Skip to content
70 days left
Property management, reimagined−25 % off every planGet going with CIRO – 25 % off every plan
Try itSign In

Rent Cap (Mietpreisbremse)

Rent cap (Mietpreisbremse) in Germany explained: where does it apply, what exceptions exist, and what must landlords consider?

Legal
§ 556d BGB

Also known as: rent control, rent price brake, rent ceiling

The rent cap (Mietpreisbremse) under German law limits the rent for re-lettings to a maximum of 10% above the local comparable rent (ortsuebliche Vergleichsmiete). Exceptions exist for new-build properties, comprehensively modernized apartments, and cases where the previous rent already exceeded the rent cap limit. (§ 556d BGB, MietNovG 2020)

Related Terms

Local Comparable Rent (Ortsübliche Vergleichsmiete)Index-Linked Rent (Indexmiete)Notice Periods (Kündigungsfristen)Vacancy (Leerstand)

Related articles

Articles from the CIRO Magazine covering this topic

Rent arrears in Germany: professional debt management guide
5 min read

Rent arrears in Germany: professional debt management guide

A tenant in payment default can destabilize your entire financial planning. With tight calculations, every rental loss becomes an existential risk for your property financing. The good news: professional debt management protects you legally from payment defaults.

Markus FroeseMarkus Froese24.04.2026
German Rent Law Reform 2026: What Landlords and Tenants Need to Know
4 min read

German Rent Law Reform 2026: What Landlords and Tenants Need to Know

Capping index-linked rents, closing loopholes in rent control, strengthening tenant protections – German Federal Minister of Justice Stefanie Hubig (SPD) has introduced a sweeping draft bill to reform the country's rental law. Finding affordable housing in Germany's major cities has become increasingly difficult, and the proposed legislation aims to address several well-known gaps in the existing rent control framework. This guide breaks down the planned changes and explains what they mean for landlords and tenants in Germany.

Denise SonnenscheinDenise Sonnenschein12.02.2026
BGH Subletting: Profit-Making Subletting Not Lawful – Landlord Rights Strengthened
3 min read

BGH Subletting: Profit-Making Subletting Not Lawful – Landlord Rights Strengthened

Is subletting permitted? This is a question both tenants and landlords ask when it comes to passing on living space to third parties. Subletting, Airbnb, temporary rentals—especially in metropolitan areas like Berlin or Munich with tight housing markets, the prospect of gaining a financial advantage through short-term rentals or permanent subtenancy arrangements is tempting. But what legal limits apply to subletting?

Denise SonnenscheinDenise Sonnenschein03.02.2026
Back to Glossary