Rent ruling from Berlin: Court overturns upper limits - job centre faces expensive turning point
A recent rent judgement from the Berlin social courts sends out a clear signal: flat-rate Rent caps for accommodation costs (KdU) were criticised or rejected in Berlin. For landlords, asset managers and owners, this means a possible change of course: the previous cap in accordance with the AV-Wohnen is no longer binding as long as no coherent concept is available. Result: The Job centre could more frequently assume the actual, appropriate rents - a potential lever for liquidity and risk management in existing properties.
What was decided - and what does that mean in concrete terms?
According to the information available, the method used to date to determine the upper rent limits in Berlin has been criticised because it does not meet the requirements of a coherent concept (line of case law of the BSG). Translated: If the authority does not provide valid evidence of appropriateness, it must Actual accommodation costs up to the adequacy limit. For landlords, this means that benefit recipients (citizen's allowance) will increasingly be able to pay rents above the previous tables - at least until new, court-proof reference values are established.
Important note: The exact scope depends on the individual case and the status of the proceedings (e.g. legal force). Nevertheless, the direction is clear: blanket caps without viable market data have a difficult time in court.
Why is this relevant for landlords?
Berlin's housing market is tight; households with KdU support are a relevant target group - especially in locations with a medium standard. If upper limits are dropped, the Payment security (job centre as cost bearer), the Rentability increases and vacancy rates can fall. Modernisations are also more likely to be refinanced if the rent is plausibly justified and in line with the market.
Quick economic efficiency check
Example: 60 m², market cold rent € 11.50/m² = € 690; previous upper limit (assumed) € 9.00/m² = € 540. Difference € 150 p.m. If the actual costs are recognised by the court: € +1,800 p.a. Additional income and more stable cash flows - with identical property.
Concrete effects on everyday letting in Berlin
- Demand: More applicants from the KdU segment can represent rents close to the market - less selection pressure.
- Payment security: Direct transfer by the job centre possible; reduces default risks with correctly coordinated communication.
- Index-linked rent: Utilise with a sense of proportion. Increases should remain linked to the market situation and appropriateness.
- Additional costs: Clean, verifiable billing is essential, as the Jobcentre checks ancillary costs in particular.
- New letting and re-letting: Opportunities in terms of downtime and tenant fluctuation - especially in peripheral locations where tenants were previously unwilling to pay.
Typical errors & solutions
Error: Rent purely table-orientated, without market comparison. Solution: Document current comparative rents and offer data, ensure plausibility.
Error: Lack of communication with the job centre. Solution: Coordinate move-in, rent amount, operating costs and, if applicable, direct payment at an early stage.
Error: Imprecise ancillary costs. Solution: Provide transparent heating and operating costs, energy parameters and meter reading documents.
Sample calculations: This is the effect of the abolition of rigid upper limits
Example 1: Basic rent
Old: Upper limit €6.50/m² for 65 m² = €422.50.
Market rent: € 10.00/m² = € 650.00.
Difference: € 227.50 per month. If the actual rent is recognised as reasonable, the eligible basic rent increases by € 2,730 per year - a significant lever when calculating the property.
Example 2: Warm rent
Market cold rent 600 €, prepayment BK/HK 220 € = 820 € warm rent.
Previously: Recognised € 720; difference € 100 p. m. If the full warm rent is recognised (if appropriate): +1,200 € p.a. Pay attention to realistic heating costs - inefficient buildings can „tip over“ due to excessive ancillary costs despite higher rent.
What should owners check now?
- Market and appropriateness check: Does your rent match the location, facilities and offer? Document comparative rents and adverts.
- Drafting of tenancy agreements: Index-linked or graduated rent with a sense of proportion; keep clauses clear, transparent and in line with the market.
- Service charge structure: Recoverable, auditable, plausible. Check potential savings (metering service, energy sources, maintenance).
- Target group management: Consciously address flats suitable for KdU: Floor plans, furnishing standard, communication.
- Process with job centre: Determine collection notification, assumption of costs, direct payment and contact person - avoid delays.
- Modernisation and energy: Prioritise measures with a measurable effect (e.g. hydraulic balancing, insulation of relevant components) - reduces the burden on warm rent.
Legal framework - short and sweet
The KdU recognition follows the principle of reasonable costs. Municipal ceilings must be based on a coherent concept are based. If this is missing, the reimbursement is based on the actual, reasonable rent. The current Berlin judgement is in line with this BSG-influenced line. Acceptance: Implementation may vary depending on the instance; a careful case-by-case examination remains mandatory.
Conclusion: Act strategically, utilise opportunities
The ruling is a signal for the Berlin property market: where rigid upper limits are dropped, the scope for rents in line with the market increases - with greater payment security from the job centre at the same time. Those who now document data properly, keep ancillary costs under control and set up processes professionally will noticeably improve returns and stability. This is precisely where an experienced estate agent can provide support: from market-driven valuation and marketing in line with KdU requirements to structured handover.
Would you like advice? We check your rent, ancillary costs and marketing strategy in a short initial consultation - serious, fact-based, discreet. Enquire now without obligation: flexmakler.de/contact
