as high. The monthly overpayment amounted to around €750.

The formal rent cap objection was raised within the statutory 30-month period under section 556g(2) of the German Civil Code. This meant that repayment of overpaid rent for the entire previous rental period could be claimed.

For the period from October 2023 to March 2026, this resulted in a repayment claim of around €22,500.

On behalf of and with authority from the tenants, the landlord was notified of the breach of the permissible rent level and requested to reduce the monthly net cold rent to €711.96 and to repay the amounts overpaid. At the same time, disclosure of any exception grounds was requested, in particular regarding a possible prior tenancy rent or modernisation measures carried out.

An out-of-court settlement was ultimately reached: the monthly net cold rent was reduced to €750. The repayment amount of €22,500 was structured as a rent credit, meaning that the tenants will pay only €250 per month until early 2030.

This case exemplifies the considerable financial potential that the rent cap can unlock. Where a significantly inflated starting rent, a comparatively low classification under the rent index, and a timely formal objection all coincide, repayment claims can quickly accumulate to substantial sums.