70 percent of rental offers in Ulm: An expensive fiasco for tenants!

70 percent of rental offers in Ulm: An expensive fiasco for tenants!

The rental price situation in Ulm is causing excitement and incomprehension. A current analysis by the German Tenants' Association shows that a whopping 70 percent of rental offers in the city violate the rent cap. This means that potential tenants are confronted with excessive prices, which are often more than 10 percent higher than the typical local rent. These shocking figures are the result of an investigation spanning more than a year and are based on over 20,000 online advertisements from the last few months.

None other than Ulm's construction mayor, Tim von Winning, found it difficult to hide his concern about this development and described the situation as a “terrifying figure”. The problem is particularly explosive because in 15 percent of the cases examined, the rent even exceeds the rent limit, which could have legal consequences for the landlord. However, according to the study, these offenses appear to be the rule rather than the exception. Almost half of the rental prices in Ulm are actually administrative offenses or even criminal offenses. Compared to the federal capital Berlin, Ulm performs even worse, because while the violations are less severe in Berlin, Ulm remains a hotspot for overpriced rental prices.

The rent control and its challenges

The rent brake, which was originally launched by the grand coalition in 2015, was intended as a protective measure to prevent unlimited rent increases in tight housing markets. In order to effectively implement the rent cap, it was decided that the rent for new rentals must not be more than 10 percent above the local reference rent. But the reality looks different.

The average net rent in Ulm is currently 13.52 euros per square meter, while the rent cap would only allow an increase to 12 euros per square meter. Many landlords use existing regulations and exceptions to enforce high rents. The misapplication of the rent cap is also criticized: tenants' associations report that the legal regulation is used rather poorly. This is due not least to complicated regulations and tenants' fear of losing their apartments.

Tackling the housing market

The analysis by the German Tenants' Association not only reveals the annoying violations, but also emphasizes that tenants should actively stand up for their rights. Under certain circumstances, the reclaim of overpaid rent is possible up to 30 months after the start of the rental period. In order to increase the pressure on landlords, the tenants' association is calling for a reform of the regulations against rent usury and a more legally binding approach against violations.

Despite the obvious problems, there remains hope for an improvement in the housing market. The rent cap was extended until 2029 to prevent further uncontrolled increases. But for this to succeed, a rethink must take place both in politics and among landlords. The need for action is high and requires urgent attention from everyone involved.

So it remains exciting for the tenants in Ulm: Will the situation change soon and can they hope for a fairer rental policy or will they continue to have to deal with excessive rent prices?

You can read more about how the rent control works in Ulm and other cities in these reports: SWR, Augsburger Allgemeine, and daily news.