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31 12 2015
The Year 2016: Things that Landlords And Owners Have To Adjust To

Whether Energy Conservation Act or residential mortgage loans, the New Year will bring real estate purchasers, owners and landlords a lot of new regulations. We are going to give you an overview on the most important legal innovations.

Planned Amendment Of Rent Law Restricts Rent Increases

A tightening of the Rent law is scheduled. Rental increases resulting from measures of modernisation, inter alia, are to be limited. In future, only 8% of modernisation costs per year might be charged then to the tenant. Furthermore, a cap on residential rent increases could be applied after modernisations. Within a period of eight years, rents should be allowed to increase by not more than 50% or by EUR 4.00 per square metre at most.

Rental Price Break Will Become Effective In Further States Of Germany

In 2016, landlords must expect a dissemination of the rent control laws in Germany. Whereas in the current year merely nine federal states out of sixteen have implemented the rental price brake since it came into force on June 1st, more States will follow in the upcoming year. From January 1st, it will be valid in 31 municipalities of Brandenburg. The rental price break could be implemented in 2016 in Lower Saxony and Thuringia, too. Solely Saxony, Saxony-Anhalt, Mecklenburg-Western Pomerania and Saarland are not planning any introduction at the moment. The rent control laws provide that the price for rental after re-letting may not be more than 10 % of the local comparable rent.

Extension Of Residential Mortgage Loans Subject To New Regulations

For reasons of consumer protection, the legislator has to implement the EU directive dealing with the extension of residential mortgage loans by March 2016. On the one hand, it will enhance the duty to supply information and on the other hand, banks will make stricter assessments when rating the credibility of customers. The purpose of this Regulation is to make the granting of credit more transparent and customer-friendly.

EnEV 2016 (Energy Conservation Act) - Tightening Of Energy Standard Requirements For New Buildings

Moreover, a further accentuation of the Energy Conservation Act will come into effect on 1st 2016 requiring significantly higher energy standards for new buildings. This includes a decrease in the primary energy demand of at least 25 % and a 20% improvement in thermal heating. The amendment applies to properties with building applications being submitted from New Year 2016 onwards.