The German rent brake (Mietpreisbremse) does not apply everywhere: the Civil Code provides exceptions for new-build flats and for the first letting after comprehensive modernisation. If you are looking for a room or flat in a recent building, this decides the permitted rent at the start of the tenancy. This guide explains the cut-off date, the exceptions and the questions you can put to the landlord. More housing topics are in our housing guide for students.
In short: The rent brake (section 556d BGB) does not apply to a flat that is used and let for the first time after 1 October 2014 (section 556f sentence 1 BGB), nor to the first letting after comprehensive modernisation (section 556f sentence 2 BGB). Otherwise rent at the start of a tenancy may be at most 10 percent above the local comparative rent. Last updated: November 2026.
Key points
- The rent brake limits the rent at the start of a tenancy, in areas designated by state ordinance, to at most 10 percent above the local comparative rent (ortsübliche Vergleichsmiete).
- New builds first used and let after 1 October 2014 are exempt.
- The first letting after comprehensive modernisation is exempt too.
- Further exceptions cover temporary lets and student or youth dormitories.
- On request the landlord must give you information about the facts that support the exception.
What is the rent brake and when does it apply?
The rent brake regulates the rent at the start of a tenancy. Under section 556d (1) BGB it may be at most 10 percent above the local comparative rent in areas with a tight housing market. The German states designate those areas by ordinance. According to the current text of the law, these ordinances must expire at the end of 31 December 2029 at the latest. On the extension see Rent brake until 2029.
The rule concerns new lettings. An existing rent is not reduced by it. Rent increases within an existing tenancy follow other rules, see Rent increases for a shared-flat room.
Which new-build exception applies under section 556f BGB?
Under section 556f sentence 1 BGB, section 556d does not apply to a flat that is used and let for the first time after 1 October 2014. Two features must coincide: the flat is used for the first time and let for the first time, and this happens after the cut-off date. A flat that was previously lived in or let does not fall under it, even if the building was renovated.
The wording refers to the flat, not to the first tenant. Therefore the exception also applies, on the wording, to later lettings of the same flat. A 2018 new build stays exempt when a second tenant moves in after the first. Decisive is whether the conditions are met in the individual case, and in a dispute a court can decide.
What applies after comprehensive modernisation?
Under section 556f sentence 2 BGB, sections 556d and 556e do not apply to the first letting after comprehensive modernisation. This means an older building renewed so thoroughly that its quality comes close to a new build. The text of the law names no fixed cost threshold. Whether a measure is comprehensive is assessed case by case and is a frequent point of dispute.
Important: the exception only covers the first letting after the modernisation. At every further new letting the rent brake applies again, provided the flat lies in an area covered by an ordinance. Minor repairs, a fresh coat of paint or a new kitchen alone are not enough.
Which other exceptions exist?
| Exception | Legal basis | In brief |
|---|---|---|
| New build after 1 October 2014 | Section 556f sentence 1 BGB | First used and let after the cut-off date |
| First letting after comprehensive modernisation | Section 556f sentence 2 BGB | Only for the first letting afterwards |
| Temporary letting | Section 549 (2) no. 1 BGB | Living space let only for temporary use |
| Furnished room in the landlord’s own flat | Section 549 (2) no. 2 BGB | Room in the flat the landlord lives in, mainly furnished, not for permanent family use |
| Student and youth dormitory | Section 549 (3) BGB | Rules on rent at the start of a tenancy and rent increases do not apply |
| Previous rent and modernisation before the contract | Section 556e BGB | Separate exceptions, see the article on previous rent |
For shared-flat rooms the key question is who the landlord is. See Does the rent brake apply to shared-flat rooms? and Previous rent under the rent brake (in German).
How do you check whether the rent is permitted?
Assumption: the local comparative rent for your flat is 9.00 euros per square metre, the flat has 30 square metres, the rent brake applies in the area and no exception applies. The permitted rent excluding utilities at the start of the tenancy is then at most 9.90 euros per square metre, that is 297 euros. If the flat is a new build first let after 1 October 2014, the landlord may ask for more, for example 13 euros per square metre (390 euros), subject to general limits such as the offence of rent extortion.
You find the local comparative rent in your city’s rent index. How that works is explained in Finding and reading a rent index. The energy performance certificate, which must be available with the advert or at the viewing, often helps with the year of construction. It does not say when the flat was first let, however.
Which questions should you ask the landlord?
- When was the building ready for occupation, and when was the flat first used and let?
- Was the flat modernised comprehensively before, and when was the first letting afterwards?
- What was the predecessor’s rent, if a previous rent is claimed?
- Is the flat in an area covered by a state ordinance?
Under the rent brake rules (section 556g BGB) the landlord must give you information on request about the relevant facts. Ask in writing so that you have proof.
Frequently asked questions
Is every new build exempt from the rent brake?
Only flats first used and let after 1 October 2014. A building with an older year of construction that was later renovated is not automatically exempt.
Is a fully renovated old building a new build?
Only if the modernisation is comprehensive, and then only for the first letting afterwards. A single measure is not enough.
Does the exception apply in a dormitory?
For student and youth dormitories the rules on rent at the start of a tenancy do not apply under section 549 (3) BGB. Costs there are covered in Costs in a student dormitory.
Can I reclaim an excessive rent?
The law provides consequences for breaches, tied to deadlines and a complaint to the landlord. Tenants’ associations and your university’s advice service help with the check.
Where do I check the current text of the law?
At gesetze-im-internet.de, where section 556f BGB appears in its current wording with footnotes on amendments.
What to do now
- Check whether the flat lies in an area covered by a state rent brake ordinance.
- Ask the landlord in writing about year of construction, first letting and modernisation.
- Find the local comparative rent in the rent index and add 10 percent.
- Keep the advert, the contract and the landlord’s answers.
- If in doubt, seek advice from a tenants’ association.
Related guides
- Housing while studying: rent, shared flats, dorms and housing benefit
- Rent brake until 2029: what students need to know
- Does the rent brake apply to shared-flat rooms?
- Finding and reading a rent index
- Affordable student housing: strategy, portals and costs
Sources: Section 556f BGB, exceptions, Gesetze im Internet (in German); Section 556d BGB, permitted rent at the start of a tenancy, Gesetze im Internet (in German); Section 549 BGB, provisions applicable to residential tenancies, Gesetze im Internet (in German).
Last updated: November 2026. This guide is general information, not individual advice.
