Hamburg landlords bypass rent caps via commercial leases

The Association of North German Housing Companies (VNW) has called on the Hamburg Senate to take action against a practice used by landlords to bypass the rent brake (Mietpreisbremse).

According to the VNW, some landlords are circumventing rent caps by formally leasing apartments as commercial spaces rather than residential ones. This is achieved by signing lease agreements with a third party who then sub-leases the property commercially to the actual resident. Because commercial leases are not subject to the rent brake, landlords are reportedly charging more than 20 euros per square meter.

Additionally, this arrangement allows landlords to pass maintenance costs onto the residents. VNW Director Andreas Breitner expressed doubts regarding the legal validity of using commercial contracts with the explicit intent of evading residential rent protections. The association is urging the Senate to tighten the Hamburg Housing Protection Act to prevent such loopholes.